Analyst(s): Keith Kirkpatrick, Daniel Newman
Publication Date: June 12, 2025
Oracle’s Q4 FY 2025 earnings highlight strong momentum across cloud infrastructure and applications, supported by growing multicloud adoption and robust customer demand. The company’s robust backlog and aggressive expansion position it for further acceleration in FY 2026.
What is Covered in this Article:
- Oracle’s Q4 FY 2025 financial results
- Cloud infrastructure growth driven by AI and multicloud expansion
- SaaS momentum supported by Fusion, NetSuite, and embedded AI agents
- Aggressive data center build-out to support record backlog growth
- FY 2026 guidance projecting acceleration across revenue, OCI, and RPO
The News: Oracle Corporation (NYSE: ORCL) announced its fiscal Q4 FY 2025 financial results, reporting total revenue of $15.9 billion, up 11% year-on-year (YoY) and 2% above consensus estimates. Cloud services and license support revenue reached $11.7 billion, up 14% YoY, while cloud license and on-premise license revenue was $2 billion, up 9% YoY.
Cloud revenue, comprising Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), totaled $6.7 billion, up 27% YoY. Cloud Infrastructure (IaaS) revenue grew 52% YoY to $3 billion, while Cloud Applications (SaaS) revenue rose 12% YoY to $3.7 billion. Non-GAAP operating income was $7 billion (+2.8% above consensus), up 5% YoY, with a non-GAAP operating margin of 44% (Q4 FY 2024: 47%).
Non-GAAP net income stood at $4.9 billion, up 6% YoY. Non-GAAP diluted earnings per share (EPS) was $1.70 (Q4 FY 2024: $1.63), exceeding consensus of $1.64. Oracle’s remaining performance obligations (RPO) climbed 41% YoY to $138 billion, highlighting robust future revenue visibility.
“FY 2025 was a very good year – but we believe FY 2026 will be even better as our revenue growth rates will be dramatically higher,” said Safra Catz, CEO at Oracle. “We expect our total cloud growth rate – applications plus infrastructure – will increase from 24% in FY 2025 to over 40% in FY 2026. Cloud Infrastructure growth rate is expected to increase from 50% in FY 2025 to over 70% in FY 2026. And RPO is likely to grow more than 100% in FY 2026. Oracle is well on its way to being not only the world’s largest cloud application company – but also one of the world’s largest cloud infrastructure companies.”
Oracle Delivers Q4 FY 2025 Results With 27% Cloud Growth, RPO Hits $138 Billion
Analyst Take: Oracle closed FY 2025 on a strong note with Q4 FY 2025 results showcasing robust cloud momentum across both infrastructure and applications. The company’s expanding multicloud footprint, aggressive capacity build-out, and rapidly growing backlog signal increasing enterprise adoption for AI workloads. Management raised its FY 2026 outlook, driven by accelerating demand for cloud infrastructure and AI-centric workloads.
Cloud Infrastructure Acceleration Driven by AI Demand and Multicloud Expansion
Oracle’s cloud infrastructure (OCI) business continues to scale rapidly, with IaaS revenue growing 52% YoY in Q4 FY 2025 to $3 billion. OCI consumption revenue surged 62% YoY in Q4 FY 2025, reflecting sustained customer demand across AI training, inference workloads, and hyperscaler partnerships. Management highlighted that OCI’s growth trajectory remains constrained by supply rather than demand, with CEO Safra Catz noting that Oracle is still pushing customer capacity requests into future quarters.
Oracle’s multicloud strategy is also gaining momentum, with database revenue from Amazon, Google, and Azure growing 115% sequentially from Q3 to Q4. The company now has 23 multicloud data centers live with another 47 under construction. Demand is driven by customers seeking deployment flexibility for AI workloads. Oracle’s AI data platform, underpinned by its autonomous database and vector search capabilities, allows clients to use their proprietary data across multiple LLMs securely. Management expects OCI revenue growth to accelerate to over 70% in FY 2026, while multicloud revenue is expected to continue delivering triple-digit growth. This sustained momentum reinforces OCI’s expanding role as a critical platform for enterprise AI adoption.
Strategic SaaS Applications Positioned for Accelerated Growth
Oracle’s SaaS portfolio delivered steady growth, with SaaS revenue rising 12% YoY to $3.7 billion in Q4 FY 2025. Fusion Cloud ERP revenue increased 22% YoY, while NetSuite Cloud ERP grew 18% YoY, reflecting strong enterprise demand for modern AI-enabled back-office offerings across the mid-market and SMB segment.
Management emphasized that Oracle’s SaaS leadership spans ERP, financials, EPM, HCM, supply chain, and manufacturing, supported by the recent launch of more than 100 embedded AI agents. The installed base of strategic back-office SaaS products reached an annualized revenue run rate of $9.3 billion, up 20% YoY. As enterprises migrate from legacy on-premise ERP systems, Oracle’s SaaS offerings are increasingly positioned as the required platform to leverage AI-driven automation and productivity gains fully.
Aggressive Capacity Build-Out to Support Explosive Backlog Growth
Oracle’s remaining performance obligations reached $138 billion at quarter-end, up 41% YoY, driven by strong non-cancelable contract bookings across OCI. Cloud RPO alone grew 56% YoY, now representing nearly 80% of total RPO. Management expects RPO to grow more than 100% in FY 2026 as large hyperscaler and enterprise orders continue to flow in. At present, supply constraints remain the primary limiting factor for OCI growth, with several customers requesting all available capacity across global regions.
Oracle’s capital expenditures surged to $21.2 billion in FY 2025, primarily focused on revenue-generating data center equipment. Capex is expected to exceed $25 billion in FY 2026 to meet growing backlog commitments. Despite elevated investment levels, management indicated that nearly all capacity expansion is backed by firm customer orders, de-risking future revenue conversion. This backlog-driven expansion provides Oracle with high visibility and confidence in sustaining long-term cloud revenue growth.
Guidance and Final Thoughts
Management issued bullish guidance for FY 2026, projecting total revenue growth of at least 16% in constant currency (cc) to $67 billion, an increase of more than $1 billion from the previous guidance. This is driven by total cloud growth exceeding 40% (at cc) and OCI growth surpassing 70%. Non-GAAP EPS for Q1 FY 2026 is expected between $1.46 and $1.50 (+5% to 7% YoY), reflecting continued operating leverage despite near-term margin pressure from rising depreciation tied to capex.
Oracle continues outperforming as one of the strongest cloud infrastructure and AI growth stories. With hyperscaler partnerships now fully scaled across Google, Microsoft, and Amazon, the multicloud database strategy is driving broader adoption. Furthermore, the company’s full-stack approach to delivering AI is reaping benefits, as customers seek out AI features that are embedded and incorporated into product SKUs, providing greater predictability and cost discipline even as AI use expands.
The company’s strategic expansion of AI GPU infrastructure and its Stargate initiative add meaningful upside to OCI’s momentum. Over 70% of revenue is recurring, providing a highly visible growth profile. As part of the Futurum AI Fifteen, Oracle is uniquely positioned to capitalize on surging enterprise AI demand, supported by one of the sector’s most durable cloud growth runways.
See the complete press release on Oracle’s website.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
Other insights from Futurum:
Accelerating Customer Innovation with Oracle Database and Google Cloud – Six Five Media
Oracle Q3 FY 2025 Earnings Show Strong RPO Growth Amid Cloud Expansion
Oracle Bets on AI-Driven Sales and Supply Chain Transformation
Author Information
Keith Kirkpatrick is Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
