Oracle Announces Fiscal 2025 Fourth Quarter and Fiscal Full Year Financial Results

ORACLE  CORPORATION

Q4 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three Months Ended May 31,

% Increase

% Increase

(Decrease)

2025

% of

2024

% of

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$           11,698

74 %

$           10,234

72 %

14 %

14 %

Cloud license and on-premise license

2,007

13 %

1,838

13 %

9 %

8 %

Hardware

850

5 %

842

6 %

1 %

0 %

Services

1,348

8 %

1,373

9 %

(2 %)

(2 %)

      Total revenues

15,903

100 %

14,287

100 %

11 %

11 %

OPERATING EXPENSES

Cloud services and license support

3,343

21 %

2,522

18 %

33 %

32 %

Hardware

252

2 %

241

2 %

4 %

4 %

Services

1,145

7 %

1,160

8 %

(1 %)

(2 %)

Sales and marketing

2,306

15 %

2,114

15 %

9 %

9 %

Research and development

2,654

17 %

2,226

15 %

19 %

20 %

General and administrative

467

3 %

402

3 %

16 %

16 %

Amortization of intangible assets

544

3 %

743

5 %

(27 %)

(27 %)

Acquisition related and other

4

0 %

101

1 %

(96 %)

(97 %)

Restructuring

79

0 %

92

0 %

(15 %)

(16 %)

      Total operating expenses

10,794

68 %

9,601

67 %

12 %

12 %

OPERATING INCOME

5,109

32 %

4,686

33 %

9 %

7 %

Interest expense

(978)

(6 %)

(878)

(6 %)

11 %

11 %

Non-operating income (expenses), net

20

0 %

(26)

0 %

* 

* 

INCOME BEFORE INCOME TAXES

4,151

26 %

3,782

27 %

10 %

8 %

Provision for income taxes

724

4 %

639

5 %

13 %

11 %

NET INCOME

$              3,427

22 %

$              3,143

22 %

9 %

7 %

EARNINGS PER SHARE:

Basic

$                1.22

$                1.14

Diluted

$                1.19

$                1.11

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,805

2,753

Diluted

2,871

2,834

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2025 compared with the corresponding prior year period increased our operating income by 2 percentage points.

*

Not meaningful

ORACLE  CORPORATION

Q4 FISCAL 2025 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

Three Months Ended May 31,

% Increase
(Decrease)
in US $

% Increase
(Decrease)
in Constant
Currency (2)

2025

2025

2024

2024

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$         15,903

$             -

$         15,903

$         14,287

$              -

$         14,287

11 %

11 %

11 %

11 %

TOTAL OPERATING EXPENSES

$         10,794

$     (1,926)

$           8,868

$           9,601

$     (1,983)

$           7,618

12 %

16 %

12 %

16 %

     Stock-based compensation (3)

1,299

(1,299)

-

1,047

(1,047)

-

24 %

*

24 %

*

     Amortization of intangible assets (4)

544

(544)

-

743

(743)

-

(27 %)

*

(27 %)

*

     Acquisition related and other

4

(4)

-

101

(101)

-

(96 %)

*

(97 %)

*

     Restructuring

79

(79)

-

92

(92)

-

(15 %)

*

(16 %)

*

OPERATING INCOME

$           5,109

$       1,926

$           7,035

$           4,686

$       1,983

$           6,669

9 %

5 %

7 %

4 %

OPERATING MARGIN %

32 %

44 %

33 %

47 %

(67) bp.

(244) bp.

(96) bp.

(266) bp.

INCOME TAX EFFECTS (5)

$              724

$          472

$           1,196

$              639

$          519

$           1,158

13 %

3 %

11 %

2 %

NET INCOME

$           3,427

$       1,454

$           4,881

$           3,143

$       1,464

$           4,607

9 %

6 %

7 %

5 %

DILUTED EARNINGS PER SHARE

$             1.19

$             1.70

$             1.11

$             1.63

8 %

5 %

6 %

3 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,871

-

2,871

2,834

-

2,834

1 %

1 %

1 %

1 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Three Months Ended

Three Months Ended

May 31, 2025

May 31, 2024

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud services and license support

$               150

$        (150)

$                  -

$               140

$        (140)

$                  -

     Hardware

7

(7)

-

6

(6)

-

     Services

52

(52)

-

44

(44)

-

     Sales and marketing

200

(200)

-

178

(178)

-

     Research and development

737

(737)

-

583

(583)

-

     General and administrative

153

(153)

-

96

(96)

-

           Total stock-based compensation

$           1,299

$     (1,299)

$                  -

$           1,047

$     (1,047)

$                  -

(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2025 was as follows:

     Fiscal 2026

$           1,639

     Fiscal 2027

672

     Fiscal 2028

635

     Fiscal 2029

561

     Fiscal 2030

522

     Thereafter

558

           Total intangible assets, net

$           4,587

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 17.5% and 16.9% in the fourth quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.7% and 20.1% in the fourth quarter of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarters of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

*

Not meaningful

ORACLE  CORPORATION

FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Year Ended May 31,

% Increase

% Increase

(Decrease)

2025

% of

2024

% of

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$           44,029

77 %

$           39,383

74 %

12 %

12 %

Cloud license and on-premise license

5,201

9 %

5,081

10 %

2 %

3 %

Hardware

2,936

5 %

3,066

6 %

(4 %)

(4 %)

Services

5,233

9 %

5,431

10 %

(4 %)

(3 %)

      Total revenues

57,399

100 %

52,961

100 %

8 %

9 %

OPERATING EXPENSES

Cloud services and license support

11,569

20 %

9,427

18 %

23 %

23 %

Hardware

782

1 %

891

2 %

(12 %)

(11 %)

Services

4,576

8 %

4,825

9 %

(5 %)

(5 %)

Sales and marketing

8,651

15 %

8,274

15 %

5 %

5 %

Research and development

9,860

17 %

8,915

17 %

11 %

11 %

General and administrative

1,602

3 %

1,548

3 %

3 %

4 %

Amortization of intangible assets

2,307

4 %

3,010

6 %

(23 %)

(23 %)

Acquisition related and other

75

0 %

314

0 %

(76 %)

(76 %)

Restructuring

299

1 %

404

1 %

(26 %)

(26 %)

      Total operating expenses

39,721

69 %

37,608

71 %

6 %

6 %

OPERATING INCOME

17,678

31 %

15,353

29 %

15 %

16 %

Interest expense

(3,578)

(6 %)

(3,514)

(7 %)

2 %

2 %

Non-operating income (expenses), net

60

0 %

(98)

0 %

* 

* 

INCOME BEFORE INCOME TAXES

14,160

25 %

11,741

22 %

21 %

21 %

Provision for income taxes

1,717

3 %

1,274

2 %

35 %

36 %

NET INCOME

$           12,443

22 %

$           10,467

20 %

19 %

20 %

EARNINGS PER SHARE:

Basic

$                4.46

$                3.82

Diluted

$                4.34

$                3.71

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,789

2,744

Diluted

2,866

2,823

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2025 compared with the corresponding prior year period decreased each of our total revenues and operating income by 1 percentage point.

*

Not meaningful

ORACLE  CORPORATION

FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

Year Ended May 31,

% Increase
(Decrease)
in US $

% Increase
(Decrease) in
Constant
Currency (2)

2025

2025

2024

2024

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$         57,399

$             -

$         57,399

$         52,961

$             -

$         52,961

8 %

8 %

9 %

9 %

TOTAL OPERATING EXPENSES

$         39,721

$     (7,355)

$         32,366

$         37,608

$     (7,702)

$         29,906

6 %

8 %

6 %

9 %

     Stock-based compensation (3)

4,674

(4,674)

-

3,974

(3,974)

-

18 %

*

18 %

*

     Amortization of intangible assets (4)

2,307

(2,307)

-

3,010

(3,010)

-

(23 %)

*

(23 %)

*

     Acquisition related and other

75

(75)

-

314

(314)

-

(76 %)

*

(76 %)

*

     Restructuring

299

(299)

-

404

(404)

-

(26 %)

*

(26 %)

*

OPERATING INCOME

$         17,678

$       7,355

$         25,033

$         15,353

$       7,702

$         23,055

15 %

9 %

16 %

9 %

OPERATING MARGIN %

31 %

44 %

29 %

44 %

181 bp.

8 bp.

182 bp.

4 bp.

INCOME TAX EFFECTS (5)

$           1,717

$       2,514

$           4,231

$           1,274

$       2,459

$           3,733

35 %

13 %

36 %

14 %

NET INCOME

$         12,443

$       4,841

$         17,284

$         10,467

$       5,243

$         15,710

19 %

10 %

20 %

11 %

DILUTED EARNINGS PER SHARE

$             4.34

$             6.03

$             3.71

$             5.56

17 %

8 %

18 %

9 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,866

-

2,866

2,823

-

2,823

2 %

2 %

2 %

2 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Year Ended

Year Ended

May 31, 2025

May 31, 2024

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud services and license support

$               609

$        (609)

$                  -

$               525

$        (525)

$                  -

     Hardware

29

(29)

-

23

(23)

-

     Services

202

(202)

-

167

(167)

-

     Sales and marketing

757

(757)

-

667

(667)

-

     Research and development

2,638