Oracle Corporation (NYSE: ORCL) has announced the results for the second fiscal quarter of 2025, highlighting a 9% year-over-year increase in total revenue, reaching $14.1 billion. This growth was largely driven by the strong performance of cloud services and license support, which generated $10.8 billion, a 12% increase compared to the same quarter last year.
Key Financial Highlights
In terms of profitability, Oracle reported a GAAP operating income of $4.2 billion and a non-GAAP operating income of $6.1 billion, marking a 10% year-over-year increase. Operating margins were also solid, with a 30% under GAAP and a 43% under non-GAAP.
GAAP earnings per share (EPS) rose 24% to $1.10, while non-GAAP EPS increased 10% to $1.47. GAAP net income for the quarter was $3.2 billion, while non-GAAP net income reached $4.2 billion, a 12% increase.
Oracle also highlighted an operating cash flow of $20.3 billion over the last 12 months, with free cash flow of $9.5 billion.
Explosive Cloud Growth Driven by AI
Oracle’s cloud division, which includes Infrastructure as a Service (IaaS) and Software as a Service (SaaS), reported revenues of $5.9 billion, a 24% increase from the previous year. In particular, Cloud Infrastructure (IaaS) generated $2.4 billion, representing a 52% growth.
Safra Catz, Oracle’s CEO, attributed this record growth to the increasing demand for artificial intelligence (AI). “GPU consumption increased 336% this quarter, driven by the need to train advanced AI models. Additionally, we have delivered the largest and fastest AI supercomputer in the world, scaling up to 65,000 NVIDIA H200 GPUs,” Catz noted.
Strategic Partnerships and AI Advancements
Oracle announced a deal with Meta to utilize its AI cloud infrastructure and collaborate on developing AI agents based on Meta’s Llama models. Larry Ellison, Oracle’s chairman and chief technology officer, emphasized how the company’s AI models are being used in high-impact applications such as drug design, genomic analysis, cancer diagnostics, and fraud detection.
“Oracle is leading the future of AI in key sectors, enhancing the speed of scientific discoveries and fostering global economic growth,” Ellison asserted.
Dividends and Future Outlook
The Oracle board declared a quarterly dividend of $0.40 per share, which will be paid on January 23, 2025, to shareholders of record as of January 9, 2025.
With a total of $97 billion in performance obligations, a 49% year-over-year increase, Oracle expects total cloud revenue to exceed $25 billion by the end of the fiscal year.
A Step Towards Cloud Leadership
Oracle continues to position itself as a key player in the cloud market, competing with tech giants like Amazon Web Services and Microsoft Azure. With a strategy focused on faster and more cost-effective infrastructure for AI, Oracle is poised to maintain solid growth in an increasingly competitive sector.
Complete financial results are available on Oracle’s official website, along with a list of recent technical innovations and highlighted customers from the quarter.