Oracle (NYSE: ORCL) Q4 FY25 results: Cloud revenue climbs 27%, stock hits all-time high

Oracle Corporation (NYSE: ORCL) closed out fiscal year 2025 with a strong fourth quarter, posting 11% year-over-year revenue growth to USD 15.9 billion and driving its stock to an all-time high of USD 200.89. The American cloud infrastructure and enterprise software developer reported cloud revenue of USD 6.7 billion for the quarter, up 27% from the same period last year. This includes USD 3.0 billion from Oracle Cloud Infrastructure (OCI), which surged 52% year-over-year, and USD 3.7 billion from cloud applications such as Fusion ERP and NetSuite.

GAAP net income for the quarter stood at USD 3.4 billion, while non-GAAP net income reached USD 4.9 billion. Earnings per share came in at USD 1.19 on a GAAP basis and USD 1.70 on a non-GAAP basis. Operating income under GAAP rose to USD 5.1 billion, and Oracle ended the quarter with remaining performance obligations (RPO) up 41% to USD 138 billion—a strong signal of future recurring revenue.

What was Oracle’s full-year FY25 financial performance?

For the full fiscal year ending May 31, 2025, Oracle’s total revenue increased 8% to USD 57.4 billion, with cloud services and license support contributing USD 44.0 billion, up 12% annually. GAAP net income rose to USD 12.4 billion, while non-GAAP net income reached USD 17.3 billion. Oracle also improved its operating cash flow to USD 20.8 billion, a 12% increase from FY24.

Fusion Cloud ERP and NetSuite Cloud ERP each contributed USD 1.0 billion in Q4 revenue, rising 22% and 18%, respectively. The company maintained healthy margins, reporting a 32% GAAP operating margin and 44% on a non-GAAP basis for Q4. Fiscal year R&D investment grew 11% to nearly USD 10 billion, reflecting continued focus on AI, infrastructure, and database innovation.

How Oracle Cloud Infrastructure and multicloud fueled growth

A key catalyst behind Oracle’s earnings beat was the rapid expansion of its infrastructure cloud business. Chairman and Chief Technology Officer Larry Ellison highlighted a 115% quarter-over-quarter spike in multicloud database revenue through integrations with Amazon Web Services, Microsoft Azure, and Google Cloud. Oracle currently operates 23 live multicloud datacenters and plans to build 47 more over the next 12 months.

Oracle Cloud@Customer, its hybrid solution delivering dedicated cloud environments within customer premises, also grew 104% year-over-year. With 29 such installations active and 30 more in progress for FY26, the demand for localized, compliant cloud environments is accelerating.

OCI’s consumption-based revenue rose 62% in Q4. Executives expect this figure to grow even faster in fiscal 2026 as more large enterprises migrate core workloads to Oracle’s infrastructure, enticed by its security, performance, and intercloud portability.

What are analysts saying about Oracle’s FY26 guidance?

Oracle’s forward outlook has received a bullish response from analysts and institutional investors. CEO Safra Catz projected that total cloud growth—encompassing both applications and infrastructure—will exceed 40% in FY26, compared to 24% in FY25. Oracle Cloud Infrastructure alone is expected to grow over 70% year-over-year, with RPO growth likely to surpass 100%.

Deutsche Bank raised its price target to USD 240 with a “Buy” rating, while Bank of America set a neutral target of USD 220. Citi maintained a neutral stance with a target of USD 186, and JPMorgan pegged it at USD 185. The consensus recommendation remains a “Moderate Buy,” with many analysts citing Oracle’s growing multicloud revenue stream and cloud infrastructure visibility as key positives.

Oracle stock performance and institutional sentiment in June 2025

Following the Q4 results and guidance, Oracle’s share price jumped nearly 13% in a single session, closing at USD 200.89 on June 12—its highest level ever. Year-to-date, the stock has gained approximately 7%, with over 44% upside from April 2025 lows. Oracle now trades near the top of its 52-week range of USD 118.86 to USD 200.89.

Institutional interest remains strong, with approximately 42% of shares held by large funds. Fund flow indicators show a clear accumulation trend, with reduced short interest—now below 1% of float and down nearly 35% month-over-month. This suggests that institutional investors are positioning for continued upside.

Retail investor sentiment, however, remains mixed. Only about 2% of TipRanks-tracked retail portfolios hold ORCL, and sentiment across online communities is lagging institutional enthusiasm. Social sentiment metrics rate Oracle’s stock at 89 out of 100, indicating rising traction among forums but with cautious optimism.

Buy, hold or sell? Portfolio strategy insights for Oracle in FY26

For long-term investors seeking exposure to the cloud infrastructure sector, Oracle offers a compelling value proposition anchored in strong RPO growth, AI-centric infrastructure, and expanding multicloud deployment. With OCI and Cloud@Customer gaining ground in regulated and hybrid cloud environments, Oracle stands as a differentiated competitor to Amazon Web Services and Microsoft Azure.

Analysts recommending a “Buy” point to potential upside toward USD 220–240, assuming OCI growth and capex execution stay on track. Meanwhile, “Hold” strategies may be appropriate for conservative portfolios, as margin compression from heavy FY26 capital expenditures—USD 21.2 billion in FY25 alone—could pressure near-term free cash flow.

Short-term traders may consider trimming positions after the recent rally, particularly if technical indicators signal overbought conditions or if macro headwinds increase volatility. However, any pullback may present a buying opportunity given Oracle’s secular growth position in enterprise AI and infrastructure modernization.

How Oracle’s capex strategy may affect free cash flow and margins

Oracle’s aggressive infrastructure investment strategy has led to record capital expenditures. In FY25, Oracle spent over USD 21.2 billion on infrastructure, up from USD 6.9 billion in the prior year. This spend is directly tied to the company’s plan to scale cloud data centers and support cloud-native applications, AI training workloads, and intercloud connections.

While these investments are expected to boost long-term revenues and RPOs, they are also weighing on near-term free cash flow. Oracle’s free cash flow turned slightly negative in Q4, falling to negative USD 394 million. This compares to USD 5.8 billion in the year-ago period. Management views this as temporary, projecting stronger ROI from cloud consumption revenue by FY27.

Operating cash flow, however, remains robust and covers dividend payouts and selective stock buybacks. Oracle declared a quarterly dividend of USD 0.50 per share, payable on July 24 to shareholders of record as of July 10.

What to expect from Oracle’s AI and industry-specific cloud offerings

While Oracle executives did not extensively detail their AI strategy during the earnings call, analysts anticipate more announcements in FY26 around verticalized AI use cases, including AI-native tools within Fusion ERP and NetSuite. Oracle is also expected to integrate AI model hosting and inferencing capabilities directly into OCI, potentially capturing enterprise demand for private AI deployments.

Given growing demand for industry-specific cloud stacks—particularly in healthcare, finance, and government—Oracle’s ability to bundle AI, analytics, and compliance features may offer further differentiation against hyperscaler rivals.

Oracle’s multicloud capability, which allows workloads to interoperate across OCI, AWS, Azure, and Google Cloud, is becoming a central theme. This strategy could position Oracle as a neutral orchestrator in the increasingly hybrid, multicloud enterprise environment.