Oracle exceeds expectations: Cloud business grows strongly

Oracle presented impressive results for the first fiscal quarter of the 2025 financial year, which even exceeded Wall Street's expectations. As a result, the share price rose by 9 percent in extended trading. According to the annual report, the cloud provider achieved a turnover of 13.31 billion US dollars, of which 2.93 billion dollars remained as net profit. This corresponds to growth of 10 and 7 percent respectively.

In the current quarter, Oracle expects sales growth of 8 to 10 percent, as CEO Safra Catz explained during the conference call. At best, this would correspond to 14.6 billion dollars and would be in line with analysts' expectations of just under 9 percent. In addition, adjusted earnings ("non-GAAP") per share of 1.45 to 1.49 US dollars are expected for the second quarter, i.e. an increase of 7 percent in the best-case scenario.

Strong cloud business

Oracle makes by far the most money with its cloud services and license support. Here, the company generated sales of 10.52 billion dollars, 10 percent more than in the previous year. The cloud and on-premise licensing segment even achieved sales of 870 million US dollars, which corresponds to an increase of 7 percent. Both figures are above expectations.

Cloud infrastructure revenue amounted to 2.2 billion dollars, an increase of 45 percent and an acceleration compared to the previous quarter, in which revenue increased by 42 percent. "I would say that demand is still outstripping supply. But I can live with that", commented Catz.

Strategic expansion

In addition to the financial successes, Oracle announced strategic developments, including the opening of a second cloud region in Saudi Arabia and a new partnership with Amazon Web Services (AWS) to offer its database services on dedicated hardware. This underlines Oracle's ambition to further expand its presence in the global cloud infrastructure.

(vat)