Oracle Corporation Q4 FY2025 earnings call

• Safra Catz noted strong Q4 results with double-digit revenue growth, remaining performance obligations at $138 billion, up % from last year. • Cloud applications growth expected to accelerate with over 100 AI agents, strong bookings, and higher renewal rates. • Infrastructure business (OCI) saw exceptional demand, with OCI revenue expected to grow over 7% in FY '26. • Remaining performance obligations at end of Q4 were $138 billion, cloud RPO grew 5% on top of 80% growth last year, representing nearly 80% of total RPO. • CapEx expected to be over $25 billion in FY '26 to meet demand. • Larry Ellison emphasized Oracle's position as a leader in cloud database, applications, and infrastructure, with Oracle 23AI being an AI data platform, and Oracle running everywhere in multi-cloud.

Total cloud revenue (SaaS + IaaS) was up 27% to $6.7 billion in Q4. Total cloud services and license support revenue for the quarter was $ll.7 billion, up 14%. IaaS revenue was $3 billion, up 52% with OCI consumption revenue up 62%. Cloud database services were up 31% with annualized revenue of $2.6 billion. Autonomous Database consumption revenue was up 47%. Application subscription revenues were $5 billion, up 8% with strategic back office SaaS applications having annualized revenues of $9.3 billion, up 20%. Software license revenues were up 8% to $2 billion. For the full year, total company revenue was $S7.4 billion, up 9%. Total cloud services and license support revenue was $44 billion, up 12%, accounting for 77% of total revenue.

• Fiscal year 2O26 revenue guidance raised to over $67 billion, up 16%. • Cloud revenue expected to grow over 4O% in constant currency in FY '26. • Cloud infrastructure revenue expected to grow over O% in FY '26 • Ql '26 revenue guidance: total revenues expected to grow 11%-13% constant currency, 12%-14% in USD; non-GAAP EPS expected to grow 4%-% constant currency, 5%-7% in USD.

• Forward-looking statements subject to risks and uncertainties that may cause actual results to differ. • CapEx needs to be managed to meet demand, and potential issues with supply chain or market conditions could affect growth.

Q: Mark Moerdler asked about AI business durability and profitability.

A:Larry Ellison responded about Oracle's database being the key enabler for enterprises to use their own data with AI models.

Q: John DiFucci asked about Stargate and IaaS growth A:Safra Catz and Larry Ellison discussed Stargate being part of future growth but currently in formation.

Q: Ben Reitzis asked about CapEx A:Safra Catz and Larry Ellison explained CapEx is for data center equipment to meet demand, and demand is insatiable.

Q: Siti Panigrahi asked about cloud database migration A:Safra Catz and Larry Ellison discussed strong database growth and multi-cloud strategy. Q.Raimo Lenschow asked about applications growth A:Safra Catz and Larry Ellison talked about integrated AI cloud applications and picking up users from on-premise transitions.

Q:Brad Zelnick asked about the full stack nature remaining important A Lawrence Ellison explained how full stack technology allows solving problems at different layers for better performance, security, and reliability.