Oracle Announces Fiscal 2025 Third Quarter Financial Results

Q3 Remaining Performance Obligations $130 billion, up 62% in USD & up 63% in constant currency Q3 GAAP Earnings per Share up 20% to $1.02, Non-GAAP Earnings per Share up 4% to $1.47 Q3 Total Revenue $14.1 billion, up 6% in USD and up 8% in constant currency Q3 Cloud Revenue (IaaS plus SaaS) $6.2 billion, up 23% in USD and up 25% in constant currency Q3 Cloud Infrastructure (IaaS) Revenue $2.7 billion, up 49% in USD and up 51% in constant currency Q3 Cloud Application (SaaS) Revenue $3.6 billion, up 9% in USD and up 10% in constant currency Q3 Fusion Cloud ERP (SaaS) Revenue $0.9 billion, up 16% in USD and up 18% in constant currency Q3 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 16% in USD and up 17% in constant currency , /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2025 Q3 results. Total Remaining Performance Obligations were up 62% year-over-year in USD, and up 63% in constant currency, to $130 billion. Total quarterly revenues were up 6% year-over-year in USD, and up 8% in constant currency, to $14.1 billion. Cloud services and license support revenues were up 10% year-over-year in USD, and up 12% in constant currency, to $11.0 billion. Cloud license and on-premise license revenues were down 10% in USD and down 8% in constant currency, to $1.1 billion. Q3 GAAP operating income was $4.4 billion. Non-GAAP operating income was $6.2 billion, up 7% in USD, and up 9% in constant currency. GAAP operating margin was 31%, and non-GAAP operating margin was 44%. GAAP net income was $2.9 billion, up 22% in USD, and up 27% in constant currency. Non-GAAP net income was $4.2 billion, up 6% in USD, and up 9% in constant currency. Q3 GAAP earnings per share was $1.02, up 20% in USD and up 25% in constant currency, while non-GAAP earnings per share was $1.47, up 4% in USD, and up 7% in constant currency. Short-term deferred revenues were $9.0 billion. Over the last twelve months, operating cash flow was $20.7 billion and free cash flow was $5.8 billion. "Oracle signed sales contracts for more than $48 billion in Q3," said Oracle CEO, Safra Catz. "This record sales number pushed our Remaining Performance Obligations, or RPO, up 63% to over $130 billion. We have now signed cloud agreements with several world leading technology companies including: OpenAI, xAI, Meta, NVIDIA and AMD. We expect that our huge $130 billion sales backlog will help drive a 15% increase in Oracle's overall revenue in our next fiscal year beginning this June. And we expect RPO to continue to grow rapidly—as we look forward to signing our first Stargate contract—yet another big opportunity for Oracle to expand both its AI training and AI inferencing businesses in the near future." "We are on schedule to double our data center capacity this calendar year," said Oracle Chairman and CTO, Larry Ellison. "Customer demand is at record levels. Our Database MultiCloud revenue from Microsoft, Google and Amazon is up 92% in the last three months alone. GPU consumption for AI training grew 244% in the last 12 months. And we are seeing enormous demand for AI inferencing on our customers' private data. So, we are connecting OpenAI ChatGPT, xAI Grok and Meta Llama directly to Version 23ai of the Oracle Database with advanced vector capabilities. This new product, called the Oracle AI Data Platform, makes it easy for customers to use any of the world's leading AI models to analyze all of their private data—while keeping all their data private and secure." Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock, reflecting a 25% increase over the current quarterly dividend of $0.40. Larry Ellison, Oracle's Chairman of the Board of Directors, Chief Technology Officer, and largest stockholder, did not participate in the deliberation or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on April 10, 2025, with a payment date of April 23, 2025. A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/. A list of recent technical innovations and announcements is available at www.oracle.com/news/. To learn what industry analysts have been saying about Oracle's products and services see www.oracle.com/corporate/analyst-reports/. Earnings Conference Call and WebcastOracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/. About OracleOracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com. TrademarksOracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. "Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including the expectations for converting RPOs to revenue, future growth in RPO and data center capacity, the timing of signing the Stargate contract, and future demand for AI inferencing are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; our ability to secure data center capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 10, 2025. Oracle undertakes no duty to update any statement in light of new information or future events. ORACLE CORPORATION Q3 FISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Three Months Ended % Increase % Increase (Decrease) February 28,2025 % of February 29,2024 % of (Decrease) in Constant Revenues Revenues in US $ Currency (1) REVENUES Cloud services and license support $ 11,007 78 % $ 9,963 75 % 10 % 12 % Cloud license and on-premise license 1,129 8 % 1,256 9 % (10 %) (8 %) Hardware 703 5 % 754 6 % (7 %) (5 %) Services 1,291 9 % 1,307 10 % (1 %) 1 % Total revenues 14,130 100 % 13,280 100 % 6 % 8 % OPERATING EXPENSES Cloud services and license support 2,882 20 % 2,452 18 % 18 % 19 % Hardware 197 1 % 217 2 % (9 %) (7 %) Services 1,116 8 % 1,200 9 % (7 %) (5 %) Sales and marketing 2,119 15 % 2,042 15 % 4 % 6 % Research and development 2,429 17 % 2,248 17 % 8 % 9 % General and administrative 390 3 % 377 3 % 3 % 5 % Amortization of intangible assets 548 4 % 749 6 % (27 %) (27 %) Acquisition related and other 28 0 % 155 1 % (82 %) (82 %) Restructuring 63 1 % 90 1 % (30 %) (28 %) Total operating expenses 9,772 69 % 9,530 72 % 3 % 4 % OPERATING INCOME 4,358 31 % 3,750 28 % 16 % 20 % Interest expense (892) (6 %) (876) (6 %) 2 % 2 % Non-operating expenses, net (18) 0 % (9) 0 % 101 % 91 % INCOME BEFORE INCOME TAXES 3,448 25 % 2,865 22 % 20 % 25 % Provision for income taxes 512 4 % 464 4 % 10 % 15 % NET INCOME $ 2,936 21 % $ 2,401 18 % 22 % 27 % EARNINGS PER SHARE: Basic $ 1.05 $ 0.87 Diluted $ 1.02 $ 0.85 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,799 2,748 Diluted 2,874 2,819 (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 February 28, 2025 compared with the corresponding prior year period decreased our total revenues by 2 percentage points, total operating expenses by 1 percentage point and operating income by 4 percentage points. ORACLE CORPORATION Q3 FISCAL 2025 FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Three Months Ended % Increase (Decrease)in US $ % Increase (Decrease) in Constant Currency (2) February 28,2025 February 28,2025 February 29,2024 February 29,2024 GAAP Non-GAAP GAAP Non-GAAP GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP TOTAL REVENUES $ 14,130 $ - $ 14,130 $ 13,280 $ - $ 13,280 6 % 6 % 8 % 8 % TOTAL OPERATING EXPENSES $ 9,772 $ (1,837) $ 7,935 $ 9,530 $ (2,042) $ 7,488 3 % 6 % 4 % 8 % Stock-based compensation (3) 1,198 (1,198) - 1,048 (1,048) - 14 % * 14 % * Amortization of intangible assets (4) 548 (548) - 749 (749) - (27 %) * (27 %) * Acquisition related and other 28 (28) - 155 (155) - (82 %) * (82 %) * Restructuring 63 (63) - 90 (90) - (30 %) * (28 %) * OPERATING INCOME $ 4,358 $ 1,837 $ 6,195 $ 3,750 $ 2,042 $ 5,792 16 % 7 % 20 % 9 % OPERATING MARGIN % 31 % 44 % 28 % 44 % 261 bp. 23 bp. 294 bp. 34 bp. INCOME TAX EFFECTS (5) $ 512 $ 542 $ 1,054 $ 464 $ 461 $ 925 10 % 14 % 15 % 17 % NET INCOME $ 2,936 $ 1,295 $ 4,231 $ 2,401 $ 1,581 $ 3,982 22 % 6 % 27 % 9 % DILUTED EARNINGS PER SHARE $ 1.02 $ 1.47 $ 0.85 $ 1.41 20 % 4 % 25 % 7 % DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2,874 - 2,874 2,819 - 2,819 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: Three Months Ended Three Months Ended February 28, 2025 February 29, 2024 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP Cloud services and license support $ 160 $ (160) $ - $ 138 $ (138) $ - Hardware 8 (8) - 6 (6) - Services 54 (54) - 45 (45) - Sales and marketing 200 (200) - 179 (179) - Research and development 675 (675) - 584 (584) - General and administrative 101 (101) - 96 (96) - Total stock-based compensation $ 1,198 $ (1,198) $ - $ 1,048 $ (1,048) $ - (4) Estimated future annual amortization expense related to intangible assets as of February 28, 2025 was as follows: Remainder of fiscal 2025 $ 544 Fiscal 2026 1,639 Fiscal 2027 672 Fiscal 2028 635 Fiscal 2029 561 Fiscal 2030 522 Thereafter 558 Total intangible assets, net $ 5,131 (5) Income tax effects were calculated reflecting an effective GAAP tax rate of 14.9% and 16.2% in the third quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.9% and 18.9% in the third quarter of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the third 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 Q3 FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Nine Months Ended % Increase % Increase (Decrease) February 28,2025 % of February 29,2024 % of (Decrease) in Constant Revenues Revenues in US $ Currency (1) REVENUES Cloud services and license support $ 32,331 78 % $ 29,149 75 % 11 % 12 % Cloud license and on-premise license 3,194 8 % 3,243 8 % (2 %) 0 % Hardware 2,086 5 % 2,224 6 % (6 %) (5 %) Services 3,885 9 % 4,058 11 % (4 %) (3 %) Total revenues 41,496 100 % 38,674 100 % 7 % 8 % OPERATING EXPENSES Cloud services and license support 8,226 20 % 6,905 18 % 19 % 20 % Hardware 530 1 % 649 2 % (18 %) (17 %) Services 3,430 8 % 3,665 9 % (6 %) (6 %) Sales and marketing 6,345 15 % 6,161 16 % 3 % 4 % Research and development 7,206 18 % 6,689 17 % 8 % 8 % General and administrative 1,135 3 % 1,146 3 % (1 %) 0 % Amortization of intangible assets 1,763 4 % 2,267 6 % (22 %) (22 %) Acquisition related and other 72 0 % 214 0 % (66 %) (66 %) Restructuring 220 1 % 311 1 % (29 %) (29 %) Total operating expenses 28,927 70 % 28,007 72 % 3 % 4 % OPERATING INCOME 12,569 30 % 10,667 28 % 18 % 19 % Interest expense (2,600) (6 %) (2,636) (7 %) (1 %) (1 %) Non-operating income (expenses), net 39 0 % (72) 0 % * * INCOME BEFORE INCOME TAXES 10,008 24 % 7,959 21 % 26 % 28 % Provision for income taxes 992 2 % 636 2 % 56 % 59 % NET INCOME $ 9,016 22 % $ 7,323 19 % 23 % 25 % EARNINGS PER SHARE: Basic $ 3.24 $ 2.67 Diluted $ 3.15 $ 2.60 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,783 2,741 Diluted 2,865 2,820 (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 nine months ended February 28, 2025 compared with the corresponding prior year period decreased each of our total revenues, total operating expenses and operating income by 1 percentage point. * Not meaningful ORACLE CORPORATION Q3 FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Nine Months Ended % Increase (Decrease)in US $ % Increase (Decrease) in Constant Currency (2) February 28,2025 February 28,2025 February 29,2024 February 29,2024 GAAP Non-GAAP GAAP Non-GAAP GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP TOTAL REVENUES $ 41,496 $ - $ 41,496 $ 38,674 $ - $ 38,674 7 % 7 % 8 % 8 % TOTAL OPERATING EXPENSES $ 28,927 $ (5,429) $ 23,498 $ 28,007 $ (5,719) $ 22,288 3 % 5 % 4 % 6 % Stock-based compensation (3) 3,374 (3,374) - 2,927 (2,927) - 15 % * 15 % * Amortization of intangible assets (4) 1,763 (1,763) - 2,267 (2,267) - (22 %) * (22 %) * Acquisition related and other 72 (72) - 214 (214) - (66 %) * (66 %) * Restructuring 220 (220) - 311 (311) - (29 %) * (29 %) * OPERATING INCOME $ 12,569 $ 5,429 $ 17,998 $ 10,667 $ 5,719 $ 16,386 18 % 10 % 19 % 11 % OPERATING MARGIN % 30 % 43 % 28 % 42 % 271 bp. 100 bp. 284 bp. 104 bp. INCOME TAX EFFECTS (5) $ 992 $ 2,042 $ 3,034 $ 636 $ 1,939 $ 2,575 56 % 18 % 59 % 19 % NET INCOME $ 9,016 $ 3,387 $ 12,403 $ 7,323 $ 3,780 $ 11,103 23 % 12 % 25 % 13 % DILUTED EARNINGS PER SHARE $ 3.15 $ 4.33 $ 2.60 $ 3.94 21 % 10 % 23 % 11 % DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2,865 - 2,865 2,820 - 2,820 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: Nine Months Ended Nine Months Ended February 28, 2025 February 29, 2024 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP Cloud services and license support $ 459 $ (459) $ - $ 386 $ (386) $ - Hardware 21 (21) - 17 (17) - Services 150 (150) - 123 (123) - Sales and marketing 556 (556) - 488 (488) - Research and development 1,902 (1,902) - 1,642 (1,642) - General and administrative 286 (286) - 271 (271) - Total stock-based compensation $ 3,374 $ (3,374) $ - $ 2,927 $ (2,927) $ - (4) Estimated future annual amortization expense related to intangible assets as of February 28, 2025 was as follows: Remainder of fiscal 2025 $ 544 Fiscal 2026 1,639 Fiscal 2027 672 Fiscal 2028 635 Fiscal 2029 561 Fiscal 2030 522 Thereafter 558 Total intangible assets, net $ 5,131 (5) Income tax effects were calculated reflecting an effective GAAP tax rate of 9.9% and 8.0% in the first nine months of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.7% and 18.8% in the first nine months of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first nine months 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 Q3 FISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) February 28,2025 May 31,2024 ASSETS Current Assets: Cash and cash equivalents $ 17,406 $ 10,454 Marketable securities 417 207 Trade receivables, net 8,051 7,874 Prepaid expenses and other current assets 4,242 4,019 Total Current Assets 30,116 22,554 Non-Current Assets: Property, plant and equipment, net 31,970 21,536 Intangible assets, net 5,131 6,890 Goodwill, net 62,171 62,230 Deferred tax assets 11,799 12,273 Other non-current assets 20,191 15,493 Total Non-Current Assets 131,262 118,422 TOTAL ASSETS $ 161,378 $ 140,976 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable and other borrowings, current $ 8,167 $ 10,605 Accounts payable 2,423 2,357 Accrued compensation and related benefits 1,839 1,916 Deferred revenues 9,019 9,313 Other current liabilities 8,175 7,353 Total Current Liabilities 29,623 31,544 Non-Current Liabilities: Notes payable and other borrowings, non-current 88,109 76,264 Income taxes payable 9,813 10,817 Deferred tax liabilities 2,208 3,692 Other non-current liabilities 14,364 9,420 Total Non-Current Liabilities 114,494 100,193 Stockholders' Equity 17,261 9,239 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 161,378 $ 140,976 ORACLE CORPORATION Q3 FISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Nine Months Ended February 28,2025 February 29,2024 Cash Flows From Operating Activities: Net income $ 9,016 $ 7,323 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 2,715 2,318 Amortization of intangible assets 1,763 2,267 Deferred income taxes (1,097) (1,755) Stock-based compensation 3,374 2,927 Other, net 422 631 Changes in operating assets and liabilities: Increase in trade receivables, net (312) (409) Decrease in prepaid expenses and other assets 603 457 Decrease in accounts payable and other liabilities (633) (682) Decrease in income taxes payable (1,222) (788) Increase in deferred revenues 35 303 Net cash provided by operating activities 14,664 12,592 Cash Flows From Investing Activities: Purchases of marketable securities and other investments (838) (674) Proceeds from sales and maturities of marketable securities and other investments 444 207 Acquisitions, net of cash acquired - (59) Capital expenditures (12,135) (4,068) Net cash used for investing activities (12,529) (4,594) Cash Flows From Financing Activities: Payments for repurchases of common stock (450) (1,050) Proceeds from issuances of common stock 520 454 Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (900) (1,865) Payments of dividends to stockholders (3,340) (3,289) (Repayments of) proceeds from issuances of commercial paper, net (396) 936 Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs 19,548 - Repayments of senior notes and term loan credit agreements (9,771) (3,500) Other, net (299) 34 Net cash provided by (used for) financing activities 4,912 (8,280) Effect of exchange rate changes on cash and cash equivalents (95) (2) Net increase (decrease) in cash and cash equivalents 6,952 (284) Cash and cash equivalents at beginning of period 10,454 9,765 Cash and cash equivalents at end of period $ 17,406 $ 9,481 ORACLE CORPORATION Q3 FISCAL 2025 FINANCIAL RESULTS FREE CASH FLOW - TRAILING 4-QUARTERS (1) ($ in millions) Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP Operating Cash Flow $ 17,745 $ 17,039 $ 18,239 $ 18,673 $ 19,126 $ 20,287 $ 20,745 Capital Expenditures (8,290) (6,935) (5,981) (6,866) (7,855) (10,745) (14,933) Free Cash Flow $ 9,455 $ 10,104 $ 12,258 $ 11,807 $ 11,271 $ 9,542 $ 5,812 Operating Cash Flow % Growth over prior year 68 % 13 % 18 % 9 % 8 % 19 % 14 % Free Cash Flow % Growth over prior year 76 % 20 % 68 % 39 % 19 % (6 %) (53 %) GAAP Net Income $ 9,375 $ 10,137 $ 10,642 $ 10,467 $ 10,976 $ 11,624 $ 12,160 Operating Cash Flow as a % of Net Income 189 % 168 % 171 % 178 % 174 % 175 % 171 % Free Cash Flow as a % of Net Income 101 % 100 % 115 % 113 % 103 % 82 % 48 % (1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. ORACLE CORPORATION Q3 FISCAL 2025 FINANCIAL RESULTS SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) ($ in millions) Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL REVENUES BY OFFERINGS Cloud services $ 4,635 $ 4,775 $ 5,054 $ 5,311 $ 19,774 $ 5,623 $ 5,937 $ 6,210 $ 17,769 License support 4,912 4,864 4,909 4,923 19,609 4,896 4,869 4,797 14,562 Cloud services and license support 9,547 9,639 9,963 10,234 39,383 10,519 10,806 11,007 32,331 Cloud license and on-premise license 809 1,178 1,256 1,838 5,081 870 1,195 1,129 3,194 Hardware 714 756 754 842 3,066 655 728 703 2,086 Services 1,383 1,368 1,307 1,373 5,431 1,263 1,330 1,291 3,885 Total revenues $ 12,453 $ 12,941 $ 13,280 $ 14,287 $ 52,961 $ 13,307 $ 14,059 $ 14,130 $ 41,496 AS REPORTED REVENUE GROWTH RATES Cloud services 30 % 25 % 25 % 20 % 25 % 21 % 24 % 23 % 23 % License support 2 % 2 % 1 % 0 % 1 % 0 % 0 % (2 %) (1 %) Cloud services and license support 13 % 12 % 12 % 9 % 12 % 10 % 12 % 10 % 11 % Cloud license and on-premise license (10 %) (18 %) (3 %) (15 %) (12 %) 7 % 1 % (10 %) (2 %) Hardware (6 %) (11 %) (7 %) (1 %) (6 %) (8 %) (4 %) (7 %) (6 %) Services 2 % (2 %) (5 %) (6 %) (3 %) (9 %) (3 %) (1 %) (4 %) Total revenues 9 % 5 % 7 % 3 % 6 % 7 % 9 % 6 % 7 % CONSTANT CURRENCY REVENUE GROWTH RATES (2) Cloud services 29 % 24 % 24 % 20 % 24 % 22 % 24 % 25 % 24 % License support 0 % 0 % 1 % 1 % 0 % 0 % 0 % 0 % 0 % Cloud services and license support 12 % 11 % 11 % 10 % 11 % 11 % 12 % 12 % 12 % Cloud license and on-premise license (11 %) (19 %) (3 %) (14 %) (12 %) 8 % 3 % (8 %) 0 % Hardware (8 %) (12 %) (7 %) 0 % (7 %) (8 %) (3 %) (5 %) (5 %) Services 1 % (3 %) (5 %) (6 %) (3 %) (8 %) (3 %) 1 % (3 %) Total revenues 8 % 4 % 7 % 4 % 6 % 8 % 9 % 8 % 8 % CLOUD SERVICES AND LICENSE SUPPORT REVENUES BY ECOSYSTEM Applications cloud services and license support $ 4,471 $ 4,474 $ 4,584 $ 4,642 $ 18,172 $ 4,769 $ 4,784 $ 4,811 $ 14,363 Infrastructure cloud services and license support 5,076 5,165 5,379 5,592 21,211 5,750 6,022 6,196 17,968 Total cloud services and license support revenues $ 9,547 $ 9,639 $ 9,963 $ 10,234 $ 39,383 $ 10,519 $ 10,806 $ 11,007 $ 32,331 AS REPORTED REVENUE GROWTH RATES Applications cloud services and license support 11 % 10 % 10 % 6 % 9 % 7 % 7 % 5 % 6 % Infrastructure cloud services and license support 15 % 14 % 13 % 12 % 14 % 13 % 17 % 15 % 15 % Total cloud services and license support revenues 13 % 12 % 12 % 9 % 12 % 10 % 12 % 10 % 11 % CONSTANT CURRENCY REVENUE GROWTH RATES (2) Applications cloud services and license support 11 % 9 % 10 % 6 % 9 % 7 % 7 % 6 % 7 % Infrastructure cloud services and license support 14 % 12 % 13 % 13 % 13 % 14 % 17 % 18 % 16 % Total cloud services and license support revenues 12 % 11 % 11 % 10 % 11 % 11 % 12 % 12 % 12 % GEOGRAPHIC REVENUES Americas $ 7,841 $ 8,067 $ 8,270 $ 8,945 $ 33,122 $ 8,372 $ 8,933 $ 9,000 $ 26,305 Europe/Middle East/Africa 3,005 3,170 3,316 3,539 13,030 3,228 3,381 3,421 10,029 Asia Pacific 1,607 1,704 1,694 1,803 6,809 1,707 1,745 1,709 5,162 Total revenues $ 12,453 $ 12,941 $ 13,280 $ 14,287 $ 52,961 $ 13,307 $ 14,059 $ 14,130 $ 41,496 (1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding. (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 and 2023 for the fiscal 2025 and fiscal 2024 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods. APPENDIX A ORACLE CORPORATIONQ3 FISCAL 2025 FINANCIAL RESULTSEXPLANATION OF NON-GAAP MEASURES To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial 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. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects: Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods. Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives. 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Oracle Announces Fiscal 2025 Third Quarter Financial Results

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