Oracle (ORCL) Q1 2025 Earnings Report

oracle Shares rose 9% in extended trading on Monday after the database software provider reported fiscal first-quarter results that beat Wall Street estimates.

Here’s how the company performed compared to the LSEG consensus:

• Earnings per share: $1.39 adjusted vs. $1.32 expected
• Revenue: $13.31 billion compared to expected $13.23 billion

Oracle's revenue rose 8 percent from the year-ago period ($12.45 billion). Net income rose to $2.93 billion, or $1.03 per share, from $2.42 billion, or 86 cents per share, in the year-ago quarter.

With an after-hours price of about $153, Oracle is on track to hit a record on Tuesday. The stock's previous highest close was $145.03 in July. Before the report, Oracle had risen about 34 percent so far this year, compared with the S&P 500's 15 percent gain.

For the current quarter, Oracle expects revenue growth of 8 to 10%, said CEO Safra Catz in the conference call. According to LSEG, analysts had expected growth of just under 9%. The company expects adjusted earnings per share of $1.45 to $1.49 for the second quarter. Analysts had expected earnings of $1.47 per share.

The company said its cloud services and license support business generated revenue of $10.52 billion, up 10 percent from the previous year and above the Street Account consensus of $10.47 billion.

Oracle's cloud and on-premises licensing segment reported revenue of $870 million, up 7% and exceeding the $757.6 billion forecast by StreetAccount.

Cloud infrastructure revenue was $2.2 billion, up 45 percent, an acceleration from the previous quarter, when revenue grew 42 percent.

“I would say that demand still exceeds supply. But I can live with that,” Catz said in the phone call.

Oracle is currently designing a data center that will consume more than a gigawatt of power and will feature three modular nuclear reactors, Larry Ellison, Oracle co-founder, chairman and chief technology officer, said on the conference call.

Over time, Ellison says, Oracle could operate 2,000 data centers instead of 162 today. But not all of them require enormous amounts of electricity.

“The smallest ones are about 150 kilowatts,” Ellison said. “And we'll go down to 50 kilowatts.”

During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and said its database software will be available there. Google's public cloud.

In a separate statement on Monday, Oracle announced that it would partner with the cloud infrastructure leader. Amazon Web Services to enable its database services on dedicated hardware.