Oracle (ORCL) Q1 2025 Earnings Report

Oracle Shares rose 13% on Tuesday and are on track to close at a record after the database software provider reported fiscal first-quarter results that beat Wall Street estimates.

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

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

Oracle’s revenue rose 8 percent from $12.45 billion a year earlier, according to a statement. Net income rose to $2.93 billion, or $1.03 a share, from $2.42 billion, or 86 cents a share, a year earlier.

The stock’s highest closing price so far was $145.03 in July. Before the report, Oracle was up about 34% so far this year, compared with the S&P 500’s 15% gain.

For the current quarter, Oracle expects revenue growth of 8% to 10%, Chief Executive Safra Catz said on the earnings call. Analysts had expected growth of about 9%, according to LSEG. The company expects second-quarter fiscal adjusted earnings per share of $1.45 to $1.49. Analysts had expected earnings of $1.47 per share.

The company said its cloud services and licensing support business generated $10.52 billion in revenue, up 10% from the prior year and higher than the StreetAccount consensus of $10.47 billion.

Oracle’s on-premises and cloud licensing segment had revenue of $870 million, up 7% and above the StreetAccount consensus of $757.6 billion.

Cloud infrastructure revenues rose 45% to $2.2 billion. This is an acceleration from the previous quarter, when revenues increased 42%.

“I will say that demand continues to outstrip supply, but I can live with that,” Catz said on the call.

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

Over time, Oracle could operate 2,000 data centers, up from 162 today, Ellison said. But not all of them require huge amounts of energy.

“The smallest ones are about 150 kilowatts,” Ellison said. “And we’re going to go up 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 through from google public cloud.

In a separate statement on Monday, Oracle said it would partner with the cloud infrastructure market leader. Amazon Web services to enable your database services on dedicated hardware.