- Oracle’s adjusted revenue for Q1 was $14.93 billion, a 12% year-over-year increase, closely aligning with the estimate of $15.03 billion.
- In constant currency terms, revenue rose by 11%, while analysts expected a slightly higher increase of 12.9%.
- The adjusted earnings per share (EPS) hit $1.47, up from $1.39 year-over-year, just missing the estimate of $1.48.
- Cloud revenue combining Infrastructure as a Service (IaaS) and Software as a Service (SaaS) reached $7.2 billion, below the estimate of $7.31 billion.
- Cloud revenue experienced a 27% increase in constant currency, below the projected 29.8% growth.
- Cloud Infrastructure (IaaS) revenue came in at $3.3 billion, narrowly missing the $3.38 billion estimate while showing a 54% increase in constant currency, slightly under the 56.1% estimate.
- Cloud Application (SaaS) revenue recorded $3.8 billion, falling short of the $3.87 billion estimate with a 10% rise in constant currency against the 13.2% expected growth.
- Hardware revenue was $670 million, surpassing the estimate of $652.9 million by 2.3% year-over-year.
- Service revenue rose 6.8% year-over-year to $1.35 billion, exceeding the $1.27 billion estimate.
- Oracle’s adjusted operating income reached $6.24 billion, a 9.3% increase year-over-year, slightly above the $6.21 billion estimate.
- The adjusted operating margin was 42%, compared to 43% from the previous year and higher than the 41.2% estimate.
- Oracle CEO, Safra Catz, highlighted upcoming expectations for Oracle Cloud Infrastructure revenue to grow significantly from $18 billion this fiscal year to $144 billion over four years.
- A significant rise in the RPO contract backlog was noted at 359%, reaching $455 billion.
- Oracle secured four multi-billion-dollar contracts with three different customers during the quarter.
- Analyst opinions on Oracle include 32 buy ratings, 15 hold ratings, and no sell ratings.
Oracle Corp on Smartkarma
Analyst coverage of Oracle Corp on Smartkarma provides valuable insights from top independent analysts. In a recent publication by Yet Another Value Podcast, the focus was on Larry Ellison’s biography “Softwar” and Oracle’s success in adapting to technological changes. The analysis highlighted Ellison’s leadership style and vision for the future of computing, emphasizing his accurate predictions regarding the use of commodity hardware and smartphones. Despite some mixed feelings about Oracle, institutional investors are utilizing AI tools like Fintool to streamline analysis of SEC filings and transcripts, indicating ongoing interest in the company’s developments.
Additionally, Baptista Research‘s reports on Oracle Corporation point towards positive sentiments regarding the company’s performance. The analysis noted Oracle’s strong fourth-quarter and fiscal year 2025 results, surpassing revenue and earnings per share expectations. Emphasizing Oracle’s momentum in its cloud transition strategy, the reports highlighted robust growth across the company’s cloud offerings. Furthermore, Oracle’s record addition to its backlog and strong demand for cloud services underscore the company’s positioning in the market and potential for future revenue streams.
A look at Oracle Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Oracle Corp is positioned with a promising long-term outlook. The company has achieved a strong momentum score of 5, indicating a high level of positive market momentum. This suggests that Oracle may continue to experience growth and upward movement in the future. In addition, the growth score of 4 highlights Oracle’s potential for expansion and development in the coming years, showcasing opportunities for increasing market share and profitability.
Although Oracle may not be currently ranked as high in terms of value and dividend scores, with scores of 2 for both factors, its resilience score of 3 reflects the company’s ability to navigate challenges and maintain stability. With a diverse range of software offerings for enterprise information management, including databases, servers, and business applications, Oracle Corporation is well-positioned to capitalize on its strengths and drive future growth in the competitive technology industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
