- Oracle’s adjusted revenue for the third quarter was $14.13 billion, which represents a 6.4% year-over-year increase but fell short of the estimated $14.39 billion.
- Revenue in constant currency grew by 8%, slightly below the estimated 9.09% growth rate.
- The company reported an adjusted EPS of $1.47, an improvement from $1.41 year-over-year, but below the expected $1.49.
- Cloud revenue, encompassing IaaS and SaaS, totaled $6.2 billion, missing the estimate of $6.3 billion; in constant currency, it increased by 25%, while the estimate was 26.5%.
- Cloud Infrastructure revenue (IaaS) reached $2.7 billion, slightly under the estimate of $2.71 billion, with a constant currency growth of 51% compared to the expected 54.2%.
- Cloud services and license support revenue posted a 10% increase year-over-year at $11.01 billion, against an anticipated $11.18 billion.
- Cloud license and on-premise license revenue was $1.13 billion, a 10% decrease year-over-year, missing the forecast of $1.2 billion.
- Hardware revenue declined by 6.8% year-over-year to $703 million, below the estimate of $718.2 million.
- Service revenue slightly exceeded expectations at $1.29 billion with a year-over-year decrease of 1.2%, as the estimate was $1.28 billion.
- Adjusted operating income was $6.20 billion, marking a 7% year-over-year increase, but did not meet the estimated $6.25 billion.
- The adjusted operating margin remained steady at 44% compared to both the previous year and the estimate of 43.6%.
- Market analysts’ consensus includes 28 buy ratings, 15 hold ratings, and no sell ratings on Oracle’s stock.
Oracle Corp on Smartkarma
Analysts on Smartkarma are bullish on Oracle Corp, with in-depth research highlighting the company’s strong performance and potential for growth. Baptista Research‘s report on Oracle’s astonishing SaaS expansion emphasized the company’s robust earnings in the second quarter of fiscal year 2025, driven by significant growth in their cloud services segment. The total revenue of $14.1 billion and non-GAAP earnings per share of $1.47 surpassed expectations, despite currency fluctuations.
Another report by MBI Deep Dives delves into Larry Ellison’s journey with Oracle since its founding in 1977 with minimal capital investment. Ellison’s competitive spirit has propelled Oracle’s success, with the company not relying on venture capital or equity raises. The analysts’ bullish sentiment towards Oracle is corroborated by Baptista Research‘s insight into the company’s continued growth and strategic expansions in the cloud market, as demonstrated in their Q1 FY 2025 results showing significant revenue growth and a standout performance in SaaS and IaaS, generating $5.6 billion.
A look at Oracle Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
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
Oracle Corporation, a leader in enterprise information management software, has a promising long-term outlook based on the Smartkarma Smart Scores. With a strong focus on growth, scoring a 4 in this area, Oracle is positioned to expand its market presence and drive future success. Additionally, the company shows positive momentum with a score of 3, indicating a potential for continued upward movement in the market.
While Oracle scores lower in value, dividend, and resilience, with scores of 2 in each of these areas, the emphasis on growth and momentum suggests a positive trajectory for the company in the long run. As Oracle continues to innovate in enterprise software solutions, investors may find opportunities for growth and value creation over time.
Summary: Oracle Corporation is a key player in the software industry, offering a wide range of products including databases, servers, application tools, and business applications. The company’s software is versatile, running on various devices from PCs to mainframes, positioning Oracle as a versatile and reliable option for enterprise information management needs.
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.
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