Oracle's Cloud Revenue Jumps 27% in Its Fiscal 2025 Q4

Oracle (NYSE:ORCL) reported its fiscal 2025 fourth-quarter results on June 11, delivering quarterly revenue of $15.9 billion (up 11%) and annual revenue of $57.4 billion (up 9%), surpassing earlier guidance. It also raised its fiscal 2026 revenue target to over $67 billion, forecasting 16% growth. The company highlighted its cloud revenue, which grew by 27% to $6.7 billion in the quarter, and its remaining performance obligation (RPO) which rose 41% to $138 billion, It also expects over 70% growth in its cloud infrastructure (IaaS) segment.In the quarter, which ended May 31, Oracle's cloud infrastructure services reached an annualized revenue run rate of nearly $12 billion, yet its supply was insufficient to meet surging demand. In its efforts to build out its footprint to take advantage of that mismatch, it laid out $9.1 billion in capital expenditures, which resulted in negative free cash flow of $2.9 billion. The company projects that its capex will exceed $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025, with the "vast majority" of it dedicated to revenue-generating data center equipment.This aggressive and customer-commitment-driven capex deployment signals strong visibility into future contracted revenues, providing investors with a rare level of confidence in its long-term sales growth. However, it also introduces near-term margin pressures and execution risks if supply lags persist.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool