Executive Summary
Oracle reported QQ2 2025 revenue of $14.059 billion, up 8.64% year-over-year and 5.65% quarter-over-quarter, underscoring continued demand for Oracle’s cloud and license-based products within the technology infrastructure software space. Gross margins remained robust at 70.9%, delivering a 30.0% operating margin and a 22.4% net margin, with diluted EPS of $1.10 and GAAP EPS of $1.13. The quarter’s profitability benefited from a favorable mix of software licenses and cloud offerings, even as near-term cash flow faced pressure due to continued heavy investments in cloud infrastructure and related intangibles. Free cash flow was negative at approximately -$2.67 billion, driven by capex of about $3.97 billion and working-capital dynamics, while cash and cash equivalents stood at ~$10.94 billion. The balance sheet remains asset-rich but shows elevated leverage, with total debt around $88.62 billion and net debt of about $77.68 billion. Deferred revenue stood at ~$9.43 billion, highlighting the recurring revenue base and future cadence of recognized revenue. In the near term, investors should monitor execution in Oracle Cloud Infrastructure (OCI) initiatives, operating margin progression, and the trajectory of free cash flow as capital investments normalize. Given the absence of explicit quarterly guidance in the provided materials, the outlook hinges on cloud adoptions, AI-driven workloads, and the company’s ability to convert profitability into cash generation over time.
Key Performance Indicators
Key Insights
Revenue: $14.059B (YoY +8.64%, QoQ +5.65%). Gross Profit: $9.974B (YoY +8.40%, QoQ +6.10%), Gross Margin: 70.9%. Operating Income: $4.22B (YoY +16.51%, QoQ +5.74%), Operating Margin: 30.0%. Net Income: $3.151B (YoY +25.89%, QoQ +7.58%), Net Margin: 22.4%. EBITDA: $5.64B (EBITDA Margin: 40.12%). EPS (GAAP): $1.13, EPS Diluted: $1.10. Weighted Avg Shares (GAAP): 2.79B; Weighted Avg Shares Diluted: 2.869B. Free Cash Flow: -$2.667B; Operating Cash Flow: $1.304B; Cash from Investing Activities: -$3.7...
Financial Highlights
Revenue: $14.059B (YoY +8.64%, QoQ +5.65%). Gross Profit: $9.974B (YoY +8.40%, QoQ +6.10%), Gross Margin: 70.9%. Operating Income: $4.22B (YoY +16.51%, QoQ +5.74%), Operating Margin: 30.0%. Net Income: $3.151B (YoY +25.89%, QoQ +7.58%), Net Margin: 22.4%. EBITDA: $5.64B (EBITDA Margin: 40.12%). EPS (GAAP): $1.13, EPS Diluted: $1.10. Weighted Avg Shares (GAAP): 2.79B; Weighted Avg Shares Diluted: 2.869B. Free Cash Flow: -$2.667B; Operating Cash Flow: $1.304B; Cash from Investing Activities: -$3.788B; Net Debt: -$77.683B (adjusted for cash). Cash and Equivalents: $10.941B; Total Debt: $88.624B. Total Assets: $148.483B; Total Liabilities: $134.247B; Total Equity: $13.746B. Current Ratio: 0.809; Quick Ratio: 0.809; Deferred Revenue: $9.43B; RPO/Recurring Revenue contribution implied by business mix.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.06B |
8.64% |
5.65% |
| Gross Profit |
9.97B |
8.40% |
6.10% |
| Operating Income |
4.22B |
16.51% |
5.74% |
| Net Income |
3.15B |
25.89% |
7.58% |
| EPS |
1.13 |
24.18% |
6.60% |
Key Financial Ratios
operatingProfitMargin
30%
operatingCashFlowPerShare
$0.47
freeCashFlowPerShare
$-0.96
dividendPayoutRatio
35.5%
Management Commentary
Note: No earnings call transcript was provided in the data. Consequently, there are no management quotes or verbatim highlights available to cite. The analysis below relies on disclosed P&L, balance sheet, and cash flow metrics, along with typical market-context considerations for Oracle’s Cloud and software-infrastructure positioning.
Forward Guidance
No explicit numeric guidance was included in the QQ2 2025 materials. Investors should monitor Oracle’s progress on OCI growth, new multi-product cloud migrations, and the sustainability of profitability as Oracle continues its cloud transition. Key factors to watch include: (1) trajectory of free cash flow and capex normalization, (2) the rate of deferred revenue recognition and renewal rates signaling ARR strength, (3) operating margin expansion from mix shift toward higher-margin cloud services, and (4) competitive dynamics with hyperscalers and other enterprise software providers. If OCI executions meet or exceed internal targets, coupled with disciplined OPEX control, Oracle could show improving FCF while maintaining robust profitability.