3Q25 Revenue: $14.13B, +6.4% YoY, miss estimates by $260M
3Q25 Non-GAAP EPS: $1.47 miss estimates by $0.02
3Q25 Dividend: Oracle declares $0.50/share quarterly dividend, 25% increase from prior dividend of $0.40; Forward yield 1.34%; Payable April 23; for shareholders of record April 10; ex-div April 10.
FY26 Guidance: Expects a 15% revenue growth in FY26, compared to consensus of 12.6%.
Comment: Oracle delivered a mixed set of results, with weaker-than-expected performance but a more optimistic revenue growth outlook. While revenue increased year-over-year, it still fell short of market expectations. Cloud services and license support revenue rose 10% to $11bn, missing estimates of $11.21bn. Looking ahead, Oracle highlighted several key cloud agreements with major tech players, including OpenAI, Meta Platforms, and Nvidia. Management expects these deals, along with a sizable sales backlog, to drive a 15% increase in overall revenue next fiscal year. The company has been enhancing its cloud services by integrating AI to process large datasets and is expanding its infrastructure with strategic investments in data centers and semiconductor technology. Notably, Oracle remains on track to double its data center capacity this year. Oracle also stands to benefit from its participation in the Stargate project, a $500bn AI infrastructure initiative in the U.S. announced in January alongside OpenAI and SoftBank. This long-term investment could further strengthen the company’s position in the AI-driven cloud market. 4Q25recommended trading range: $130 to $160. Neutral Outlook.