Oracle Corp Earnings - Q4 2025 Analysis
Positives
- IaaS or cloud infrastructure revenue was up 51% to $10.2 billion for Q4, with consumption revenue up 59% YoY.
- Total application subscription revenue grew by 7%, and infrastructure subscription revenues grew by 17%.
- Total revenues for Q4 were $15.9 billion, up 11% YoY.
Q&A Highlights - Q4 2025
Analyst asked about the lack of understanding of Oracle's AI business across the street and requested color or numbers to help investors understand the durability and profitability of the AI business.
Lawrence Joseph Ellison explained that Oracle has the most valuable data in the world, including data from companies like JPMorgan Chase. He emphasized that companies want to use AI models on their own data, and Oracle's applications and database take all the data inside the applications and make it available to AI models. He mentioned that Oracle's database is an AI-centric piece of technology called Oracle 23ai, which enables companies to use AI. He also mentioned that Oracle has partnerships with other companies and a large pipeline of non-cancelable contracts, and that the company's technology is different and runs faster than its competitors, making it the destination of choice for AI workloads and database workloads.
Analyst asked about the statement that Stargate is part of the more than 70% growth in IaaS in fiscal 2026.
Safra A. Catz explained that Stargate is still information and that there are many partnerships in the pipeline that are part of the enormous growth rate. She mentioned that Oracle is the destination for companies who want AI workloads, database workloads, and applications, and that all of this comes into their RPO. She also mentioned that the company has so much in pipeline and RPO that they are still waiving off customers or scheduling them out into the future due to supply constraints. She emphasized that the company's technology is different and runs faster than its competitors, and that they have enormous pipeline and demand.
Analyst asked about the relationship between Stargate and the company's revenue growth in IaaS.
Stargate is not yet formed, but some of the company's business with OpenAI, one of its partners in Stargate, is part of its future revenue growth.
Analyst asked about the company's strategy for migrating customers to the cloud, specifically the database business.
The database business is healthy and growing, with license revenue up and cloud metrics such as autonomous, consumption, and Oracle Cloud all using up capacity. The company has a multi-cloud strategy and is seeing demand for database support in all clouds, including on-premise.
Analyst asked about the advantage of being the only vendor with enterprise-grade technology from apps to infrastructure.
The company's ability to develop applications on top of its own database has allowed it to gain insights into how to improve the database, making it more reliable and secure. The company has also been able to use its existing database technology to make its cloud more scalable and secure. Having all levels of technology allows the company to solve technical problems at the right layer and build an integrated solution that is faster, cheaper, and more reliable than competitors.
