Oracle Corporation reported its Q3 fiscal 2025 earnings on March 10, 2025. The company, known for its integrated cloud applications and autonomous infrastructure, recorded significant growth in Cloud services alongside a robust increase in Remaining Performance Obligations (RPO).

For Q3, Oracle’s total revenues were $14.1 billion, a rise of 6% compared to the same quarter last year. In constant currency terms, revenue growth was 8%. The company generated $11.0 billion from cloud services and license support, marking a 10% increase year-over-year, or 12% in constant currency. However, cloud license and on-premise license revenues dropped 10% to $1.1 billion.

Cloud revenue—encompassing both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—achieved $6.2 billion, up 25% from the previous year or 23% in USD. More specifically, Oracle’s IaaS revenue soared by 51% to $2.7 billion, while SaaS revenue advanced by 10% to $3.6 billion. The annualized revenue for Infrastructure Cloud services hit $10.6 billion, with OCI consumption revenue climbing 57%.

Oracle also highlighted the continued strength of its RPO, which reached $130 billion, a 63% increase year-over-year. This growth indicates a substantial demand for Oracle’s cloud services and reflects a trend toward longer-term contracts, as over 90% of cloud RPO is anticipated to be recognized as revenue in the next twelve months.

Gross profit for cloud services and license support grew 10%, with Q3 operating income rising by 9% to $4.4 billion. The operating margin stood at 44%, slightly above the previous year. The GAAP earnings per share increased by 20% to $1.02, while non-GAAP EPS rose by 4% to $1.47.

Based on current trends, Oracle’s guidance for Q4 suggests total revenue growth between 9% and 11%, alongside cloud revenue targets ranging from a 24% to 28% increase. Non-GAAP EPS is projected between $1.61 and $1.66, with a currency impact potentially negatively affecting EPS by $0.01 to $0.02. The company is anticipating total fiscal year 2025 CapEx to double from last year’s levels, reflecting higher demand and expanded capacity.

In summary, Oracle Corporation continues to exhibit significant growth, particularly in cloud services, driven by rising demand in AI and database services, underlined by a robust backlog and positive operational metrics.