Technology giant Oracle (ORCL) has reported fourth-quarter 2025 financial results that beat Wall Street forecasts, driven by strong growth in the company’s cloud-computing unit.
Oracle announced earnings per share (EPS) of $1.79 U.S., which was above Wall Street’s consensus estimate of $1.70 U.S.
Revenue in the final months of last year totaled $17.20 billion U.S., which was ahead of the $16.90 billion U.S. forecast on Wall Street. Sales were up 22% from a year earlier.
ORCL stock jumped 10% higher immediately after the latest results were made public.
Management said that the company’s cloud unit, which represents more than half of the company’s sales, grew 44% from a year ago to $8.90 billion U.S.
The growth was led by Oracle Cloud Infrastructure, which rents out servers over the internet. That business saw revenue grow 84%. Oracle’s cloud software sales saw a 13% increase.
Oracle also said that its backlog grew by $29 billion U.S. to $553 billion U.S. About $300 billion U.S. of that is a single multiyear contract with OpenAI.
The company’s legacy software, hardware, and services businesses grew by a combined 4% to $8.3 billion U.S.
However, while the financial results were strong, Oracle’s forward guidance was in line with expectations and the company didn’t change its outlook for the full year.
Oracle’s stock has struggled in recent months as investors worry about the company’s artificial intelligence (A.I.) capital expenditures and also A.I.’s impact on its software business.
In its most recent quarter, Oracle spent $19 billion U.S. on A.I. data centres. Management reiterated its expectation of $50 billion U.S. in capital expenditures this year.
To pay for the heavy spending on A.I., Oracle added $27 billion U.S. in debt during Q4 2025 and is now carrying $135 billion U.S. of debt on its balance sheet.
Prior to today (March 11), ORCL stock had declined 52% in the past six months to trade at $149.40 U.S. per share.
