Oracle reported QQ1 2025 revenue of $13.307 billion, up 6.86% year-over-year (YoY) and down 6.86% quarter-over-quarter (QoQ). The gross margin remained robust at approximately 70.65%, with an operating margin near 30.0% and a net margin around 22.0%. Diluted EPS was $1.03 and GAAP EPS was $1.06, reflecting a disciplined cost structure and strong profitability during a transition to higher cloud mix. Free cash flow (FCF) reached $5.12 billion, supported by operating cash flow of $7.43 billion and capital expenditures of $2.30 billion, underscoring Oracle’s capacity to generate cash while funding share repurchases and dividends. The company ended the period with $10.62 billion in cash and equivalents and a total liquidity position that, combined with $7.39 billion of net debt, indicates substantial balance-sheet strength but a high absolute leverage level driven by long-term debt and goodwill.
Management’s framework centers on accelerating Oracle Cloud Infrastructure (OCI) adoption, expanding Fusion Cloud (ERP, HCM, SCM), and leveraging NetSuite to cross-sell across an expansive customer base. While management did not provide explicit numeric forward guidance in the QQ1 call data available here, the sustained cash flow generation and margin resilience suggest a positive underlying trajectory as Oracle continues to monetize cloud-native offerings and AI-enabled capabilities. Near-term volatility is plausible given seasonality and enterprise IT budgeting cycles, but the longer-term thesis remains: cloud-first revenue growth with durable margins if the cloud transition sustains.