Oracle Corporation (ORC.DE) Q1 2025 Earnings Report

Oracle Q1 2025 results show a solid top-line performance with meaningful profitability and very strong free cash flow generation, underpinned by a software-centric mix and disciplined cost management. Revenue of $13.31 billion rose 6.9% year over year, while gross margins remained elevated around 70.6%, contributing to an operating margin near 30% and an EBITDA margin of approximately 41%. Net income of $2.93 billion and diluted earnings per share of $1.03–$1.06 reflect continued operating leverage and effective tax/expense management. Free cash flow reached about $5.12 billion, supported by operating cash flow of $7.43 billion and capital expenditures of roughly $2.30 billion, yielding a free-cash-flow margin around 38.5% of revenue.

The balance sheet shows a durable cash generation profile, with cash and equivalents of $10.62 billion and substantial debt totaling $84.52 billion, resulting in a net debt position of roughly $73.90 billion. Oracle executed modest share repurchases (~$1.00 billion) and paid ~$1.10 billion in dividends, while financing activities remained a significant cash outflow due to the debt burden. Despite the leverage, the quality of earnings and cash flow supports the company’s ability to fund growth initiatives and capital returns.

From a competitive and strategic perspective, Oracle continues to push its cloud-first strategy through Fusion Cloud, NetSuite, and Oracle Autonomous capabilities, aiming to monetize software as a service across large enterprise customers. Absent explicit forward-looking guidance in the provided data, the analysis focuses on the durability of profitability and cash flows amid ongoing cloud migration and industry consolidation. Valuation remains rich by traditional software metrics, reflecting strong margins and cash flow, with P/E around 34x and an enterprise-value-to-scale cash flow multiple in the high-70s, suggesting upside potential anchored by durable earnings but exposed to leverage and competitive intensity.