Oracle Misses Q4 Earnings — Stock Surges On Booming AI Demand, OpenAI Contract, Partnership With Google And More

Oracle Corp ORCL reported financial results for its fiscal fourth quarter after the market close on Tuesday. Here’s a rundown of the report.

Q4 Earnings: Oracle reported fourth-quarter revenue of $14.3 billion, missing the consensus estimate of $14.554 billion, according to Benzinga Pro. Oracle reported fourth-quarter adjusted earnings of $1.63 per share, missing average analyst estimates of $1.65 per share. 

Remaining performance obligations were up 44% and total revenue increased 3% on a year-over-year basis. Total cloud revenue was up 20%, cloud infrastructure revenue was up 42%, cloud application revenue was up 10%, Fusion cloud revenue was up 14% and NetSuite Cloud ERP revenue was up 19% in the quarter.

Oracle highlighted the strength of recent AI demand. The company said it signed over 30 AI sales contracts in the fourth quarter totaling more than $12.5 billion, including one contract with Open AI to train ChatGPT in the Oracle Cloud.

“In Q3 and Q4, Oracle signed the largest sales contracts in our history — driven by enormous demand for training AI large language models in the Oracle Cloud,” said Safra Catz, CEO of Oracle.

“These record-level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher — and result in double-digit revenue growth this fiscal year. I also expect that each successive quarter should grow faster than the previous quarter.”

Oracle’s board declared a quarterly cash dividend of 40 cents per share payable on July 25 to stockholders of record as of July 11.

Oracle also announced a partnership with Alphabet Inc’s GOOGL GOOG Google Cloud. The collaboration gives customers the choice to combine Oracle Cloud Infrastructure and Google Cloud technologies to help accelerate application migrations and modernization. 

“Oracle and Google Cloud have many joint enterprise customers. This new partnership will help these customers use Oracle database and applications in concert with Google Cloud’s innovative platform and AI capabilities,” said Sundar Pichai, CEO of Google and Alphabet.

Management will hold a conference call to discuss these quarterly results at 5 p.m. ET.

ORCL Price Action: Oracle shares were up about 17.5% year-to-date heading into the print. The stock was up 7.52% at $133.20 in after-hours trading at the time of publication, according to Benzinga Pro.

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