Oracle Corporation Sees Exceptional Growth in Q4 2025, Raises Revenue Guidance for FY '26
Oracle Corporation, a leading provider of enterprise software and cloud services, has reported exceptional growth in its fourth quarter of fiscal year 2025. In a recent conference call, the company's CEO, Safra Catz, announced that Q4 total revenue and earnings per share (EPS) both exceeded her guidance.
Catz attributed this success to Oracle's continued transition to the cloud, which has reached a tipping point in terms of revenue growth. The company's remaining performance obligations now stand at $138 billion, up 41% from last year, with the best still to come. Oracle Fusion continues to enable the company to announce its quarterly and annual financial results faster than any other company in the S&P 500.
The applications business, which was one of the first areas Oracle moved to the cloud over a decade ago, has seen strong growth. The company is now the leader in enterprise back office with SaaS solutions for ERP, financials, EPM, HCM, supply chain and manufacturing. With the addition of over 100 AI agents, along with strong bookings and higher renewal rates for its strategic SaaS products, Oracle expects cloud applications growth to accelerate this coming year.
Oracle's infrastructure business has also seen exceptional demand for infrastructure services. The company's contracted noncancelable bookings in remaining performance obligations (RPO) give it confidence that OCI revenue will grow over 70% this current year. Included in this is the strength of Oracle Autonomous Database and the AI data platform, which enable enterprises to leverage AI with their full data set.
As a result of these strengths in cloud applications and infrastructure, including database services, Oracle has raised its revenue guidance for fiscal year '26 to over $67 billion, up 16% for the year. The company's total cloud revenue was up 27%, with SaaS plus IaaS at $6.7 billion, and total cloud services and license support revenue at $11.7 billion, up 14%. IaaS revenue was $3 billion, up 52% on top of last year's growth, while OCI consumption revenue was up 62%, outstripping supply.
With its continued investment in innovation and cloud infrastructure, Oracle is poised for further success in the coming years. As Catz stated during the conference call, "the best is still to come." With a strong foundation of enterprise customers and growing demand for its cloud services, Oracle Corporation is well-positioned to continue its growth trajectory.
