Technology

Oracle Announces Fiscal 2025 Second Quarter Financial Results

Published

2 years ago

December 9, 2024

Q2 GAAP Earnings per Share up 24% to $1.10, Non-GAAP Earnings per Share up 10% to $1.47Q2 Total Revenue $14.1 billion, up 9% in both USD and constant currencyQ2 Total Remaining Performance Obligations $97 billion, up 49% in USD & 50% in constant currencyQ2 Cloud Revenue (IaaS plus SaaS) $5.9 billion, up 24% in both USD and constant currencyQ2 Cloud Infrastructure (IaaS) Revenue $2.4 billion, up 52% in both USD and constant currencyQ2 Cloud Application (SaaS) Revenue $3.5 billion, up 10% in both USD and constant currencyQ2 Fusion Cloud ERP (SaaS) Revenue $0.9 billion, up 18% in both USD and constant currencyQ2 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20% in USD and 19% in constant currency

AUSTIN, Texas, Dec. 9, 2024 /PRNewswire/ — Oracle Corporation (NYSE: ORCL) today announced fiscal 2025 Q2 results. Total quarterly revenues were up 9% year-over-year, in both USD and constant currency, to $14.1 billion. Cloud services and license support revenues were up 12% year-over-year, in both USD and constant currency, to $10.8 billion. Cloud license and on-premise license revenues were up 1% in USD and up 3% in constant currency, to $1.2 billion.

Q2 GAAP operating income was $4.2 billion. Non-GAAP operating income was $6.1 billion, up 10% in both USD and constant currency. GAAP operating margin was 30%, and non-GAAP operating margin was 43%. GAAP net income was $3.2 billion. Non-GAAP net income was $4.2 billion, up 12% in both USD and constant currency. Q2 GAAP earnings per share was $1.10, up 24% in USD and up 23% in constant currency, while non-GAAP earnings per share was $1.47, up 10% in both USD and constant currency.

Short-term deferred revenues were $9.4 billion. Over the last twelve months, operating cash flow was $20.3 billion and free cash flow was $9.5 billion.

“Record level AI demand drove Oracle Cloud Infrastructure revenue up 52% in Q2, a much higher growth rate than any of our hyperscale cloud infrastructure competitors,” said Oracle CEO, Safra Catz. “Growth in the AI segment of our Infrastructure business was extraordinary—GPU consumption was up 336% in the quarter—and we delivered the world’s largest and fastest AI SuperComputer scaling up to 65,000 NVIDIA H200 GPUs. With our remaining performance obligation (RPO) up 50% to $97 billion, we believe our already impressive growth rates will continue to climb even higher. This fiscal year, total Oracle Cloud revenue should top $25 billion.”

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” said Oracle Chairman and CTO, Larry Ellison. “And we just signed an agreement with Meta—for them to use Oracle’s AI Cloud Infrastructure—and collaborate with Oracle on the development of AI Agents based on Meta’s Llama models. The Oracle Cloud trains dozens of specialized AI models and embeds hundreds of AI Agents in cloud applications. For example, Oracle’s AI Agents automate drug design, image and genomic analysis for cancer diagnostics, audio updates to electronic health records for patient care, satellite image analysis to predict and improve agricultural output, fraud and money laundering detection, dual-factor biometric computer logins, and real time video weapons detection in schools. Oracle trained AI models and AI Agents will improve the rate of scientific discovery, economic development and corporate growth throughout the world. The scale of the opportunity is unimaginable.”

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 9, 2025, with a payment date of January 23, 2025.

A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.A list of recent technical innovations and announcements is available at www.oracle.com/news/.To learn what industry analysts have been saying about Oracle’s products and services see www.oracle.com/corporate/analyst-reports/.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.

About Oracle

Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks

Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

“Safe Harbor” Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including the expectations for converting the Remaining Performance Obligations to revenue, future total Oracle Cloud revenue this fiscal year and the scale of opportunity for Oracle trained AI models and AI Agents, are “forward-looking statements” and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; our ability to secure data center capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of December 9, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three Months Ended November 30,

% Increase

(Decrease)

% of

(Decrease)

in Constant

2024

Revenues

2023

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$ 10,806

77 %

$ 9,639

74 %

12 %

Cloud license and on-premise license

1,195

9 %

1,178

9 %

1 %

3 %

Hardware

728

5 %

756

6 %

(4 %)

(3 %)

Services

1,330

9 %

1,368

11 %

(3 %)

Total revenues

14,059

100 %

12,941

100 %

9 %

OPERATING EXPENSES

Cloud services and license support

2,746

19 %

2,274

17 %

21 %

Hardware

172

1 %

213

2 %

(20 %)

(19 %)

Services

1,167

8 %

1,253

10 %

(7 %)

Sales and marketing

2,190

16 %

2,093

16 %

5 %

Research and development

2,471

18 %

2,226

17 %

11 %

General and administrative

387

3 %

375

3 %

Amortization of intangible assets

591

4 %

755

6 %

(22 %)

Acquisition related and other

0 %

(34 %)

(33 %)

Restructuring

1 %

0 %

1 %

Total operating expenses

9,839

70 %

9,319

72 %

6 %

OPERATING INCOME

4,220

30 %

3,622

28 %

17 %

16 %

Interest expense

(866)

(6 %)

(888)

(7 %)

(3 %)

Non-operating income (expenses), net

0 %

(14)

0 %

INCOME BEFORE INCOME TAXES

3,390

24 %

2,720

21 %

25 %

24 %

Provision for income taxes

239

2 %

217

2 %

11 %

10 %

NET INCOME

$ 3,151

22 %

$ 2,503

19 %

26 %

EARNINGS PER SHARE:

Basic

$ 1.13

$ 0.91

Diluted

$ 1.10

$ 0.89

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,790

2,746

Diluted

2,869

2,817

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended November 30, 2024 compared with the corresponding prior year period increased our operating income by 1 percentage point.

Not meaningful

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

Three Months Ended November 30,

% Increase
(Decrease)
in US $

% Increase
(Decrease)
in Constant
Currency (2)

2024

2023

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$ 14,059

$ –

$ 14,059

$ 12,941

$ –

$ 12,941

9 %

TOTAL OPERATING EXPENSES

$ 9,839

$ (1,876)

$ 7,963

$ 9,319

$ (1,914)

$ 7,405

6 %

8 %

6 %

8 %

Stock-based compensation (3)

1,170

(1,170)

–

1,029

(1,029)

–

14 %

Amortization of intangible assets (4)

591

(591)

–

755

(755)

–

(22 %)

Acquisition related and other

(31)

–

(47)

–

(34 %)

(33 %)

Restructuring

(84)

–

(83)

–

0 %

1 %

OPERATING INCOME

$ 4,220

$ 1,876

$ 6,096

$ 3,622

$ 1,914

$ 5,536

17 %

10 %

16 %

10 %

OPERATING MARGIN %

30 %

43 %

28 %

43 %

203 bp.

58 bp.

196 bp.

52 bp.

INCOME TAX EFFECTS (5)

$ 239

$ 820

$ 1,059

$ 217

$ 655

$ 872

11 %

22 %

10 %

21 %

NET INCOME

$ 3,151

$ 1,056

$ 4,207

$ 2,503

$ 1,259

$ 3,762

26 %

12 %

26 %

12 %

DILUTED EARNINGS PER SHARE

$ 1.10

$ 1.47

$ 0.89

$ 1.34

24 %

10 %

23 %

10 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,869

–

2,869

2,817

–

2,817

2 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2)

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Three Months Ended

November 30, 2024

November 30, 2023

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud services and license support

$ 158

$ (158)

$ –

$ 137

$ (137)

$ –

Hardware

(8)

–

(6)

–

Services

(53)

–

(45)

–

Sales and marketing

195

(195)

–

174

(174)

–

Research and development

657

(657)

–

573

(573)

–

General and administrative

(99)

–

(94)

–

Total stock-based compensation

$ 1,170

$ (1,170)

$ –

$ 1,029

$ (1,029)

$ –

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2024 was as follows:

Remainder of fiscal 2025

$ 1,092

Fiscal 2026

1,639

Fiscal 2027

672

Fiscal 2028

635

Fiscal 2029

561

Fiscal 2030

522

Thereafter

558

Total intangible assets, net

$ 5,679

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 7.1% and 8.0% in the second quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 20.1% and 18.8% in the second quarter of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the second quarters of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

Not meaningful

ORACLE CORPORATION

Q2 FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Six Months Ended November 30,

% Increase

(Decrease)

% of

(Decrease)

in Constant

2024

Revenues

2023

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$ 21,324

78 %

$ 19,186

75 %

11 %

Cloud license and on-premise license

2,065

8 %

1,987

8 %

4 %

5 %

Hardware

1,383

5 %

1,470

6 %

(6 %)

(5 %)

Services

2,594

9 %

2,751

11 %

(6 %)

(5 %)

Total revenues

27,366

100 %

25,394

100 %

8 %

OPERATING EXPENSES

Cloud services and license support

5,344

20 %

4,452

18 %

20 %

Hardware

333

1 %

432

2 %

(23 %)

(22 %)

Services

2,314

8 %

2,465

10 %

(6 %)

Sales and marketing

4,226

15 %

4,118

16 %

3 %

Research and development

4,777

18 %

4,442

17 %

8 %

General and administrative

745

3 %

769

3 %

(3 %)

Amortization of intangible assets

1,215

4 %

1,518

6 %

(20 %)

Acquisition related and other

0 %

(25 %)

Restructuring

157

1 %

222

1 %

(29 %)

Total operating expenses

19,155

70 %

18,476

73 %

4 %

OPERATING INCOME

8,211

30 %

6,918

27 %

19 %

Interest expense

(1,708)

(6 %)

(1,760)

(7 %)

(3 %)

Non-operating income (expenses), net

0 %

(63)

0 %

INCOME BEFORE INCOME TAXES

6,560

24 %

5,095

20 %

29 %

30 %

Provision for income taxes

480

2 %

172

1 %

179 %

181 %

NET INCOME

$ 6,080

22 %

$ 4,923

19 %

24 %

EARNINGS PER SHARE:

Basic

$ 2.19

$ 1.80

Diluted

$ 2.13

$ 1.75

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,775

2,737

Diluted

2,860

2,820

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the six months ended November 30, 2024 compared with the corresponding prior year period had no impact to our total revenues, total operating expenses and operating income.

Not meaningful

ORACLE CORPORATION

Q2 FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

Six Months Ended November 30,

% Increase
(Decrease)
in US $

% Increase
(Decrease)
in Constant
Currency (2)

2024

2023

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$ 27,366

$ –

$ 27,366

$ 25,394

$ –

$ 25,394

8 %

TOTAL OPERATING EXPENSES

$ 19,155

$ (3,592)

$ 15,563

$ 18,476

$ (3,676)

$ 14,800

4 %

5 %

4 %

6 %

Stock-based compensation (3)

2,176

(2,176)

–

1,878

(1,878)

–

16 %

Amortization of intangible assets (4)

1,215

(1,215)

–

1,518

(1,518)

–

(20 %)

Acquisition related and other

(44)

–

(58)

–

(25 %)

Restructuring

157

(157)

–

222

(222)

–

(29 %)

OPERATING INCOME

$ 8,211

$ 3,592

$ 11,803

$ 6,918

$ 3,676

$ 10,594

19 %

11 %

19 %

12 %

OPERATING MARGIN %

30 %

43 %

27 %

42 %

276 bp.

141 bp.

279 bp.

140 bp.

INCOME TAX EFFECTS (5)

$ 480

$ 1,500

$ 1,980

$ 172

$ 1,478

$ 1,650

179 %

20 %

181 %

21 %

NET INCOME

$ 6,080

$ 2,092

$ 8,172

$ 4,923

$ 2,198

$ 7,121

24 %

15 %

24 %

15 %

DILUTED EARNINGS PER SHARE

$ 2.13

$ 2.86

$ 1.75

$ 2.53

22 %

13 %

23 %

14 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,860

–

2,860

2,820

–

2,820

1 %

(1)

(2)

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Six Months Ended

November 30, 2024

November 30, 2023

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud services and license support

$ 299

$ (299)

$ –

$ 248

$ (248)

$ –

Hardware

(14)

–

(11)

–

Services

(96)

–

(78)

–

Sales and marketing

356

(356)

–

309

(309)

–

Research and development

1,226

(1,226)

–

1,057

(1,057)

–

General and administrative

185

(185)

–

175

(175)

–

Total stock-based compensation

$ 2,176

$ (2,176)

$ –

$ 1,878

$ (1,878)

$ –

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2024 was as follows:

Remainder of fiscal 2025

$ 1,092

Fiscal 2026

1,639

Fiscal 2027

672

Fiscal 2028

635

Fiscal 2029

561

Fiscal 2030

522

Thereafter

558

Total intangible assets, net

$ 5,679

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 7.3% and 3.4% in the first half of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.5% and 18.8% in the first half of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first half of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

Not meaningful

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

November 30,

May 31,

2024

ASSETS

Current Assets:

Cash and cash equivalents

$ 10,941

$ 10,454

Marketable securities

370

207

Trade receivables, net

8,177

7,874

Prepaid expenses and other current assets

4,015

4,019

Total Current Assets

23,503

22,554

Non-Current Assets:

Property, plant and equipment, net

26,432

21,536

Intangible assets, net

5,679

6,890

Goodwill, net

62,204

62,230

Deferred tax assets

11,984

12,273

Other non-current assets

18,681

15,493

Total Non-Current Assets

124,980

118,422

TOTAL ASSETS

$ 148,483

$ 140,976

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Notes payable and other borrowings, current

$ 8,162

$ 10,605

Accounts payable

2,679

2,357

Accrued compensation and related benefits

1,653

1,916

Deferred revenues

9,430

9,313

Other current liabilities

7,128

7,353

Total Current Liabilities

29,052

31,544

Non-Current Liabilities:

Notes payable and other borrowings, non-current

80,462

76,264

Income taxes payable

9,553

10,817

Deferred tax liabilities

2,864

3,692

Other non-current liabilities

12,316

9,420

Total Non-Current Liabilities

105,195

100,193

Stockholders’ Equity

14,236

9,239

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 148,483

$ 140,976

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

Six Months Ended November 30,

2024

2023

Cash Flows From Operating Activities:

Net income

$ 6,080

$ 4,923

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

1,712

1,510

Amortization of intangible assets

1,215

1,518

Deferred income taxes

(601)

(1,049)

Stock-based compensation

2,176

1,878

Other, net

298

331

Changes in operating assets and liabilities:

(Increase) decrease in trade receivables, net

(451)

145

Decrease in prepaid expenses and other assets

676

301

Decrease in accounts payable and other liabilities

(1,143)

(1,048)

Decrease in income taxes payable

(1,685)

(1,541)

Increase in deferred revenues

454

149

Net cash provided by operating activities

8,731

7,117

Cash Flows From Investing Activities:

Purchases of marketable securities and other investments

(636)

(515)

Proceeds from sales and maturities of marketable securities and other investments

356

157

Acquisitions, net of cash acquired

–

(59)

Capital expenditures

(6,273)

(2,394)

Net cash used for investing activities

(6,553)

(2,811)

Cash Flows From Financing Activities:

Payments for repurchases of common stock

(300)

(600)

Proceeds from issuances of common stock

307

426

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(898)

(1,733)

Payments of dividends to stockholders

(2,221)

(2,190)

(Repayments of) proceeds from issuances of commercial paper, net

(396)

1,749

Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs

11,837

–

Repayments of senior notes and term loan credit agreements

(9,700)

(3,500)

Other, net

(276)

Net cash used for financing activities

(1,647)

(5,817)

Effect of exchange rate changes on cash and cash equivalents

(44)

(10)

Net increase (decrease) in cash and cash equivalents

487

(1,521)

Cash and cash equivalents at beginning of period

10,454

9,765

Cash and cash equivalents at end of period

$ 10,941

$ 8,244

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

FREE CASH FLOW – TRAILING 4-QUARTERS (1)

($ in millions)

Fiscal 2024

Fiscal 2025

GAAP Operating Cash Flow

$ 17,745

$ 17,039

$ 18,239

$ 18,673

$ 19,126

$ 20,287

Capital Expenditures

(8,290)

(6,935)

(5,981)

(6,866)

(7,855)

(10,745)

Free Cash Flow

$ 9,455

$ 10,104

$ 12,258

$ 11,807

$ 11,271

$ 9,542

Operating Cash Flow % Growth over prior year

68 %

13 %

18 %

9 %

8 %

19 %

Free Cash Flow % Growth over prior year

76 %

20 %

68 %

39 %

19 %

(6 %)

GAAP Net Income

$ 9,375

$ 10,137

$ 10,642

$ 10,467

$ 10,976

$ 11,624

Operating Cash Flow as a % of Net Income

189 %

168 %

171 %

178 %

174 %

175 %

Free Cash Flow as a % of Net Income

101 %

100 %

115 %

113 %

103 %

82 %

(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from
operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant
to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of
liquidity.

ORACLE CORPORATION

Q2 FISCAL 2025 FINANCIAL RESULTS

SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)

($ in millions)

Fiscal 2024

Fiscal 2025

TOTAL

REVENUES BY OFFERINGS

Cloud services

$ 4,635

$ 4,775

$ 5,054

$ 5,311

$ 19,774

$ 5,623

$ 5,937

$ 11,559

License support

4,912

4,864

4,909

4,923

19,609

4,896

4,869

9,765

Cloud services and license support

9,547

9,639

9,963

10,234

39,383

10,519

10,806

21,324

Cloud license and on-premise license

809

1,178

1,256

1,838

5,081

870

1,195

2,065

Hardware

714

756

754

842

3,066

655

728

1,383

Services

1,383

1,368

1,307

1,373

5,431

1,263

1,330

2,594

Total revenues

$ 12,453

$ 12,941

$ 13,280

$ 14,287

$ 52,961

$ 13,307

$ 14,059

$ 27,366

AS REPORTED REVENUE GROWTH RATES

Cloud services

30 %

25 %

20 %

25 %

21 %

24 %

23 %

License support

2 %

1 %

0 %

1 %

0 %

Cloud services and license support

13 %

12 %

9 %

12 %

10 %

12 %

11 %

Cloud license and on-premise license

(10 %)

(18 %)

(3 %)

(15 %)

(12 %)

7 %

1 %

4 %

Hardware

(6 %)

(11 %)

(7 %)

(1 %)

(6 %)

(8 %)

(4 %)

(6 %)

Services

2 %

(2 %)

(5 %)

(6 %)

(3 %)

(9 %)

(3 %)

(6 %)

Total revenues

9 %

5 %

7 %

3 %

6 %

7 %

9 %

8 %

CONSTANT CURRENCY REVENUE GROWTH RATES (2)

Cloud services

29 %

24 %

20 %

24 %

22 %

24 %

23 %

License support

0 %

1 %

0 %

Cloud services and license support

12 %

11 %

10 %

11 %

12 %

11 %

Cloud license and on-premise license

(11 %)

(19 %)

(3 %)

(14 %)

(12 %)

8 %

3 %

5 %

Hardware

(8 %)

(12 %)

(7 %)

0 %

(7 %)

(8 %)

(3 %)

(5 %)

Services

1 %

(3 %)

(5 %)

(6 %)

(3 %)

(8 %)

(3 %)

(5 %)

Total revenues

8 %

4 %

7 %

4 %

6 %

8 %

9 %

8 %

CLOUD SERVICES AND LICENSE SUPPORT REVENUES

BY ECOSYSTEM

Applications cloud services and license support

$ 4,471

$ 4,474

$ 4,584

$ 4,642

$ 18,172

$ 4,769

$ 4,784

$ 9,552

Infrastructure cloud services and license support

5,076

5,165

5,379

5,592

21,211

5,750

6,022

11,772

Total cloud services and license support revenues

$ 9,547

$ 9,639

$ 9,963

$ 10,234

$ 39,383

$ 10,519

$ 10,806

$ 21,324

AS REPORTED REVENUE GROWTH RATES

Applications cloud services and license support

11 %

10 %

6 %

9 %

7 %

Infrastructure cloud services and license support

15 %

14 %

13 %

12 %

14 %

13 %

17 %

15 %

Total cloud services and license support revenues

13 %

12 %

9 %

12 %

10 %

12 %

11 %

CONSTANT CURRENCY REVENUE GROWTH RATES (2)

Applications cloud services and license support

11 %

9 %

10 %

6 %

9 %

7 %

Infrastructure cloud services and license support

14 %

12 %

13 %

14 %

17 %

16 %

Total cloud services and license support revenues

12 %

11 %

10 %

11 %

12 %

11 %

GEOGRAPHIC REVENUES

Americas

$ 7,841

$ 8,067

$ 8,270

$ 8,945

$ 33,122

$ 8,372

$ 8,933

$ 17,305

Europe/Middle East/Africa

3,005

3,170

3,316

3,539

13,030

3,228

3,381

6,609

Asia Pacific

1,607

1,704

1,694

1,803

6,809

1,707

1,745

3,452

Total revenues

$ 12,453

$ 12,941

$ 13,280

$ 14,287

$ 52,961

$ 13,307

$ 14,059

$ 27,366

(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.

(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a
framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and
comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on
May 31, 2024 and 2023 for the fiscal 2025 and fiscal 2024 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during
the respective periods.

APPENDIX A

ORACLE CORPORATION
Q2 FISCAL 2025 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.

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Technology

Axon Announces Body 5: Next-Generation Camera Built for the AI Era

Published

4 hours ago

October 24, 2026

Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field

SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.

For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.

“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”

Axon Body 5: Built for the AI Era

Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day.

For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.

Both models feature several key advancements, including:

25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.

The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:

A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.

Bringing More of Axon’s AI Era Into the Field

Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.

Increasingly, Axon is also bringing AI into real-time operations.

Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:

Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.

Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.

Innovating Responsibly

Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.

General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility.

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com

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Technology

In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design

Published

5 hours ago

October 24, 2026

The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.

ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.

The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.

The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.

Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.

The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.

Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.

Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.

Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.

The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.

As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.

A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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Technology

World Young Scientist Summit 2026 Opens in Wenzhou, Zhejiang

Published

6 hours ago

October 24, 2026

WENZHOU, China, Oct. 24, 2026 /PRNewswire/ — This is a report by China Daily:

On October 24, the World Young Scientist Summit 2026 opened in Wenzhou, Zhejiang. The event is hosted by the China Association for Science and Technology (CAST), the Zhejiang Provincial People’s Government, and the World Association of Young Scientists. Nearly 800 representatives, including scientists, educators, and entrepreneurs from more than 60 countries and regions, are attending the summit.

He Junke, Vice President of CAST in charge of daily work and First Secretary of its Secretariat; Lian Yimin, Chairman and Party Group Secretary of the Zhejiang Provincial Committee of the Chinese People’s Political Consultative Conference; Marcelo Knobel, Executive Director of The World Academy of Sciences; and Zhang Zhenfeng, Member of the Standing Committee of the CPC Zhejiang Provincial Committee and Secretary of the CPC Wenzhou Municipal Committee, attended the summit and delivered remarks. Yao Gaoyuan, Vice Governor of the Zhejiang Provincial People’s Government, presided over the first segment of the plenary session.

With the theme “Gathering Talents Worldwide to Create a Better Future,” the summit’s annual agenda is “Global Youth Action in the AI Era: Building a Sustainable Future.” It aims to draw on the insights of young people around the world, deepen international sci-tech cooperation, and jointly address questions about young people, science, the world and the future.

Efim Zelmanov, Fields Medalist and Foreign Member of the Chinese Academy of Sciences; Chen Yunji, Deputy Director of the Institute of Computing Technology, CAS, and Director of the National Key Laboratory of Processor Chips; Mary Garson, President of the International Union of Pure and Applied Chemistry; and Lu Chaoyang, Member of the Standing Committee of CAST, Executive Dean of the Shanghai Institute of Advanced Study, University of Science and Technology of China, and Chairman of the Council of the World Association of Young Scientists, delivered keynote speeches respectively on education reform in the AI era, AI and processor chips, young women scientists’ participation in science, and quantum computing. They explored new opportunities for scientific research, talent cultivation, and international cooperation in the AI era.

This year’s summit placed greater emphasis on the growth needs of young scientists, with young talents under the age of 45 accounting for 88 percent of participants. It aimed to build a cluster of international journals, bring together young scientific talent, facilitate a batch of international collaborative projects and advance the application and commercialization of scientific and technological achievements. The summit released the Report on the Distribution and Mobility of Young Scientists in the Field of Embodied Intelligence, launched the World Young Scientist Summit Partner Journal Program and the 2026 World Young Scientist Innovation and Entrepreneurship Growth Support Program. It also published the “Young Scientist Pioneers 2035” list and announced the 2026 Sustainable Development Young Scientist Award. The awards were presented to four Chinese and foreign scientists.

Chen Tianrun, Founder of Hangzhou Moxin Technology Co., Ltd.; Yuan Yang, Assistant to the Dean of the Institute for Interdisciplinary Information Sciences at Tsinghua University; and two of the 2026 Sustainable Development Young Scientist Award winners, César de la Fuente and Nicola Segata, among other Chinese and foreign young scientist representatives, spoke at the flash-talk session to share their research practices and reflections.

In addition, the conference focused on fields such as future manufacturing, quantum information, embodied intelligence, brain-computer intelligence, environmental science, deep-sea resources, and life and health, and held 12 parallel forums. It also included the “Gravitation π” Future Technology and Concept Products Exhibition and Exchange, local thematic side events, and sci-tech and humanities study visits, further building an interdisciplinary, cross-regional and cross-sector platform for youth sci-tech exchange and cooperation.

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SOURCE China Daily