Oracle has reported a strong fiscal 2025 Q2 performance, with total revenues rising 9 percent year-over-year to $14.1 billion. A key contributor to this growth was the surge in demand for artificial intelligence (AI) capabilities, which significantly boosted Oracle Cloud Infrastructure (OCI) revenue.
Revenue $14.1 billion, up 9%
Remaining Performance Obligations $97 billion, up 49%
Cloud Revenue (IaaS plus SaaS) $5.9 billion, up 24%
Cloud Infrastructure (IaaS) Revenue $2.4 billion, up 52%
Cloud Application (SaaS) Revenue $3.5 billion, up 10%
Fusion Cloud ERP (SaaS) Revenue $0.9 billion, up 18%
NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20%
Oracle Cloud Infrastructure revenue jumped 52 percent, driven by a 336 percent increase in GPU consumption, a critical resource for training AI models.
Oracle operates the world’s largest AI supercomputer, scaling up to 65,000 NVIDIA H200 GPUs. This infrastructure supports training for some of the most advanced generative AI models globally.
Oracle signed a landmark agreement with Meta, enabling Meta to utilize Oracle’s AI Cloud Infrastructure and collaborate on AI Agents based on Meta’s Llama models.
AI Applications Boost Business Impact
Oracle’s integration of AI extends beyond infrastructure into practical applications:
Healthcare: AI Agents automate drug design, cancer diagnostics, and audio updates to electronic health records.
Agriculture: AI-powered satellite analysis predicts and improves crop yields.
Security: Real-time video analysis enhances safety in schools and financial systems by detecting fraud and biometric security threats.
Economic Development: AI tools accelerate scientific discovery and corporate growth.
The heightened AI demand has driven Oracle’s cloud revenue to surpass expectations, with projections indicating total cloud revenue exceeding $25 billion for the fiscal year. Oracle’s remaining performance obligation (RPO), a measure of future revenue commitments, rose 50 percent year-over-year to $97 billion.
Oracle CEO Safra Catz and Oracle Chairman Larry Ellison underscored AI’s transformative role in Oracle’s business, emphasizing its cost-effective and high-performance cloud services as a competitive edge.
