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Forbes
6 days ago
- Business
- Forbes
Oracle's FY26 Revenue To Hit $67 Billion Backed By 70% Cloud Infra Growth
Oracle stock jumps to $215 as CEO raises guidance for cloud infra growth to 70% for FY26. Photo: ... More Sven Hoppe/dpa (Photo by Sven Hoppe/picture alliance via Getty Images) Oracle Corporation's (NYSE: ORCL) stock soared to $215 per share on Friday, June 13, 2025, climbing 22% after the database provider announced its FY25 results on June 11, 2025. The company outperformed analyst expectations, posting Q4 2025 revenue at $15.9 billion, up 11% year-on-year (y-o-y) driven by strong growth in its cloud services and licenses support revenue. For FY25, the company posted total revenue of $57.4 billion, an increase of 8% compared to last year. Adjusted net income for the year was $17.3 billion, or $6.03 per share. However, the highlight of the earnings release was the robust growth in the company's remaining performance obligations (RPO). The RPO stood at $138 billion at the end of FY25, $8 billion higher from the previous quarter and a 41% increase compared to last year. A solid RPO number not only provides visibility about the company's future revenues and profitability but is also indicative of the robust demand for its infrastructure services and a strong customer conversion rate. Oracle posted a strong Q4 2025 performance with total revenue at $15.9 billion, ahead of market expectations of $15.8 billion. Cloud services revenue, which includes infrastructure and applications, was $6.7 billion, 27% higher y-o-y. Infrastructure revenue soared to $3.0 billion, up 52% y-o-y, and application revenue rose to $3.7 billion, an improvement of 12% y-o-y. License support revenue was largely flat at $5 billion, while cloud license and on-premise license revenue increased to $2.0 billion, higher by 9% y-o-y. Non-GAAP earnings for the quarter stood at $1.70 per share, and GAAP earnings at $1.19 per share. For FY25, the company reported total revenue of $57.4 billion. Cloud services revenue rose to $24.5 billion, 24% higher y-o-y, while license support revenue was flat y-o-y at $19.5 billion. Cloud on-premise revenue for the year improved slightly to $5.2 billion. Non-GAAP operating income for FY25 was $25 billion, with operating margin of 44%, flat y-o-y, implying that the revenue growth did not come at the cost of profitability. Capital expenditure for 4Q 2025 and FY25 was $9.1 billion and $21.2 billion respectively. The company generated $20.8 billion in operating cash flow, up 12% from the previous year, which is likely to augment its plans to expand its global data center footprint. Oracle announced a cash dividend of $0.50 per share for Q4 2025 for outstanding common shares. The remaining performance obligation or RPO is the revenue that customers have committed to pay to a company for services that will be delivered by it in the foreseeable future. Oracle's RPO of $138 billion implies that at the current revenue rate of $57.4 billion, it has already secured two and a half years' worth of revenue, providing visibility into its future revenue and earnings. The main driver behind the surge in Oracle's RPO has been strong growth in its OCI business. Though Oracle joined the cloud infrastructure game a little late, it caught up fast. Oracle offers customized solutions to enterprise customers, saving their costs while providing them with higher flexibility. With a strategic focus on broadening its AI agent integration across applications, multi-cloud expansion, and accelerated infrastructure rollout, the company has been able to grow its OCI revenue sharply over the last couple of years. In Q4 2025, Oracle's OCI revenue stood at $3 billion, an increase of 52% y-o-y, while its competitors – Amazon Web Services, Google Cloud and Microsoft Azure– witnessed a moderate growth during the period. During the Q4 conference call, Oracle's CEO, Safra Catz, highlighted FY26 as a tipping point in the company's cloud transition journey. Given the continued demand for cloud applications and infrastructure, including database services, the management raised the FY26 revenue guidance to $67 billion, $1 billion higher than the previous guidance. Catz also showed strong optimism towards growth in its cloud business in FY26, with combined cloud growth (applications plus infrastructure) expected to grow over 40% in FY26, compared to 24% in FY25. Individually, the OCI business is estimated to grow from 50% in FY25 to over 70% in FY26. The company's large and loyal on-premise customer base is likely to provide a strong clientele for its infrastructure services. Addition of over 100 AI agents, a strong RPO and high renewal rate of its strategic SaaS products will be the primary drivers for OCI growth in FY26. With a sharp growth in OCI, the company's RPO is expected to more than double by the end of FY26. Further, the management estimates its annual capital expenditure to be north of $25 billion focused on building revenue-generating equipment for the expansion of data centers. For Q1 2026, Oracle's total revenue is expected to grow between 11% and 13% in constant currency terms. Total cloud revenue is estimated to grow in the range of 26% to 30%, while non-GAAP earnings are likely to increase by 4% to 6%. Oracle is a key partner in OpenAI's Stargate AI infrastructure project. The company's current RPO growth estimates do not consider the surge in demand expected from the Stargate project. With the project still in its nascent stages, the company has a huge upside potential from the project which has not been factored into its future growth and stock price. Additionally, the CEO highlighted that there is a demand-supply mismatch in the cloud infrastructure market. Oracle currently has 23 MultiCloud data centers globally, and plans to build 47 more over the next 12 months to meet the rising demand. In fact, it will soon have more data centers than all of its competitors combined. While this will result in a sharp jump in its capital expenditure in FY26, it will reap benefits for the company in the long term. Given a strong RPO, strategic focus on expanding its data center footprint, and ability to build an array of AI-enabled solutions, Oracle is optimistic about a much stronger performance in FY26 and beyond. In fact, the company, which was once just a database provider, is growing at a fast pace and is set fulfil its CEO's vision of becoming a leader in cloud and AI solutions soon.
Forbes
05-06-2025
- Business
- Forbes
Gold ETFs Record First Outflow Since November, Says World Gold Council
Photo by Sven Hoppe/picture alliance via Getty Images Global gold-backed exchange-traded funds (ETFs) endured their first outflow for five months in May as demand for riskier assets improved, latest World Gold Council (WGC) data shows. Total outflows came in at 19 tonnes and had a value of $1.8 billion, the body said. This pulled total physical holdings down to 3,541 tonnes. The WGC said that 'North America took the largest hit, and Asia reversed the strong momentum it experienced in April.' It added that 'funds in other regions experienced a small loss for the first time in six months,' though mind inflows into European funds continued. Inflows and outflows experienced by gold ETFs since mid-2023. Depressed further by the falling gold price, total assets under administration (AUMs) in bullion ETFs dropped to $374 billion in May from a record $379 billion the previous month. Gold fund inflows hit three-year peaks in April as market interest in safe-haven assets ignited. Yellow metal prices have since retreated from record highs above $3,500 per ounce in late April and were last at $3,384. Despite May's reversal, ETF flows remain positive for the year to date, the WGC noted. Inflows have totaled $30 billion since the start of 2025, while physical holdings have risen by 322 tonnes. In North America, funds endured their first negative month since January last month, according to the WGC. Holdings contracted 16 tonnes over the month to 1,813 tonnes. Outflows were valued at $1.5 billion, reducing regional AUMs to $191 billion. The organization said that 'the better-than-expected temporary easing of tariffs between the US and China improved investor risk appetite, which led to a strong rebound in equities, but lower safe-haven demand for gold.' It added that 'the market is now expecting higher rates by the end of 2025, leading to rising US Treasury yields and increasing the opportunity cost of holding gold.' This follows recent Federal Reserve minutes that showed the central bank is taking a more measured approach to future interest rate cuts. Meanwhile, Asian-located ETFs endured their first monthly reversal since November thanks to a $489 million outflow. Physical holdings dipped by five tonnes, to 315 tonnes. Cumulative AUMs reversed to 34 tonnes. According to the WGC, 'China led outflows as safe-haven demand diminished amid de-escalating trade tensions with the US and subsequent equity rebounds.' However, the body added that Japanese funds continued to increase, registering their eighth monthly inflow on the spin. Funds in other regions (excluding Europe) experienced a fall of less than half a tonne, resulting in month-end holdings of 70 tonnes. Outflows of $27 million slimmed AUMs to $7 billion, chiefly due to liquidations in Australia and South Africa. ETF activity in Europe bucked the broader trend, with holdings edging higher by two tonnes in May to 1,343 tonnes. Inflows were worth $225 million, pulling total AUMs to $142 billion. But continental performance was mixed, with the WGC commenting that 'inflows in France more than offset continued outflows from Germany and the UK.' It said that 'sluggish economic growth and weakening consumer sentiment; the Trump administration's escalation of tariff threats which attracted gold ETF inflows across Europe in late May; and intensifying fiscal concerns and political instability' all drove French gold demand last month.
Yahoo
03-06-2025
- Business
- Yahoo
Reports: Neestrup being tracked by Leipzig as well as Wolfsburg
Copenhagen coach Jacob Neestrup stands on the sidelines during the UEFA Champions League Group A soccer match between FC Copenhagen and FC Bayern Munich at the Telia Parken. RB Leipzig are considering FC Copenhagen boss Jacob Neestrup as a candidate for their vacant head coach position, according to media reports. Sven Hoppe/dpa RB Leipzig are considering FC Copenhagen boss Jacob Neestrup as a candidate for their vacant head coach position, according to media reports. The Dane has also been linked in the media with Bundesliga rival Wolfsburg. Advertisement Kicker and Sport Bild reported on Tuesday that Leipzig sporting director Marcel Schäfer had reached out to the 37-year-old. Leipzig, who missed out on Europe for the first time as a Bundesliga team, are searching for a successor to interim coach Zsolt Löw. The 46-year-old took over from the sacked Marco Rose in March but returned to Jürgen Klopp's global football strategy team at Red Bull after the season ended. Spaniard Cesc Fàbregas from Italian Serie A club Como and Crystal Palace's Austrian boss Oliver Glasner were viewed as top candidates for the Leipzig job, but both appear set to stay put.
Yahoo
29-05-2025
- General
- Yahoo
Stadium announcements by referees to be available in German football
a view of the scoreboard informing about refree's announcements during the German Bundesliga soccer match between Bayern Munich and Holstein Kiel at the Allianz Arena. Starting next season, in-stadium announcements by match referees are to be available in all stadiums in Germany's Bundesliga and second division, a spokesperson for the German Football League (DFL) said. Sven Hoppe/dpa Starting next season, in-stadium announcements by match referees are to be available in all stadiums in Germany's Bundesliga and second division, a spokesperson for the German Football League (DFL) said. The DFL football commission has issued a corresponding unanimous recommendation to the executive committee of organization. Approval is considered highly likely. Advertisement This year, the DFL did a trial of the system in nine stadiums in the first and second divisions. Referees would use the sound system to clarify their decisions to the public to lead to more transparency after video assistant referee (VAR) interventions. Including the German Cup matches, there were a total of 24 announcements by the referees. According to an interim report, the procedure and the technology worked well.
Yahoo
28-05-2025
- General
- Yahoo
Boateng mulls keeping his kids away from stadiums due to racism
Then Germany's footballer Jerome Boateng, stands at the regional court in Munich. Former Germany defender Jerome Boateng is considering not letting his children go to watch him play in stadiums in Austria after receiving racist abuse. Sven Hoppe/dpa Former Germany defender Jérôme Boateng is considering not letting his children go to watch him play in stadiums in Austria after receiving racist abuse. The 36-year-old joined LASK last year but accused his own fans of racist abuse towards him in the 1-0 loss at Grazer AK earlier this month. Advertisement "I've experienced it across my career - even in my youth. It was towards me recently, but it has also been against my team-mates with a different skin colour. It's not acceptable in any way," 2014 World Cup winner Boateng told Sport1 on Wednesday. "Racism has no place at all. You have to talk about it and not look away. Insults are one thing, but racist abuse is another level. There are children in the stadium - including mine. I have to think about whether I still let my children into the stadium."
