Source URL: https://www.theregister.com/2025/03/11/oracle_q3_2025/
Source: The Register
Title: Oracle yet to sign a Stargate contract or predict revenue from AI mega-build
Feedly Summary: Guessed tax obligations wrong which helped to disappoint Wall Street even as sales boomed
Oracle on Monday announced customers committed to $48 billion of future cloud services consumption – just $5 billion less that its annual revenue for FY 2024 – but investors aren’t impressed.…
AI Summary and Description: Yes
Summary: The provided text highlights Oracle’s significant future cloud services commitments, their navigating financial results, and the implications of their investments in AI-driven infrastructure. The report underscores the growing role of AI and cloud computing in Oracle’s strategic direction, which is relevant for professionals focusing on cloud and infrastructure security.
Detailed Description: The text details Oracle’s recent financial performance and projections for cloud services consumption as well as its investment in AI infrastructure.
– **Cloud Consumption Commitment**: Oracle announced customer commitments totaling $48 billion for future cloud services, which is nearing their expected annual revenue for FY 2024.
– **Earnings Report**: Despite a year-over-year revenue growth of 6% to $14.1 billion and a net income of $2.9 billion (up 22%), Oracle’s performance fell short of Wall Street predictions, causing a decline in share price.
– **Operational Efficiency**: CEO Safra Catz emphasized the efficiency of their reporting using their own Fusion ERP system, allowing them to file financial statements faster than competitors while addressing challenges related to forecasting errors.
– **Remaining Performance Obligation (RPO)**: Oracle has $130 billion in RPO, indicating strong future demand for cloud services.
– **Infrastructure Expansion**: The company is actively expanding its cloud infrastructure, having opened its 101st cloud region and expecting to double its available power capacity by the end of the fiscal year 2024 and triple by 2025. This expansion is crucial for meeting the increasing demand for cloud services.
– **AI Data Centers and Stargate Project**: Oracle is working on data centers to support the Stargate Project, a collaboration with OpenAI, even though no revenue has been generated yet. This initiative is anticipated to significantly enhance Oracle’s RPO.
– **Automation in Data Centers**: Larry Ellison highlighted the importance of automation in reducing labor costs and minimizing human error, contributing to more reliability and security in their operations.
– **Growth Segments**: Infrastructure-as-a-Service (IaaS) has emerged as Oracle’s fastest-growing segment, with a 49% increase year over year. Additionally, Oracle’s AI training infrastructure is experiencing rapid growth.
– **Future Projections**: Oracle’s leadership expressed confidence in achieving a revenue target of $66 billion for FY 2026, with a growth rate expectation of 15-20% in the coming years.
The insights underline the significance of cloud services and AI in Oracle’s growth strategy, suggesting important considerations for security and compliance professionals in both areas. As Oracle expands its cloud capabilities and integrates AI solutions, attention to security measures and compliance with relevant regulations will become increasingly prominent in their operational landscape.