The paragraph details the opening remarks of Oracle Corporation's Fourth Quarter and Full Year 2025 Earnings Call. The call is led by Ken Bond, Head of Investor Relations, and features Lawrence Ellison, the Chairman and Chief Technology Officer, and Safra Catz, the CEO. Ken Bond advises that financial information, including a GAAP to non-GAAP reconciliation, is available on Oracle's Investor Relations website. He also highlights that the call will include forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. He cautions against placing undue reliance on these statements and advises reviewing Oracle’s recent reports for a comprehensive discussion of potential risks and factors affecting future results. Lastly, there is no obligation to update these statements with new information or future events.

In the prepared remarks, Safra Catz highlights Oracle's strong fiscal year-end results, with Q4 revenue and EPS exceeding expectations. The rapid reporting of financial results is credited to Oracle Fusion. Safra notes that the company's cloud transition has reached a tipping point, leading to accelerated revenue growth, particularly in cloud applications and infrastructure. The applications business leads in enterprise SaaS solutions, and with new AI agents and strong bookings, further growth is anticipated. Additionally, Oracle's infrastructure business, OCI, has seen high demand and is expected to grow over 70% this year, supported by the Oracle Autonomous Database and AI data platform.

The paragraph discusses Oracle's strong financial performance and growth in cloud services, driven by the increasing demand for AI-integrated databases. Oracle projects a significant revenue increase for fiscal year 2026, attributing it to the strength of their cloud applications and infrastructure services. The company highlights notable growth in its total cloud revenue, with specific increases in SaaS, IaaS, and cloud database services. Oracle's infrastructure cloud services are generating substantial revenue, and their Autonomous Database consumption is also rising sharply. As more on-premises databases transition to the cloud, Oracle expects cloud database revenues to be a key growth driver. The company is expanding its global cloud presence, offering flexibility to run Oracle databases across various cloud environments.

In the reported quarter, the company achieved $15.9 billion in total revenues, a 11% increase from the previous year, driven by growth in various segments: infrastructure subscription and SaaS revenues increased by 19% and 11% respectively, while application subscription revenues rose by 8%. Software license revenues also went up by 8% to $2 billion. Strategic back office SaaS applications saw a notable 20% growth with annualized revenues at $9.3 billion. The company's full fiscal year revenue was $57.4 billion, showing a 9% increase, with notable contributions from cloud services and license support revenues at $44 billion, up 12%. Cloud infrastructure revenue surged by 51%, while SaaS revenue for the year grew by 10% to $14.3 billion. Operating income increased by 7% for the quarter and 9% for the full year. Non-GAAP EPS was $1.70 for the quarter and $6.00 for the year. The remaining performance obligation (RPO) at the end of Q4 was $138 billion, up 41%, with a significant portion linked to cloud services. Operating cash flow for the year increased by 12% to $20.8 billion, but free cash flow was negative due to substantial capital expenditures.

The company plans significant capital expenditures (CapEx) primarily for revenue-generating equipment in data centers, anticipating over $25 billion in FY 2026 to address backlog demand. With $11.2 billion in cash and $9.4 billion in short-term deferred revenue, the company is dedicated to shareholder value through innovation, acquisitions, stock buybacks, dividend distributions, and prudent debt usage. Recently, they repurchased $150 million in shares and issued $4.7 billion in dividends over the past year, with a declared quarterly dividend of $0.50 per share. As FY 2026 begins, the company forecasts strong financial growth, projecting a 40% increase in cloud revenue and a 70% rise in cloud infrastructure revenue. Total revenue is expected to reach at least $67 billion, growing 16% in constant currency. The RPO is predicted to grow by over 100%, and the company is optimistic about exceeding FY 2027 and FY 2029 targets.

The paragraph outlines Oracle's optimistic financial outlook and growth targets, stating expectations for growth in total and cloud revenues, as well as non-GAAP EPS for Q1, based on constant currency and U.S. Dollars. It mentions potential currency and tax rate impacts on these figures. Oracle expresses its ambition to become the leading company in cloud applications, cloud databases, and cloud infrastructure. Lawrence Ellison emphasizes Oracle's strong position and future dominance in the cloud computing space, suggesting that Oracle will outscale its competitors in cloud infrastructure operations, while many of the world's valuable databases transition to various cloud platforms, including Oracle's.

The paragraph describes Oracle's advancements in AI and cloud computing, highlighting the introduction of Oracle 23AI, an AI data platform that enables seamless integration with popular AI large language models while ensuring data privacy. Oracle claims its broad suite of integrated AI agent-based applications spans various industries and its modern infrastructure minimizes labor costs. The company is set on expanding its cloud infrastructure, already seeing significant growth with a 51% increase in FY 2025 cloud infrastructure revenue. The text ends with Safra Catz and an invitation for questions, starting with Mark Moerdler from Bernstein.

In this paragraph, Lawrence Ellison discusses Oracle's strong performance and highlights the company's competitive edge in the AI sector. He emphasizes that Oracle has access to a vast amount of valuable data, much of which resides in Oracle databases, particularly the new AI-centric Oracle 23AI vector database. This technology allows companies to apply AI models, such as Grok, ChatGPT, and others from Google and Meta, to their own data, which is crucial for leveraging AI effectively. He stresses that Oracle's ability to integrate data from its applications with popular AI models in the Oracle Cloud differentiates them from other large software companies.

The paragraph discusses Oracle's focus on enabling enterprises to utilize their data and models securely and efficiently in the Oracle Cloud, emphasizing their unique position in the market. It highlights Oracle's database security, scalability, reliability, and ability to handle AI model data requirements. John DiFucci from Guggenheim seeks clarification from Safra Catz on a statement about Oracle's expected growth, specifically questioning whether the project Stargate contributes to the anticipated over 70% growth in Infrastructure as a Service (IaaS) and 100% growth in RPO by fiscal 2026. Safra Catz acknowledges the long relationship and notes that Stargate is still developing.

The paragraph highlights the significant growth and demand for the company's technology, especially in AI, databases, and applications. The company is forming numerous partnerships and has a robust pipeline of non-cancelable contracts, resulting in demand that exceeds their current supply capability. They are working to manage this by scheduling clients into the future. Larry Ellison notes that their cloud technology is superior to competitors, supporting large data volumes. He also mentions a massive contract with TIMU, a fast-growing company moving its infrastructure to Oracle Cloud, contributing to astonishing growth in multi-cloud environments.

The paragraph discusses Oracle's rapid transition to the cloud, emphasizing its database's AI capabilities and availability across multiple cloud platforms like Microsoft Azure, Amazon, and Oracle Cloud. This flexibility has encouraged customers to move their data to the cloud. The database business is experiencing growth from various sectors, including partnerships with companies like ByteDance and TikTok. Safra Catz and John DiFucci discuss the Stargate initiative, a future project potentially linked with OpenAI, which could impact Oracle's revenue growth. Lawrence Ellison mentions that if Stargate meets expectations, Oracle's RPO growth might be underestimated.

In the paragraph, Ben Reitzis from Melius Research questions Safra Catz and Larry Ellison about their unexpectedly high capital expenditure, which was $5 billion more than anticipated, reaching $21 billion. Safra and Larry explain that the increase was primarily due to investments in data center infrastructure and components for their unique computer systems to meet increased demand. Safra mentions that the projected $25 billion CapEx for the next year might be conservative due to the high volume of current orders. Larry adds that they recently received an unprecedented order requesting all available capacity globally, indicating significant demand growth.

The paragraph discusses the high demand for data center and high-speed networking infrastructure, which is outpacing supply. The speaker notes significant engineering investments to enhance speed, reliability, and cost-effectiveness. Despite efforts to reduce capital expenditures, CapEx is expected to rise due to the insatiable demand for capacity, with customers eager to accept available resources in any location. Additionally, the conversation shifts to cloud databases, highlighting strong growth in the database business and an increase in license purchases, which indicates customers' interest in transitioning to cloud services using their own licenses. Safra Catz emphasizes the healthy state of the database business and its role in driving expected growth for Oracle Cloud Infrastructure (OCI) by 2026.

The paragraph discusses Oracle's strong performance in its database and cloud services. The company is experiencing significant growth in database support, cloud consumption, and licensing, with increasing demand driven by the desire to leverage artificial intelligence. Lawrence Ellison highlights the financial potential of moving database support revenue to the cloud, projecting it could transform $10 billion into at least $50 billion in cloud revenue due to added costs for computers and networking. Raimo Lenschow from Barclays raises a question about Oracle's applications, noting a strong 22% growth in Fusion and a positive outlook, suggesting this area might not receive enough credit amid the focus on Oracle Cloud Infrastructure (OCI).

The paragraph discusses how tariffs have not impacted Oracle's business performance. Safra Catz explains that Oracle's strategic SaaS products, such as Fusion and NetSuite, are becoming increasingly popular as they provide essential AI capabilities, which on-premise ERP products cannot. These products are beginning to show strong performance despite being previously obscured by non-strategic products and the advertising business. Lawrence Ellison adds that some companies prefer Oracle's integrated, AI-driven application suites to avoid complications of using multiple vendors.

The paragraph discusses Oracle's strategy of offering a comprehensive suite of integrated cloud applications tailored for enterprises and government agencies. These applications, including ERP, EPM, supply chain management, human resources, and customer engagement, are designed to work seamlessly together, eliminating integration costs and providing a unified platform with consistent AI and analytics. Oracle aims to serve customers as a one-stop shop, reducing complexity and streamlining operations. As some companies struggle with transitioning to the cloud, Oracle is gaining their users. In addition to general applications, Oracle also caters to specific industries like health, banking, and hospitality.

The paragraph discusses Oracle's strategic advantage of having a comprehensive, integrated technology stack that spans from applications to infrastructure. Lawrence Ellison explains that developing applications on top of their own database has allowed Oracle to improve both the applications and the database itself, as insights gained from application development informed database enhancements. This approach has also facilitated the development of a robust cloud infrastructure. By having a full stack of technology, Oracle can optimize its products and remain competitive in the evolving computing landscape.

The paragraph discusses Oracle's advancements in cloud technology, focusing on the Oracle Autonomous Database. It describes plans to eventually rebrand their cloud as the "autonomous cloud," highlighting the benefits of using autonomous technology to reduce human labor, errors, and enhance security. Oracle's innovative use of database technology aims to make their cloud more scalable, reliable, and secure. The integration across various technology layers, including networking and computing, is positioned as a competitive advantage, offering a faster and more cost-effective solution compared to competitors. The paragraph concludes with a note on the availability of a telephonic replay of the conference call.

The operator announced the end of the conference and thanked attendees for participating, inviting them to disconnect.

This summary was generated with AI and may contain some inaccuracies.