Oracle: Durable Growth Can Deliver Good Returns
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Oracle's Q3 FY2025 results show strong revenue growth, with cloud services up 10% y/y and total revenue up 6% y/y to $14.1 bn. Despite negative FCF, Oracle increased its dividend and executed $150 million in share buybacks, indicating confidence in future cash flow improvements. Oracle's RPO surged to $130 bn, a 63% y/y increase, driven by demand and excluding contributions from Project Stargate.
March 13, 2025 | 1:00 pm
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Oracle's Q3 FY2025 results show strong revenue growth, with cloud services up 10% y/y and total revenue up 6% y/y to $14.1 bn. Despite negative FCF, Oracle increased its dividend and executed $150 million in share buybacks, indicating confidence in future cash flow improvements. Oracle's RPO surged to $130 bn, a 63% y/y increase, driven by demand and excluding contributions from Project Stargate.
Oracle's strong revenue growth and increased RPO indicate robust demand for its services. The decision to increase dividends and execute share buybacks despite negative FCF suggests management's confidence in future cash flow improvements. These factors are likely to positively impact Oracle's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100