| Metric [USD Million] | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas             | **8,372**  **[0000950170-24-104905_orcl-20240831.htm:16]**  | **8,945**  **[0000950170-24-071916_orcl-ex99_1.htm:10]**  | **8,270**  **[0000950170-24-029904_orcl-20240229.htm:19]**  | **8,067**  **[0000950170-23-069682_orcl-20231130.htm:29]**  | **7,841**  **[0000950170-23-047713_orcl-20230831.htm:26]**  | N/A | **7,671**  **[0001564590-23-003413_orcl-10q_20230228.htm:24]**  | **7,786**  **[0001564590-22-039278_orcl-10q_20221130.htm:36]**  |
| EMEA                 | **3,228**  **[0000950170-24-104905_orcl-20240831.htm:16]**  | **3,539**  **[0000950170-24-071916_orcl-ex99_1.htm:10]**  | **3,316**  **[0000950170-24-029904_orcl-20240229.htm:19]**  | **3,170**  **[0000950170-23-069682_orcl-20231130.htm:29]**  | **3,005**  **[0000950170-23-047713_orcl-20230831.htm:26]**  | N/A | **3,067**  **[0001564590-23-003413_orcl-10q_20230228.htm:24]**  | **2,895**  **[0001564590-22-039278_orcl-10q_20221130.htm:36]**  |
| Asia Pacific         | **1,707**  **[0000950170-24-104905_orcl-20240831.htm:16]**  | **1,803**  **[0000950170-24-071916_orcl-ex99_1.htm:10]**  | **1,694**  **[0000950170-24-029904_orcl-20240229.htm:19]**  | **1,704**  **[0000950170-23-069682_orcl-20231130.htm:29]**  | **1,607**  **[0000950170-23-047713_orcl-20230831.htm:26]**  | N/A | **1,660**  **[0001564590-23-003413_orcl-10q_20230228.htm:24]**  | **1,594**  **[0001564590-22-039278_orcl-10q_20221130.htm:36]**  |

3f665285e0470507837cc6022b5e031f01d370c2916c5c37a3bfcf8b4f0bcb55

242c9809adf3bdcbff1f576a31dfc4af6d5c41d2f57fa41fb61dea3d0fa47a5f

30f160af46a72ae906bcfa447ceac1800b329425b2ac3041d466053c2101370b

Oracle Corporation is a leading technology company that operates through three main business segments: cloud and license, hardware, and services. The company provides a wide range of products and services, including cloud services, license support, engineered systems, and industry-specific hardware, to help customers access and optimize Oracle Cloud applications and infrastructure technologies **[0000950170-24-104905_orcl-20240831.htm:21]** **[0000950170-24-075605_orcl-20240531.htm:66]** **[0000950170-24-075605_orcl-20240531.htm:149]**. Oracle's business model emphasizes flexibility and interoperability, offering on-premise, cloud-based, and hybrid IT deployment models to meet diverse customer needs **[0000950170-24-104905_orcl-20240831.htm:21]** **[0000950170-24-075605_orcl-20240531.htm:66]**.

1. **Cloud and License** - Offers cloud services and license support, providing customers access to Oracle Cloud applications and infrastructure technologies, along with cloud license and on-premise license offerings **[0000950170-24-104905_orcl-20240831.htm:21]** **[0000950170-24-075605_orcl-20240531.htm:66]** **[0000950170-24-075605_orcl-20240531.htm:149]**.
2. **Hardware** - Involves the sale of Oracle Engineered Systems, servers, storage, and industry-specific hardware, along with related software and support services **[0000950170-24-075605_orcl-20240531.htm:79]** **[0000950170-24-075605_orcl-20240531.htm:68]**.
3. **Services** - Provides services to help customers maximize the performance of their Oracle applications and infrastructure technologies **[0000950170-24-075605_orcl-20240531.htm:149]** **[0000950170-24-029904_orcl-20240229.htm:18]**.

d656296734b8bc4067c84f7b7917e5e7117fefb6af1ae2f07fa21ec7b423e904

1. Oracle's CapEx is expected to double in fiscal year 2025 compared to FY24; given this significant investment, how does Oracle plan to manage the risk of underutilization if demand does not meet expectations, and what measures are in place to align CapEx with actual revenue growth?

2. OCI's impressive growth is largely driven by AI workloads, with GPU consumption up 336% in the quarter; how sustainable is this growth given the competitive landscape, and how does Oracle plan to maintain robust margins amidst potential pricing pressures and increased competition in AI infrastructure services?

3. Oracle's multi-cloud partnerships with Azure, Google, and AWS are still relatively new; could you elaborate on the challenges Oracle faces in expanding these partnerships, especially since these partners are also competitors, and how does this impact your strategy for migrating databases to the cloud?

4. With the Remaining Performance Obligation (RPO) reaching $97.3 billion but only 39% expected to be recognized over the next 12 months, is there concern about potential delays or cancellations affecting revenue recognition, and how does this impact Oracle's revenue visibility and predictability?

5. Given Oracle's substantial reliance on NVIDIA GPUs for AI workloads and the 336% increase in GPU consumption, how is the company addressing potential supply chain risks or dependency on a single hardware supplier, and what strategies are in place to mitigate these risks?

b2fa5e1e83611d8c4627e0ed60e1a6e799a10a50a4b2193aba522b0132bde679

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

20c25bed7fab51b67246c1b134be28d5b000cdd46d6dfef7f4772bcec6a082d9

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

d174e94dee6fbcee57f74878a5975a9907f19a9ec75caf571c5907eab697c895

- Adobe Systems Incorporated  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Alphabet Inc.  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Amazon.com, Inc.  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Cisco Systems, Inc.  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Intel Corporation  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- International Business Machines Corporation  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Microsoft Corporation  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Salesforce, Inc.  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- SAP SE  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Hewlett-Packard Enterprise  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Workday, Inc.  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Allscripts Healthcare Solutions, Inc. (following acquisition of Cerner Corporation)  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Arcadia Solutions (following acquisition of Cerner Corporation)  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- athenahealth, Inc. (following acquisition of Cerner Corporation)  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- Epic Systems Corporation (following acquisition of Cerner Corporation)  **[0000950170-24-075605_orcl-20240531.htm:25]** 
- InterSystems Corporation (following acquisition of Cerner Corporation)  **[0000950170-24-075605_orcl-20240531.htm:25]** 

8facf7d5e14efbc0cf5c9e405713e2763a220ba8f425bb8cc2e7054769a4e46b

Cloud and License

- Cloud Services and License Support

- Cloud License and On-Premise License

Hardware

Services

- Applications Cloud Services and License Support

- Infrastructure Cloud Services and License Support

Total Revenue

702a3b0ad15c9eeb93962b23feb2131b6f9a480ce535a76613b3b70332851941

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q2 2025 Earnings Call
- **Issued Period**: Q2 2025
- **Guided Period**: Q3 2025
- **Guidance**:
  - **Total Revenue Growth**: Expected to grow from **9% to 11%** in constant currency and **7% to 9%** in USD  **[ORCL_3411160_3]** .
  - **Total Cloud Revenue Growth**: Expected to grow from **25% to 27%** in constant currency and **23% to 25%** in USD  **[ORCL_3411160_3]** .
  - **Non-GAAP EPS Growth**: Expected to grow between **7% to 9%** and be between **$1.50 and $1.54** in constant currency; **4% to 6%** and be between **$1.47 and $1.51** in USD  **[ORCL_3411160_3]** **[ORCL_3411160_6]** .
  - **Currency Impact**: Expected to have a **$0.03 negative effect** on EPS and a **2% negative effect** on revenue  **[ORCL_3411160_3]** .
  - **Tax Rate**: Assumes a base tax rate of **19%**  **[ORCL_3411160_3]** .
  - **Investment Loss Impact**: EPS negatively impacted by **$0.05** due to an investment loss  **[ORCL_3411160_3]** .

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: Q2 2025
- **Guidance**:
  - **Total Revenue Growth**: Expected to grow from **7% to 9%** in constant currency and **8% to 10%** in USD  **[ORCL_3401113_3]** .
  - **Total Cloud Revenue Growth**: Expected to grow from **23% to 25%** in constant currency and **24% to 26%** in USD  **[ORCL_3401113_3]** .
  - **Non-GAAP EPS Growth**: Expected to grow between **6% to 10%** and be between **$1.42 and $1.46** in constant currency; **$0.08 to $0.12** and be between **$1.45 and $1.49** in USD  **[ORCL_3401113_3]** .
  - **Base Tax Rate**: Assumed to be **19%**  **[ORCL_3401113_3]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: Q1 2025 and FY 2025
- **Guidance**:
  - **Q1 2025 Guidance**:
    - **Total Revenue Growth**: Expected to grow from **6% to 8%** in constant currency; **5% to 7%** in USD  **[ORCL_3392209_4]** .
    - **Total Cloud Revenue Growth**: Expected to grow from **21% to 23%** in constant currency; **20% to 22%** in USD  **[ORCL_3392209_4]** .
    - **Non-GAAP EPS Growth**: Expected to grow between **11% to 15%** and be between **$1.33 and $1.37** in constant currency; **10% to 14%** and be between **$1.31 and $1.35** in USD  **[ORCL_3392209_4]** .
    - **Currency Impact**: Expected to have a **negative 1% effect** on revenue and a **$0.01 to $0.02 negative impact** on EPS  **[ORCL_3392209_4]** .
    - **Base Tax Rate**: Assumes a base tax rate of **20%**  **[ORCL_3392209_4]** .
  - **FY 2025 Guidance**:
    - **Cloud Infrastructure Services Growth**: Expected to grow faster than the **50%** reported in FY 2024  **[ORCL_3392209_4]** .
    - **CapEx**: Expected to be double what it was in FY 2024  **[ORCL_3392209_4]** .
  - **Beyond FY 2025**: Commitment to FY 2026 financial goals  **[ORCL_3392209_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  - **Total Revenues**: Including Cerner, expected to grow from **4% to 6%**; excluding Cerner, from **6% to 8%**  **[ORCL_3377579_3]** .
  - **Total Cloud Revenue**: Excluding Cerner, expected to grow from **22% to 24%**  **[ORCL_3377579_3]** .
  - **Non-GAAP EPS**: Expected to be down **2% to flat** and be between **$1.62 and $1.66**  **[ORCL_3377579_3]** .
  - **Base Tax Rate**: Assumed to be **19%**  **[ORCL_3377579_3]** .

0162575872d9d06d4be2e9aa222c39fef918d45eb3d2abb59a110f61faa717f3

| Name            | Position                                             | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------|------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Lawrence J. Ellison | Chairman of the Board of Directors and Chief Technology Officer | June 1977        | **Lawrence J. Ellison** founded Oracle in **June 1977** and served as CEO until September 2014. He has been Chairman and CTO since September 2014. He is Oracle's largest stockholder, owning approximately 41.6% of the shares  **[0000950170-24-075605_orcl-20240531.htm:26]** **[0001193125-24-226139_d860928ddef14a.htm:17]** . |
| Safra A. Catz   | Chief Executive Officer and Director                 | September 2014   | **Safra A. Catz** has been CEO since **September 2014**. She joined Oracle in 1999, served as President from January 2004 to September 2014, and was CFO at different intervals, most recently until September 2014. She has been a Director since October 2001  **[0000950170-24-075605_orcl-20240531.htm:26]** **[0000950170-24-075605_orcl-20240531.htm:27]** . |
| Jeffrey O. Henley | Vice Chairman of the Board of Directors             | September 2014   | **Jeffrey O. Henley** has been Vice Chairman since **September 2014**. He was a Director since June 1995, Chairman from January 2004 to September 2014, and EVP and CFO from March 1991 to July 2004  **[0001193125-24-226139_d860928ddef14a.htm:17]** **[0000950170-24-075605_orcl-20240531.htm:27]** .                                    |
| Edward Screven | Executive Vice President, Chief Corporate Architect   | May 2015         | **Edward Screven** has been with Oracle since **1986** and became EVP, Chief Corporate Architect in **May 2015**. He drives technology and architecture decisions across Oracle products and leads strategic initiatives  **[0000950170-24-075605_orcl-20240531.htm:26]** **[0000950170-24-075605_orcl-20240531.htm:61]** .               |
| Stuart Levey   | Executive Vice President, Chief Legal Officer         | October 2022     | **Stuart Levey** has been EVP, Chief Legal Officer since **October 2022**. Previously, he was CEO of Diem Association and Chief Legal Officer of HSBC Holdings, plc  **[0000950170-24-075605_orcl-20240531.htm:27]** **[0000950170-23-028914_orcl-20230531.htm:30]** .                                                                       |
| Maria Smith    | Executive Vice President, Chief Accounting Officer    | December 2022    | **Maria Smith** has been EVP, Chief Accounting Officer since **December 2022**. She was SVP, Corporate Controller from December 2020 to December 2022 and has been with Oracle since 1999  **[0000950170-24-075605_orcl-20240531.htm:27]** **[0000950170-23-028914_orcl-20230531.htm:30]** .                                                |

983c851ff076eb31319dd919d47740301ae6b94e0d04c8f44c94f3412f777c2f

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | Not specified   |
| End Date/Duration        | No expiration date  **[0000950170-24-134973_orcl-20241130.htm:55]** **[0000950170-24-134973_orcl-20241130.htm:15]**  |
| Total additional amount  | Not specified   |
| Remaining authorization amount | **$6.7 billion** as of November 30, 2024  **[0000950170-24-134973_orcl-20241130.htm:55]** **[0000950170-24-134973_orcl-20241130.htm:15]**  |
| Details                  | The program's pace depends on factors like working capital needs, cash requirements for acquisitions, dividend payments, debt obligations, stock price, and market conditions. It can be accelerated, suspended, delayed, or discontinued at any time.  **[0000950170-24-075605_orcl-20240531.htm:65]** **[0000950170-24-075605_orcl-20240531.htm:87]** **[0000950170-23-069682_orcl-20231130.htm:51]**  |

39b50a79f7f92f2178f53b5f83f6967be3a4e862617d438ca81816983703fcc1

Americas

EMEA

Asia Pacific

- United States

- United Kingdom

- Germany

- Japan

- Other countries

4a7419c907d9d1a89e26a846006b9b95dff7b7ddbcb2c5905465a552d3d49120

1. **CapEx Guidance Increase**  
   **Q:** What's the CapEx outlook given RPO growth?  
   **A:** Oracle plans to spend **$10 billion** on capital expenditures in fiscal year 2025 to build new data centers and expand existing ones, driven by significant demand growth reflected in an **$80 billion RPO**. This investment is crucial to meet customer demand and support future revenue growth.  **[ORCL_3377579_7]** **[ORCL_3377579_5]** 

2. **Infrastructure Demand & RPO Growth**  
   **Q:** Is IaaS growth due to shifting focus to large deals?  
   **A:** The **49% growth** in Infrastructure as a Service is from regular business, not from reallocating resources to large OCI deals, which is still to come. Oracle has enormous demand, with at least **40 new AI bookings over $1 billion** pending. The **$80 billion RPO** indicates accelerating demand exceeding current capacity.  **[ORCL_3377579_5]** 

3. **GPU Availability & Data Center Expansion**  
   **Q:** How is GPU availability affecting growth plans?  
   **A:** Oracle has a strong relationship with NVIDIA, ensuring good GPU access. The main challenge is building data centers quickly to meet demand, not GPU supply. Oracle is constructing massive data centers, like one in Salt Lake City large enough to park **eight 747s nose to tail**.  **[ORCL_3377579_7]** 

4. **Multi-cloud and Autonomous Database Adoption**  
   **Q:** What is customer reception of Oracle Database on Azure?  
   **A:** Customers are embracing Oracle Database in OCI running on Azure, signaling the end of "walled gardens." This multi-cloud approach preserves and expands Oracle's database franchise and drives adoption of the unique Autonomous Database technology, which competitors are not attempting to replicate.  **[ORCL_3377579_8]** 

5. **Interest in Alloy & Sovereign Clouds**  
   **Q:** How is Alloy impacting OCI growth internationally?  
   **A:** There's high interest in Alloy in markets valuing data sovereignty. In Japan, companies like NRI are reselling Oracle Cloud, even running critical applications like the Tokyo Stock Exchange. Oracle expects every government to want a sovereign cloud and is negotiating sovereign regions with national governments, potentially leading to more data centers than other hyperscalers combined.  **[ORCL_3377579_9]** 

6. **Government Solutions & Starlink Partnership**  
   **Q:** How is Oracle involved in "government in a box" solutions?  
   **A:** Oracle is partnering with Starlink to deliver comprehensive government solutions, including internet services across entire countries like Serbia, Kenya, and Rwanda. These initiatives modernize sectors like healthcare and agriculture using AI and cloud technologies, representing significant new opportunities.  **[ORCL_3377579_10]** 

7. **Cerner Migration to OCI**  
   **Q:** What are the implications of moving Cerner to OCI?  
   **A:** Migrating Cerner to OCI has saved substantial costs, improved security against ransomware, and enabled rapid modernization. Oracle can now update Cerner applications on a three-month cadence, delivering new features without reimplementation, enhancing value for customers.  **[ORCL_3377579_6]** 

ef6754423e40977b4f9fbae34b5151981bf57de3d7d1c41cce240ced024093e2

**Quarterly guidance for Q3 2025:**
- **Total Revenue Growth (constant currency)**: 9% to 11%  **[ORCL_3411160_3]**  (raised from 7% to 9%  **[ORCL_3401113_3]** )  
- **Total Revenue Growth (USD)**: 7% to 9%  **[ORCL_3411160_3]**  (lowered from 8% to 10%  **[ORCL_3401113_3]** )  
- **Total Cloud Revenue Growth (constant currency)**: 25% to 27%  **[ORCL_3411160_3]**  (raised from 23% to 25%  **[ORCL_3401113_3]** )  
- **Total Cloud Revenue Growth (USD)**: 23% to 25%  **[ORCL_3411160_3]**  (lowered from 24% to 26%  **[ORCL_3401113_3]** )  
- **Non-GAAP EPS Growth (constant currency)**: 7% to 9%  **[ORCL_3411160_3]** **[ORCL_3411160_6]**  (no change from prior guidance  **[ORCL_3401113_3]** )  
- **Non-GAAP EPS Growth (USD)**: 4% to 6%  **[ORCL_3411160_3]** **[ORCL_3411160_6]**  (lowered from 8% to 12%  **[ORCL_3401113_3]** )  
- **Non-GAAP EPS (constant currency)**: $1.50 to $1.54  **[ORCL_3411160_3]** **[ORCL_3411160_6]**  (raised from $1.42 to $1.46  **[ORCL_3401113_3]** )  
- **Non-GAAP EPS (USD)**: $1.47 to $1.51  **[ORCL_3411160_3]** **[ORCL_3411160_6]**  (raised from $1.45 to $1.49  **[ORCL_3401113_3]** )  
- **Tax Rate**: 19%  **[ORCL_3411160_3]**  (no change from prior guidance  **[ORCL_3401113_3]** )  
- **Currency Impact**: $0.03 negative effect on EPS and a 2% negative effect on revenue  **[ORCL_3411160_3]**  (no prior guidance)  
- **Investment Loss Impact**: EPS negatively impacted by $0.05  **[ORCL_3411160_3]**  (no prior guidance)  

e47f5f78648c35be61707bc98933fa32eb0b5be102bb1fc166feb465748dfcda

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002       | Present  | Current auditor   |  **[0000950170-24-075605_orcl-20240531.htm:104]**  |

9ac85a0e433af8d27edb2228e5ed878243abadbe9f993c47f2d21ca999683a8d

a44fdc7c439078195f3c880f152d6cf551cd40f524d387609de84f5959155035

- Total Revenue: $14.059B (+9% YoY)  **[0000950170-23-069682_orcl-20231130.htm:18]** **[0000950170-24-134973_orcl-20241130.htm:36]** **[0000950170-24-134973_orcl-20241130.htm:38]** **[0000950170-24-134973_orcl-20241130.htm:40]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Cloud & License: $12.001B (+11% YoY)  **[0000950170-23-069682_orcl-20231130.htm:18]** **[0000950170-24-134973_orcl-20241130.htm:36]** **[0000950170-24-134973_orcl-20241130.htm:38]** **[0000950170-24-134973_orcl-20241130.htm:40]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Cloud Services and License Support: $10.806B (+12% YoY)  **[0000950170-23-069682_orcl-20231130.htm:5]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Operating Income (EBIT): $4.22B (+17% YoY)  **[0000950170-23-069682_orcl-20231130.htm:5]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Net Income: **$3.151B (+26% YoY)**  **[0000950170-23-069682_orcl-20231130.htm:5]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Diluted EPS: $1.10 (+24% YoY)  **[0000950170-23-069682_orcl-20231130.htm:5]** **[0000950170-24-134973_orcl-20241130.htm:5]**   
- Americas: $8.933B (+11% YoY)  **[0000950170-23-069682_orcl-20231130.htm:19]** **[0000950170-24-134973_orcl-20241130.htm:30]**   
- EMEA: $3.381B (+7% YoY)  **[0000950170-23-069682_orcl-20231130.htm:19]** **[0000950170-24-134973_orcl-20241130.htm:30]**   

d9485deb6d22645dbe7cb9636d8d6f8a598638efb04756479bd8b0ee71269e38

df0615df71ce8b18a9d79c434fb490960b39d9e28cae1c4507ba34f0915b0010

Free Cash Flow (USD millions)

8ce033a0cfdfbe5a9dd3becbcf9ca1031a5b3951b28747d801f3493d6ad9c7c1

| Year | Amount Due (Billions) | Debt Type               | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|-----------------------------|-----------------------|-------------------------------------------------------------------------------------|
| 2024     | 2.0 **[0000950170-24-134973_orcl-20241130.htm:49]**               | Senior Notes               | N/A                   | 2.3% = (2.0 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]**                                       |
| 2025     | 3.5 **[0000950170-24-134973_orcl-20241130.htm:49]**               | Senior Notes               | N/A                   | 4.0% = (3.5 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]**                                       |
| 2025     | 2.5 **[0000950170-24-134973_orcl-20241130.htm:49]**               | Senior Notes               | N/A                   | 2.8% = (2.5 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]**                                       |
| 2029     | 1.5 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**       | 4.20% Senior Notes         | 4.20 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**  | 1.7% = (1.5 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**                               |
| 2034     | 1.75 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**      | 4.70% Senior Notes         | 4.70 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**  | 2.0% = (1.75 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**                              |
| 2054     | 1.75 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**      | 5.375% Senior Notes        | 5.375 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]** | 2.0% = (1.75 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**                              |
| 2064     | 1.25 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**      | 5.50% Senior Notes         | 5.50 **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**  | 1.4% = (1.25 / 88.624) * 100 **[0000950170-24-134973_orcl-20241130.htm:4]** **[0000950170-24-134973_orcl-20241130.htm:49]** **[0000950170-24-134973_orcl-20241130.htm:13]**                              |

62268bf9cf5b267a55759da34b47d9dfba2db1226f07be9a662b4cdbc79f00a9

- Oracle's ability to convert its strong **44% increase** in Remaining Performance Obligations (RPO) into revenue is contingent on rapidly expanding its cloud infrastructure capacity. Any delays or challenges in scaling up capacity could hinder revenue realization.  **[ORCL_3392209_6]**
- The plan to **double capital expenditures** in fiscal year 2025 to meet cloud demand introduces financial risk. If the anticipated demand, particularly from AI workloads, does not materialize as expected, the substantial increase in CapEx could pressure margins and reduce free cash flow.  **[ORCL_3392209_4]**
- Oracle's aggressive expansion into building some of the world's largest data centers introduces execution risks. Managing and automating thousands of data centers at such scale is complex, and any missteps could lead to operational inefficiencies or security vulnerabilities, potentially impacting financial performance.  **[ORCL_3392209_9]** **[ORCL_3392209_7]**

a31ea0632dbfe035cec5c9ab4d91b7efd149c2581d312d3ee4227d37cc0fa747

- **Oracle Cloud Infrastructure (OCI) is experiencing significant growth, with gross margins improving as it scales**, indicating increasing profitability in this business segment.  **[ORCL_3411160_10]**  Safra Catz highlighted that OCI's margins continue to improve due to software-driven optimization and automation, leading to better operating margins.  **[ORCL_3411160_10]**
- **Cloud database services revenue grew 28%, reaching an annualized revenue of $2.2 billion**, with multi-cloud database services on AWS, Azure, and Google growing from zero to over $100 million run rate and expected to become a multibillion-dollar business.  **[ORCL_3411160_6]**  Lawrence Ellison emphasized that multi-cloud will be a rapidly growing multibillion-dollar business for Oracle.  **[ORCL_3411160_6]**
- **Strong demand and expanding pipeline for Oracle's cloud services, including OCI**, with capacity coming online to meet this demand, leading to expected acceleration of revenue growth in the second half of the year.  **[ORCL_3411160_9]**  Safra Catz mentioned that Remaining Performance Obligation (RPO) is expected to increase due to the signing of large contracts.  **[ORCL_3411160_9]**

8880960faeec5661fb9a316898e2a751096ea2f6e337fc1959a05a20b90d426c

- **Oracle is uniquely providing sovereign cloud and dedicated cloud regions** to governments and large enterprises, an area where competitors do not operate, leading to significant new growth opportunities.  **[ORCL_3377579_9]**
- **Oracle's Infrastructure as a Service (IaaS) revenue grew 49%**, driven by enormous demand, and they have over **40 new AI bookings over $1 billion** that haven't come online yet, indicating strong future revenue growth.  **[ORCL_3377579_5]**
- **Oracle's advancements in AI applications and Autonomous Database**, including integrating generative AI across applications and reengineering solutions like **Cerner** to leverage AI, are expected to drive demand and adoption across multiple clouds, maintaining their leadership position.  **[ORCL_3377579_10]** **[ORCL_3377579_8]** **[ORCL_3377579_6]**

93e4168241e32ad0127a0772dd7bd377e858acc35d84e6bc21f3fab42597972d

1. **OCI Growth and CapEx Outlook**  
   **Q:** How does OCI's architecture affect CapEx growth over next 5 years?  
   **A:** Oracle's OCI uses modular, standardized racks, allowing them to build data centers starting at under **50 kilowatts** up to **1.6 gigawatts**, making them easy and cheap to manufacture and automate. This flexibility lets them match CapEx closely with revenue, avoiding long periods with empty centers, and expand data center regions more efficiently than competitors, favorably impacting CapEx growth over the next five years.  **[ORCL_3411160_5]** 

2. **Database Migration to Cloud and Multi-Cloud Strategy**  
   **Q:** What's the progress on database migration to cloud and revenue outlook?  
   **A:** Cloud database services have grown to an annualized revenue of **$2.2 billion**, mostly from OCI. Multi-cloud partnerships have grown from zero to over **$100 million** run rate, expected to exit with hundreds of millions and become a multibillion-dollar business. Oracle sees enormous customer demand for migrating databases to the cloud, including dedicated regions for regulatory or sovereignty reasons, an offering only they have.  **[ORCL_3411160_6]** 

3. **OCI Gross Margins Improvement**  
   **Q:** How are OCI gross margins progressing amid growth?  
   **A:** OCI's gross margins continue to improve due to Oracle's automation and software optimizations. Despite perceptions that GPU or base infrastructure businesses are less profitable, their margins in OCI are increasing with scale, even as they invest. Operating margins in OCI have improved again, contributing to overall profitability enhancements.  **[ORCL_3411160_9]** 

4. **AI Infrastructure and GPU Clusters**  
   **Q:** Are there diminishing returns in scaling GPU clusters for AI?  
   **A:** Oracle believes speeding up AI training involves not just larger GPU clusters but also faster networks to move data efficiently. They invest heavily in network software and hardware to avoid bottlenecks, ensuring GPU clusters aren't idle waiting for data. As networks get faster, AI training accelerates without diminishing returns, maintaining their leadership in AI infrastructure.  **[ORCL_3411160_7]** 

5. **SaaS Business Growth**  
   **Q:** What's driving strong growth in SaaS, especially back office systems?  
   **A:** There's significant interest in back office systems as companies seek efficiency. Oracle's SaaS growth is fueled by demand for automation, simplification, and AI capabilities that help businesses spend less and serve customers better. Booking trends have taken a marked step-up, accelerating significantly from last year, indicating robust growth in both back and front office SaaS offerings.  **[ORCL_3411160_8]** 

382f5a5bf54eb964090ca74dfe7243637163f668e591532336ad1e28c7a73486

- **Oracle's Infrastructure Cloud Services revenue increased by 46%**, reaching **annualized revenues of $8.6 billion**, with **OCI consumption revenue up 56%**; demand continues to outstrip supply, indicating strong market acceptance and growth potential.  **[ORCL_3401113_2]**
- Oracle's **multi-cloud strategy**, partnering with **AWS, Microsoft Azure, and Google Cloud**, allows customers to use Oracle's latest database technology in any cloud, which **"will turbocharge the growth of our database business for years to come"**.  **[ORCL_3401113_4]** **[ORCL_3401113_8]**
- Moving to the **Autonomous Database** brings significant efficiencies; Oracle expects **cost savings of around 50%** for moving Fusion and NetSuite to Autonomous Database, leading to **stunningly high margins** comparable to SaaS margins, enhancing profitability.  **[ORCL_3401113_5]**

8651d5527cc2fbda87433c1a79fc5b04c5815204064a15e94809039747d3d028

- **The transition to cloud database services is still in its early stages**, with Safra Catz stating that the migration is "only at the beginning," suggesting potential delays in revenue contributions from this segment.  **[ORCL_3411160_6]**
- **There were corrections and miscommunications regarding Non-GAAP EPS guidance during the call**, with Safra Catz needing to correct her statements, which could raise concerns about management's communication clarity.  **[ORCL_3411160_6]**
- **Analysts express skepticism about the profitability of the GPU and base infrastructure businesses**, questioning if these segments are "not as profitable," despite claims of margin improvements.  **[ORCL_3411160_10]**

8bf4a19c4c98b7aa9824ee147fafd1c53615529524e4b080d5136c7ca70071b3

- *1. Oracle's Cloud Infrastructure (OCI) is experiencing remarkable growth, driven by high demand for AI workloads and multi-cloud partnerships.** Oracle signed contracts with 30 AI customers for **$12.5 billion** in new AI business. Revenue from Oracle Database@Azure is expected to be **10x higher in Q1** and potentially **30x higher in Q2** compared to Q4. This growth is incremental and significantly adds to Oracle's revenue.  **[ORCL_3392209_11]**
- *2. Oracle's unique ability to offer flexible deployment models, including dedicated on-premise cloud regions, gives it a competitive advantage.** Oracle can deploy a full Oracle Cloud region within a customer's data center, providing all services without compromises on security or functionality—a capability competitors do not offer. This flexibility attracts customers, especially those requiring data sovereignty and enhanced security.  **[ORCL_3392209_9]**
- *3. Oracle is investing heavily in building both small and extremely large data centers to meet the growing demands of AI training, positioning itself as a leader in AI infrastructure.** Oracle is constructing data centers up to **200-megawatts**, with plans for facilities approaching **1 gigawatt**. These state-of-the-art centers cater to large-scale AI model training and have attracted high-profile customers like OpenAI.  **[ORCL_3392209_7]**

1139f9fc116eb37eaa13142393d40410e88b5ca6de36976842b3d41c3a5b58d4

- **Oracle plans to significantly increase capital expenditures to approximately $10 billion in fiscal year 2025**, up from $7–$7.5 billion in the current fiscal year, to build new data centers and expand existing ones, which could pose execution risks and strain financial resources.  **[ORCL_3377579_7]**
- **The aggressive expansion into building some of the world's largest data centers**, including AI data centers where construction delays and supply constraints are already being experienced, may lead to overcapacity and impact profitability if demand does not meet expectations.  **[ORCL_3377579_5]** ,  **[ORCL_3377579_7]**
- **Oracle's success is heavily dependent on the availability of critical components like GPUs and infrastructure such as power and communication links**, and any shortages or delays could hinder their ability to meet customer demand and achieve projected growth.  **[ORCL_3377579_5]** ,  **[ORCL_3377579_7]**

508d4f64c58796b4f287a3f9055a19d61e6cb8b09f780e2d611ad3a61a269cdd

- **Margin Pressures from OCI's Growth:** Oracle's expansion in **lower-margin** OCI (Oracle Cloud Infrastructure) could pressure overall profitability. Analyst John DiFucci expressed concerns, stating that OCI numbers "look really difficult to do to say the least," and questioned how to think about overall margins as the business continues to lean into OCI.  **[ORCL_3401113_5]**
- **Supply Constraints Impacting Revenue Conversion:** Oracle is experiencing **supply constraints**, with demand outstripping supply, potentially affecting the timely conversion of backlog into revenue. CEO Safra Catz acknowledged, "we have enormous demand... And I will say that **demand is still outstripping supply**."  **[ORCL_3401113_10]**
- **Significant Capital Expenditures for AI and Data Centers:** Oracle's plans for **massive capital expenditures** to build large data centers and invest in AI could impact financials if returns are not as expected. Larry Ellison mentioned designing data centers over a **gigawatt**, possibly powered by **nuclear reactors**, and stated that competing in AI could require investments of around **$100 billion** over the next 4-5 years.  **[ORCL_3401113_7]**

04bb8e5683c66803709cb31ab602ab4683c2bb2eeffb1cd784c5d3c204b7a690

1. **AI and Database@Azure Revenue Impact**  
   **Q:** How will AI and Database@Azure contribute to future revenue?  
   **A:** Safra Catz explained that both AI and Database@Azure are **incremental** to current revenues, with minimal impact in Q4. The Database@Azure centers are just going live, so Q1 revenue will be **10x** higher, and Q2 could be **30x** higher. The AI contracts signed at the end of Q3 and Q4 are much larger and will significantly boost revenue in fiscal '25.  **[ORCL_3392209_11]** 

2. **OpenAI Partnership and AI Data Centers**  
   **Q:** Can you provide details on the OpenAI partnership?  
   **A:** Lawrence Ellison stated that Oracle is building a **very large data center**, dedicating half of it to OpenAI, equipped with numerous **NVIDIA chips** for AI training. The training goes beyond language models to include neural networks trained with images, addressing more complex problems like image interpretation for medical diagnostics.  **[ORCL_3392209_10]** 

3. **OCI Deployment Models and Competitive Advantage**  
   **Q:** How does OCI's deployment flexibility provide an advantage?  
   **A:** Ellison highlighted that Oracle uniquely offers customers the full Oracle Cloud on-premises, allowing medium-sized clients to have a private cloud with all services and no neighbors. This provides unmatched security and scalability, from small to very large deployments—even on ships and submarines. The highly automated cloud is designed for thousands of regions, enhancing security and operational efficiency.  **[ORCL_3392209_9]** 

4. **Multi-Cloud Strategy and AWS Partnership**  
   **Q:** Will there be a similar partnership with AWS like with Azure and Google?  
   **A:** Ellison emphasized that Oracle believes in giving customers choice and is open to interconnecting with AWS to provide seamless multi-cloud experiences. Oracle is already integrated with Microsoft and Google, enabling customers to mix and match services across clouds, reducing costs and latency.  **[ORCL_3392209_8]** 

5. **OCI Innovation Roadmap and Future Growth**  
   **Q:** Why will Oracle continue winning in the AI and cloud market?  
   **A:** Ellison explained that Oracle is building both the smallest and the largest data centers, including a **200-megawatt** data center for AI training, with plans for even larger facilities approaching **1 gigawatt**. Oracle's ability to deliver scalable, highly advanced data centers with fast networks and modern technologies positions it ahead of competitors.  **[ORCL_3392209_7]** 

6. **Strong RPO and Revenue Bridge**  
   **Q:** How should we bridge the strong RPO to revenue?  
   **A:** Safra Catz indicated that the strong RPO is tied to Oracle's capacity expansion. As new capacity comes online globally, large workloads are activated, and revenue is recognized. The timing is based on Oracle's schedule for bringing data centers live, with customers ready to transition once capacity is available.  **[ORCL_3392209_6]** 

b7e4ee78654bc84cb740a8e53bc086cecb279e15f01a07004bbc801bb6a9dc29

1. **Margin Outlook**  
   **Q:** How should we think of overall margins going forward?  
   **A:** Management explains that despite OCI being lower margin today, margins are improving due to the expansion of the Autonomous Database within OCI and multi-cloud agreements.  **[ORCL_3401113_5]**  The business is achieving real scale, and automation in OCI leads to higher efficiency and lower costs.  **[ORCL_3401113_5]**  Larry Ellison adds that moving Fusion and NetSuite to the Autonomous Database reduces human labor costs and increases security, resulting in "stunningly high" margins, potentially around **50%** cloud cost savings.  **[ORCL_3401113_5]** **[ORCL_3401113_6]** 

2. **AI Market Outlook**  
   **Q:** How do you view the transition from AI training to inference?  
   **A:** Larry Ellison believes that training AI models is an ongoing process requiring immense compute resources.  **[ORCL_3401113_7]**  He notes that the entry price for a frontier AI model is about **$100 billion** over the next 4–5 years.  **[ORCL_3401113_7]**  Oracle is designing data centers exceeding a gigawatt, including those powered by small modular nuclear reactors, to meet this demand.  **[ORCL_3401113_7]**  He sees the AI business growing larger with no slowdown.  **[ORCL_3401113_7]** 

3. **Database Cloud Migration**  
   **Q:** How will agreements with hyperscalers impact database migration?  
   **A:** Oracle's database is now available in AWS, Microsoft, and Google clouds, which will accelerate database growth in the public cloud.  **[ORCL_3401113_8]**  Larry Ellison believes private clouds will greatly outnumber public clouds, as companies may prefer Oracle's private cloud behind their firewall.  **[ORCL_3401113_8]**  Oracle expects to have over **1,000** data centers, winning whether customers choose public or private cloud.  **[ORCL_3401113_8]** 

4. **Monetizing AI Applications**  
   **Q:** Where is the monetizable value of GenAI on the app side?  
   **A:** Larry Ellison explains that AI is integral to Oracle's applications, especially in healthcare.  **[ORCL_3401113_9]**  AI assists in diagnostics, automates health record updates, and generates summaries for doctors.  **[ORCL_3401113_9]**  He emphasizes that AI is not sold separately but is embedded in applications, which will primarily be AI-driven.  **[ORCL_3401113_9]** 

5. **Data Center Expansion**  
   **Q:** How are you addressing supply constraints to meet demand?  
   **A:** Oracle acknowledges that demand is outstripping supply but is expanding capacity and has implemented automation to set up data centers more efficiently.  **[ORCL_3401113_10]**  They are rapidly growing in public and private cloud deployments.  **[ORCL_3401113_10]**  Their data centers are fully automated and identical in function, enabling management of thousands of data centers.  **[ORCL_3401113_10]**  Senior management with utilities experience is aiding in building large-scale projects.  **[ORCL_3401113_10]** 

6. **Security Advantages**  
   **Q:** How is being more secure helping win large OCI deals?  
   **A:** Larry Ellison emphasizes that security is a major advantage for Oracle.  **[ORCL_3401113_11]**  They are eliminating passwords in favor of biometric authentication.  **[ORCL_3401113_11]**  Oracle is introducing "Zero Trust Packet Routing" technology to secure network communications.  **[ORCL_3401113_11]**  Automation reduces human error, and their Autonomous Database removes the risk of configuration mistakes.  **[ORCL_3401113_11]**  These security measures are helping Oracle win large OCI deals, especially with governments.  **[ORCL_3401113_11]** 

bda5937d5b05fb6ddd18b178fcfe6eded509e13c3ca7c1f6e7881f7f93535a49

Oracle Corp (ORCL)

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