What you need to know before Oracle’s earnings report on Monday

Key conclusions

Oracle plans to report its fiscal first-quarter financial results on Monday after the close of trading.
The company has high hopes for cloud infrastructure growth in fiscal year 2025.
The stock hit a record high after the company announced deals with Microsoft and OpenAI in June and reported its latest quarterly results.

Oracle (ORCL) is set to report its fiscal 2025 first-quarter results after the market closes on Monday, with investors likely to be looking at the company’s cloud infrastructure growth.

The software giant is expected to report revenue of $13.23 billion, up more than 6% year over year, with earnings per share of 91 cents, up from 86 cents a year earlier, according to Visible Alpha. Net income is expected to be $2.57 billion.

	Analysts’ estimates for Q1 2025	Q4 2024	Q1 2024
Income	$13.23 billion	$14.29 billion	$12.45 billion
Diluted earnings per share	91 cents	1.11 dollars	86 cents
Net income	$2.57 billion	$3.14 billion	$2.42 billion

Key Metric: Oracle Cloud Infrastructure Revenue

Oracle shares hit a record high in June when the company announced cloud infrastructure deals with Microsoft (MSFT), OpenAI and Alphabet’s (GOOGL) Google along with its fiscal fourth-quarter results. Oracle shares, which were down slightly on Friday, are up about 35% this year.

Oracle Cloud Infrastructure (OCI) revenue hit $2 billion in the latest quarter, and the company is forecasting more than 50% year-over-year growth in fiscal 2025. Analysts on average are predicting $2.18 billion for the quarter, up 44% year-over-year, according to Visible Alpha. A shortage of artificial intelligence (AI) hardware is “driving business” to OCI, Morgan Stanley analysts wrote last month.

Jefferies analysts say Oracle will need to see sustained demand for OCI and improved OCI performance if the company wants to achieve double-digit revenue growth.

Business in Focus: Partnerships

Oracle suggested last quarter that it may be well-positioned to benefit from growing demand for data related to training and running AI models, particularly thanks to deals with Microsoft and OpenAI.

Mizuho Americas analysts expect the company to add Amazon.com’s (AMZN) AWS service to its offering, an announcement that will be made at Oracle’s CloudWorld conference, which will take place from September 9-12. The company also said Oracle may reveal plans for a new artificial intelligence factory.