Oracle reported 9% revenue increase for the second quarter of the 2025 fiscal year, hitting $141 billion.
"Record AI demand drove Oracle Cloud Infrastructure revenue up 52% in Q2, a much higher growth rate than any of our hyperscale cloud infrastructure competitors," said CEO Safra Catz. "Growth in the AI segment of our Infrastructure business was extraordinary – GPU consumption was up 336% in the quarter–and we delivered the world's largest and fastest AI superComputer scaling up to 65,000 NVIDIA H200 GPUs."
Ms. Catz said the company expects to see the fiscal year 2025 revenue for Oracle Cloud grow to exceed $25 billion. The cloud business trains specialized AI models and embeds hundreds of AI agents in cloud applicators, according to Larry Ellison, Oracle's chair and chief technology officer. Those applications drive big innovations in the healthcare space.
"Oracle's AI agents automate drug design, image and genomic analysis for a cancer diagnostics, audio updates to electronic health records for patient care, satellite image analysis to predict and improve agricultural output, fraud and money laundering detection, dual factor biometric computer logins, and real time video weapons detection in schools," said Mr. Ellison. "Oracle trained AI models and AI agents will improve the rate of scientific discovery, economic development and corporate growth throughout the world. The scale of opportunity is unimaginable."
Last month, Oracle announced plans to roll out its new AI-powered EHR system that will include ease of use features for clinicians to find information through voice command. The company hopes clinicians will be able to spend more time with patients because of the technology, which Seema Verma, executive vice president of Oracle Health and Life Sciences, told CNBC made it more like a "resident" than an assistant or scribe. Ms. Catz and Mr. Ellison didn't address the new system during the earnings call, but did talk about AI powering the company forward.
Oracle reported operating income increased 17% to $4.2 billion for the second quarter, ending Nov. 30. Net income jumped 26% to nearly $3.2 billion. The revenue breakdown for Oracle's product lines includes:
- Cloud: $5.9 billion (24% increase)
- Cloud Infrastructure: $2.4 billion ($52% increase)
- Cloud Application: $3.5 billion (10% increase)
- Fusion Cloud ERP: $0.9 billion (18% increase)
- NetSuite Cloud ERP: $0.9 billion (20% increase)
Oracle forged several partnerships in the last year including a recent deal with Meta where the partners will work together on developing AI agents. Google and Amazon Web Services both also recently contracted with Oracle, which had an existing relationships with Microsoft as well to develop a multi-cloud environment.
"We're at the very beginning of multi-cloud," said Mr. Ellison during the call, as transcribed by The Motley Fool. "It's going to exit well over $100 million in its first year…It will be a multibillion dollar business and it'll be a combination of AWS and Google and Azure."