Q4 2025 Oracle Corp Earnings Call

June 11, 2025

Unknown Executive: Hello and welcome to the Oracle Corporation 4th Quarter and Full Year 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star 1 on your telephone keypad.

Operator: Hello, and welcome to the Oracle Corporation Fourth Quarter and Full Year 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please press star one on your telephone keypad. I would now like to turn the conference over to Ken Bond, Head of Investor Relations. Please go ahead.

Hello, and welcome to the Oracle Corporation fourth quarter and full year 2025 earnings call. All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time. Please press star one on your telephone keypad.

Ken Bond: I would now like to turn the conference over to Ken Bond, Head of Investor Relations. Please go ahead. Thank you, Sarah. And good afternoon, everyone. And welcome to Oracle's fourth quarter and fiscal year 2025 earnings conference call.

Speaker Change: I would now like to turn the conference over to Ken Bond head of Investor Relations. Please go ahead.

Ken Bond: Thank you, Sarah. Good afternoon, everyone, and welcome to Oracle's fourth quarter and fiscal year 2025 earnings conference call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website. Additionally, a list of many customers who purchased Oracle Cloud services or went live on Oracle Cloud recently will be available from our Investor Relations website. On the call today are Chairman and Chief Technology Officer Larry Ellison, and Chief Executive Officer Safra Catz. As a reminder, today's discussion will include forward-looking statements, including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business, which may potentially affect these forward-looking statements.

Ken Bond: Thank you, Sarah. Good afternoon, everyone, and welcome to Oracle's Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website. Additionally, a list of many customers who purchased Oracle Cloud services or went live on Oracle Cloud recently will be available from our investor relations website. On the call today are Chairman and Chief Technology Officer Larry Ellison, and Chief Executive Officer Safra Catz. As a reminder, today's discussion will include forward-looking statements, including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business, which may potentially affect these forward-looking statements.

Ken Bond: Thank you Sarah and good afternoon, everyone and welcome to Oracle's fourth quarter and fiscal year 2025 earnings conference call a copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from our investor Relations website.

Ken Bond: A copy of the press release and financial tables, which includes a gap to non-gap reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website.

Ken Bond: Additionally, a list of many customers who purchased Oracle Cloud Services or went live on Oracle Cloud recently will be available from our Investor Relations website.

Safra Cats: Additionally, our list of many customers, who purchase Oracle cloud services or went live on Oracle cloud recently, we will be available from our Investor Relations website on the call today are chairman and Chief Technology Officer, Larry Ellison, and Chief Executive Officer Safra Cats as a reminder, today's discussion will include forward looking.

Ken Bond: The call today are Chairman and Chief Technology Officer Larry Ellison and Chief Executive Officer Safra Katz. As a reminder, today's discussion will include forward-looking statements, including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business, which may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today.

Safra Cats: Statements, including predictions expectations estimates or other information that might be considered forward looking.

Safra Cats: Throughout today's discussion we will present, some important factors relating to our business, which may potentially affect these forward looking statements. These forward looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today as a result, we caution you against.

Ken Bond: These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today. As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports, including our 10-K, 10-Q, and any applicable amendments, for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. Finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events. Before taking questions, we will begin with a few prepared remarks, and with that, I'd like to turn the call over to Safra.

These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today. As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports, including our 10-K, 10-Q, and any applicable amendments, for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. Finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events. Before taking questions, we will begin with a few prepared remarks, and with that, I'd like to turn the call over to Safra.

Ken Bond: As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports, including our 10-K and 10-Q, and any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock.

Safra Cats: Placing undue reliance on these forward looking statements and we encourage you to review our most recent reports, including our 10-K and 10-Q and any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock and finally, we're not obligating ourselves to revise our.

Ken Bond: And finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events.

Safra Cats: Our results or these forward looking statements in light of new information or future events before taking questions. We will begin with a few prepared remarks and with that I'd like to turn the call over to Safra.

Safra Catz: Before taking questions, we will begin with a few prepared remarks, and with that, I'd like to turn the call over to Sabra. Thanks, Ken, and good afternoon, everyone. As you can see, we had an excellent fourth quarter to finish out an amazing year with Q4 total revenue and EPS both exceeding my guidance.

[Company Representative] (Oracle Corporation): Thanks, Ken, and good afternoon, everyone. As you can see, we had an excellent fourth quarter to finish out an amazing year, with Q4 total revenue and EPS both exceeding my guidance. We are reporting our fiscal year-end results just 11 days after the last day of the quarter. Using Oracle Fusion, we continue to announce our quarterly and annual financial results faster than any other company in the S&P 500. A few years ago, I told you that we'd reached a tipping point in our cloud transition and expected revenue growth to accelerate, and it has. In Q4, we hit double-digit revenue growth, and it's only going up from here, even as the company gets bigger. Our remaining performance obligations now stand at $138 billion, up $8 billion from last quarter, and up 41% from last year, and yet the best is still to come.

Safra Catz: Thanks, Ken, and good afternoon, everyone. As you can see, we had an excellent fourth quarter to finish out an amazing year, with Q4 total revenue and EPS both exceeding my guidance. We are reporting our fiscal year-end results just 11 days after the last day of the quarter. Using Oracle Fusion, we continue to announce our quarterly and annual financial results faster than any other company in the S&P 500. A few years ago, I told you that we'd reached a tipping point in our cloud transition and expected revenue growth to accelerate, and it has. In Q4, we hit double-digit revenue growth, and it's only going up from here, even as the company gets bigger. Our remaining performance obligations now stand at $138 billion, up $8 billion from last quarter, and up 41% from last year, and yet the best is still to come.

Safra Cats: Thanks, Ken and good afternoon, everyone. As you can see we had an excellent fourth quarter to finish out and amazing here with Q4 total revenue and EPS, both exceeding my guidance.

Safra Catz: We are reporting our fiscal year-end results just 11 days after the last day of the quarter. Using Oracle Fusion, we continue to announce our quarterly and annual financial results faster than any other company in the S&P 500. Now, a few years ago, I told you that we'd reached a tipping point in our cloud transition and expected revenue growth to accelerate, and it has. In Q4, we hit double-digit revenue growth, and it's only going up from here, even as the company gets bigger. Our remaining performance obligations now stand at $138 billion, up $8 billion from last quarter and up 41% from last year, and yet the best is still to come.

Safra Cats: We're reporting our fiscal year end yourself, just 11 days after the last day of the quarter using Oracle fusion, we continue to announce our quarterly and annual financial results faster than any other company in the S&P 500.

Safra Cats: Now a few years ago I told you that we'd reached a tipping point in our cloud transition and expected revenue growth to accelerate.

And did have in Q4, we had double digit revenue growth and it's only going up from here.

Safra Cats: As the company gets bigger.

Our remaining performance obligations now stand at 138 billion up $8 billion from last quarter and up 41% from last year and yet the best is still to come.

Safra Catz: Our applications business was the first area we moved to the cloud more than a decade ago, and we are now the leader in enterprise back office with SAS Solutions for ERP. Financials, EPM, HCM, Supply Chain, and Manufacturing. With the addition of over 100 AI agents, along with strong bookings and higher renewal rates for our strategic SaaS products, I expect the cloud applications growth rate will accelerate this coming year. Our infrastructure business was the next area to move to the cloud. We made engineering decisions that were much different from the other hyperscalers and that were better suited to the needs of enterprise customers, resulting in lower costs to them and giving them deployment flexibility.

[Company Representative] (Oracle Corporation): Our applications business was the first area we moved to the cloud more than a decade ago, and we are now the leader in enterprise back office with SaaS solutions for ERP, financials, EPM, HCM, supply chain, and manufacturing, with the addition of over 100 AI agents, along with strong bookings and higher renewal rates for our strategic SaaS products. I expect the cloud applications growth rate will accelerate this coming year. Our infrastructure business was the next area to move to the cloud. We made engineering decisions that were much different from the other hyperscalers, and that were better suited to the needs of enterprise customers, resulting in lower costs to them and giving them deployment flexibility. OCI has seen exceptional demand for infrastructure services, and those contracted non-cancelable bookings in RPO give us confidence that OCI revenue will grow over 70% this current year.

Our applications business was the first area we moved to the cloud more than a decade ago, and we are now the leader in enterprise back office with SaaS solutions for ERP, financials, EPM, HCM, supply chain, and manufacturing, with the addition of over 100 AI agents, along with strong bookings and higher renewal rates for our strategic SaaS products. I expect the cloud applications growth rate will accelerate this coming year. Our infrastructure business was the next area to move to the cloud. We made engineering decisions that were much different from the other hyperscalers, and that were better suited to the needs of enterprise customers, resulting in lower costs to them and giving them deployment flexibility. OCI has seen exceptional demand for infrastructure services, and those contracted non-cancelable bookings in RPO give us confidence that OCI revenue will grow over 70% this current year.

Our applications business was the first area, we move to the cloud more than a decade ago and we are now the leader in enterprise back office with SaaS solutions for ERP.

Financials, EPS HCM supply chain and manufacturing with the addition of over 100, AI agent, along with strong bookings and higher renewal rates for our strategic SaaS products I expect the cloud applications growth.

<unk> will accelerate this coming year.

Our infrastructure business was the next area to move to the cloud we made engineering decisions that were much different from the other hyper scale.

And that were better suited to the needs of enterprise customers.

Safra Cats: Resulting in lower cost to them and giving them deployment flexibility.

Safra Catz: OCI has seen exceptional demand for infrastructure services and those contracted non-cancellable bookings in RPO give us confidence that OCI revenue will grow over 70% this current year.

<unk> has seen exceptional demand for infrastructure services and those contracted noncancelable bookings in RP O give us confidence that OCI revenue will grow over 70%. This current year.

Safra Catz: included in that. is that Oracle Autonomous Database and the AI Data Platform. Enterprises know that their AI needs demand the most capable database to manage a company's full data set. further with our AI and autonomous features, our customers can bring all their data together, make it available for LLMs, and yet have the best security built in. In addition, our customers have the flexibility to run their Oracle databases in OCI, in private clouds, or in partner clouds with our multi-cloud offering. But what is clear is that more customers will use the Oracle database to leverage AI.

[Company Representative] (Oracle Corporation): Included in that is the Oracle Autonomous Database and the AI Data Platform. Enterprises know that their AI needs demand the most capable database to manage a company's full data set. Further, with our AI and autonomous features, our customers can bring all their data together, make it available for LLMs, and yet have the best security built in. In addition, our customers have the flexibility to run their Oracle databases in OCI, in private clouds, or in partner clouds with our multi-cloud offering. What is clear is that more customers will use the Oracle database to leverage AI. As a result of the strength in our cloud applications and infrastructure, including database services, we are raising our revenue guidance for fiscal year 2026 to over $67 billion, up 16% for the year.

Included in that is the Oracle Autonomous Database and the AI Data Platform. Enterprises know that their AI needs demand the most capable database to manage a company's full data set. Further, with our AI and autonomous features, our customers can bring all their data together, make it available for LLMs, and yet have the best security built in. In addition, our customers have the flexibility to run their Oracle databases in OCI, in private clouds, or in partner clouds with our multi-cloud offering. What is clear is that more customers will use the Oracle database to leverage AI. As a result of the strength in our cloud applications and infrastructure, including database services, we are raising our revenue guidance for fiscal year 2026 to over $67 billion, up 16% for the year.

Safra Cats: Included in that.

Is the Oracle autonomous database and the AI data platform.

Enterprises know that their AI needs demand the most capable database to manage company's full dataset further with our AI and autonomous features our customers can bring all their data together make it <unk>.

Both for LLS and yet has the best security built in.

In addition, our customers have the flexibility to run their oracle databases in OCI in private clouds or in partner clouds with our multi cloud offer it.

But what is clear is that more customers will use the oracle database to leverage AI.

So.

Safra Catz: As a result of the strengths in our cloud applications and infrastructure, including database services, we are raising our revenue guidance for fiscal year 26 to over $67 billion, up 16% for the year.

As a result of the strength in our cloud applications and infrastructure, including database services we.

We're raising our revenue guidance for fiscal year 'twenty six to over 67 billion up 16% for the year.

Safra Catz: Now, to the results. And as usual, I'll be discussing our financials using constant currency growth rates, as it is how we manage the business. Total cloud revenue, FaaS plus IaaS, was up 27% at $6.7 billion. and total cloud services and license support revenue for the quarter was $11.7 billion up 14%. IAS revenue was $3 billion, up 52% on top of the 42% growth reported last year. OCI consumption revenue was up 62% and demand continues to dramatically outstrip supply. Our infrastructure cloud services now have an annualized revenue of nearly $12 billion. Cloud Database Services which were up 31% now have annualized revenue of $2.6 billion.

[Company Representative] (Oracle Corporation): Now, to the results, and as usual, I'll be discussing our financials using constant currency growth rates, as it is how we manage the business. Total cloud revenue, SaaS plus IaaS, was up 27% at $6.7 billion, and total cloud services and license support revenue for the quarter was $11.7 billion, up 14%. IaaS revenue was $3 billion, up 52% on top of the 42% growth reported last year. OCI consumption revenue was up 62%, and demand continues to dramatically outstrip supply. Our infrastructure cloud services now have an annualized revenue of nearly $12 billion. Cloud database services, which were up 31%, now have annualized revenue of $2.6 billion. Autonomous database consumption revenue was up 47% on top of the 27% growth reported last year.

Now, to the results, and as usual, I'll be discussing our financials using constant currency growth rates, as it is how we manage the business. Total cloud revenue, SaaS plus IaaS, was up 27% at $6.7 billion, and total cloud services and license support revenue for the quarter was $11.7 billion, up 14%. IaaS revenue was $3 billion, up 52% on top of the 42% growth reported last year. OCI consumption revenue was up 62%, and demand continues to dramatically outstrip supply. Our infrastructure cloud services now have an annualized revenue of nearly $12 billion. Cloud database services, which were up 31%, now have annualized revenue of $2.6 billion. Autonomous database consumption revenue was up 47% on top of the 27% growth reported last year.

Now to the results and as usual I'll be discussing our financials using constant currency growth rates as it is how we manage the business.

Safra Cats: Total cloud revenue.

Safra Cats: <unk> plus <unk> was up 27% at $6 7 billion.

And total cloud services and license support revenue for the quarter was $11 7 billion up 14%.

I as revenue.

Was 3 billion up 52% on top of the 42% growth reported last year.

Safra Cats: OCI consumption revenue was up 62% and demand continues to dramatically outstrip supply.

Our infrastructure cloud services now has an annualized revenue of nearly 12 billion.

Safra Cats: Cloud database services, which were up 31% now has annualized revenue of $2 6 billion.

Safra Catz: Autonomous Database Consumption Revenue was up 47% on top of the 27% growth reported last year. As on-premise databases migrate to the cloud, either on OCI directly or through our database at cloud services with Azure, Google, or AWS, we expect that cloud database revenues collectively will be the third driver of revenue growth alongside OCI and strategic SAP. We are currently live in 23 cloud regions with database at cloud services and have another 47 plans. Database subscription revenues, which include database license support, were up 7%. Infrastructure subscription revenues in the quarter, which includes license support, were $6.7 billion, up 19%.

Safra Cats: Autonomous database consumption revenue was up 47% on top of the 25, 27% growth reported last year.

[Company Representative] (Oracle Corporation): As on-premise databases migrate to the cloud, either on OCI directly or through our database at cloud services with Azure, Google, or AWS, we expect that cloud database revenues collectively will be the third driver of revenue growth alongside OCI and strategic SaaS. We are currently live in 23 cloud regions with database at cloud services and have another 47 planned. Database subscription revenues, which include database license support, were up 7%. Infrastructure subscription revenues in the quarter, which includes license support, were $6.7 billion, up 19%. SaaS revenue was $3.7 billion, up 11%. Application subscription revenues, which include support, were $5 billion, up 8%. Our strategic back office SaaS applications now have annualized revenues of $9.3 billion, and they were up 20%. Software license revenues were up 8% to $2 billion. All in, total revenues for the quarter were $15.9 billion, up 11% from last year.

As on-premise databases migrate to the cloud, either on OCI directly or through our database at cloud services with Azure, Google, or AWS, we expect that cloud database revenues collectively will be the third driver of revenue growth alongside OCI and strategic SaaS. We are currently live in 23 cloud regions with database at cloud services and have another 47 planned. Database subscription revenues, which include database license support, were up 7%. Infrastructure subscription revenues in the quarter, which includes license support, were $6.7 billion, up 19%. SaaS revenue was $3.7 billion, up 11%. Application subscription revenues, which include support, were $5 billion, up 8%. Our strategic back office SaaS applications now have annualized revenues of $9.3 billion, and they were up 20%. Software license revenues were up 8% to $2 billion. All in, total revenues for the quarter were $15.9 billion, up 11% from last year.

As on premise databases migrate to the cloud either on OCI directly or through our database at cloud services with Azure, Google or AWS, we expect that cloud database revenues collectively will be the third driver of Rev.

Safra Cats: Revenue growth alongside OCI and strategic Seth.

Safra Cats: We are we are currently live in 'twenty three cloud regions with database at cloud services and having another 47 plant.

Safra Cats: Database subscription revenues, which include database license support were up 7% infrastructure subscription revenues in the quarter, which includes license support were $6 7 billion up 19%.

Safra Catz: That's revenue with $3.7 billion up 11%. Application Subscription Revenues, which includes support, were $5 billion, up 8%. Our strategic back office SaaS applications now have annualized revenues of $9.3 billion and they were up 20%. Software license revenues were up 8% to $2 billion. So all in, total revenues for the quarter were $15.9 billion, up 11% from last year. Operating income grew 7%. Non-GAAP EPS was $1.70 in U.S. dollars, while GAAP EPS was $1.19 in U.S. dollars. The non-GAAP tax rate for the quarter was 9.7 percent, higher than my 19.7 percent, which was higher than my 19 percent dividend.

SaaS revenue was $3 7 billion up 11% application subscription revenues, which includes support where 5 billion up 8%.

Our strategic back office SaaS applications now have annualized revenues of $9 3 billion and they were up 20%.

Safra Cats: Software license revenues were up 8% to two bill yet.

Safra Cats: All in total revenues for the quarter were $15 9 billion up 11% from last year operating income grew 7%.

[Company Representative] (Oracle Corporation): Operating income grew 7%. Non-GAAP EPS was $1.70 in US dollars, while GAAP EPS was $1.19 in US dollars. The non-GAAP tax rate for the quarter was 9.7%, higher than my 19.7%, which was higher than my 19% guidance. For the full fiscal year, total company revenue was $57.4 billion, up 9%. Total cloud services and license support revenue, which is entirely subscription-based and accounts for 77% of total revenue, was $44 billion, up 12%. Total application subscription revenue grew 7%, and infrastructure subscription revenues grew 17%. Total cloud services were up 24% to $24.5 billion. IaaS, or cloud infrastructure revenue, was up 51% to $10.2 billion for the quarter, with consumption revenue up 59% from last year. SaaS revenue was up 10% to $14.3 billion for the year. Non-GAAP EPS for the full year was $6 in USD, up 9%, and the full year operating income grew 9%.

Operating income grew 7%. Non-GAAP EPS was $1.70 in US dollars, while GAAP EPS was $1.19 in US dollars. The non-GAAP tax rate for the quarter was 9.7%, higher than my 19.7%, which was higher than my 19% guidance. For the full fiscal year, total company revenue was $57.4 billion, up 9%. Total cloud services and license support revenue, which is entirely subscription-based and accounts for 77% of total revenue, was $44 billion, up 12%. Total application subscription revenue grew 7%, and infrastructure subscription revenues grew 17%. Total cloud services were up 24% to $24.5 billion. IaaS, or cloud infrastructure revenue, was up 51% to $10.2 billion for the quarter, with consumption revenue up 59% from last year. SaaS revenue was up 10% to $14.3 billion for the year. Non-GAAP EPS for the full year was $6 in USD, up 9%, and the full year operating income grew 9%.

Safra Cats: non-GAAP EPS was $1 70 in U S dollars, while GAAP EPS was a dollar and 19 in U S dollars. The non-GAAP tax rate for the quarter was nine 7% higher than my 9% 19th 19, 7%.

Which was higher than my 19% guidance.

Safra Catz: For the full fiscal year, total company revenue was $57.4 billion, up 9%. Total cloud services and license support revenue, which is entirely subscription-based and accounts for 77% of total revenue, was $44 billion, up 12%. Total Application Subscription Revenue grew 7% and Infrastructure Subscription Revenues grew 17%. Total cloud services were up 24%. 24.5 billion. IAS or cloud infrastructure revenue was up 51% to 10.2 billion for the quarter with consumption revenue up 59% from last year. SAS revenue was up 10% to 14.3 billion for the year. non-GAAP EPS for the full year. with $6 in USD up 9% and full year operating income.

Safra Cats: For the full fiscal year total company revenue was $57 4 billion up 9% total cloud services and license support revenue, which is entirely subscription based and accounts for 77 <unk>.

<unk> of total revenue was 44 billion up 12%.

Total applications subscription revenue grew 7% and infrastructure subscription revenues grew 17%.

Total cloud services were up.

Up 24% to $24 5 billion.

Safra Cats: I ask for a cloud infrastructure revenue was up 51% to $10 2 billion for the quarter with consumption revenue up 15, 9% from last year.

SaaS revenue was up 10% to $14 3 billion for the year.

non-GAAP EPS for the full year.

Safra Cats: With $6 in U S D up 9% and full year operating income grew 9%.

Safra Catz: grew 9%. As mentioned, remaining performance obligation at the end of Q4 is now $138 billion, up 41% in U.S. Further, our cloud RPO grew 56%. on top. of the 80% growth last year and now represents nearly 80% of total RPO and approximately 33% of total RPO is expected to be recognized as revenue over the next 12 months. For the year, operating cash flow was up 12% at $20.8 billion and free cash flow was a negative $400 million with $21.2 billion of capex. Operating cash flow for Q4 was $6.2 billion while free cash flow was a negative $2.9 billion with capex of $9.1.

[Company Representative] (Oracle Corporation): As mentioned, remaining performance obligation at the end of Q4 is now $138 billion, up 41% in USD. Further, our cloud RPO grew 56% on top of the 80% growth last year, and now represents nearly 80% of total RPO. Approximately 33% of total RPO is expected to be recognized as revenue over the next 12 months. For the year, operating cash flow was up 12% at $20.8 billion, and free cash flow was a negative $400 million, with $21.2 billion of CapEx. Operating cash flow for Q4 was $6.2 billion, while free cash flow was a negative $2.9 billion, with CapEx of $9.1 billion. The vast majority of our CapEx investments are for revenue-generating equipment that is going into data centers and not for land or buildings. I expect that FY26 CapEx will be higher at over $25 billion as we work to meet demand from our backlog.

As mentioned, remaining performance obligation at the end of Q4 is now $138 billion, up 41% in USD. Further, our cloud RPO grew 56% on top of the 80% growth last year, and now represents nearly 80% of total RPO. Approximately 33% of total RPO is expected to be recognized as revenue over the next 12 months. For the year, operating cash flow was up 12% at $20.8 billion, and free cash flow was a negative $400 million, with $21.2 billion of CapEx. Operating cash flow for Q4 was $6.2 billion, while free cash flow was a negative $2.9 billion, with CapEx of $9.1 billion. The vast majority of our CapEx investments are for revenue-generating equipment that is going into data centers and not for land or buildings. I expect that FY26 CapEx will be higher at over $25 billion as we work to meet demand from our backlog.

Safra Cats: As mentioned remaining performance obligation at the end of Q4 is now.

Safra Cats: 138 billion up 41% in USD further our cloud our P O grew 56%.

Safra Cats: On top.

Safra Cats: Of the 80% growth last year and now represents nearly 80% of total R. P O.

Safra Cats: And approximately 33% of total RPM is expected to be recognized as revenue over the next 12 months.

Safra Cats: For the year operating cash flow was up 12% at 28 billion and free cash flow was a negative 400 million with $21 2 billion of Capex.

Operating cash flow for Q4 was $6 2 billion, while free cash flow was a negative 2.9 billion with Capex of 9.1.

Safra Catz: The vast majority of our CapEx investment. are for revenue generating equipment that is going into data centers and not for Land or Build I expect that FY26 CapEx will be higher at over $25 billion as we work to meet demand from our backlog. As we bring more capacity online, our revenue and profit growth will further accelerate. At quarter end, we had $11.2 billion in cash and marketable securities. The short term deferred revenue balance was $9.4 billion.

The vast majority of our Capex investments are for revenue generating equipment that is going into data centers and not.

Safra Cats: For land or buildings.

Safra Cats: I expect that FY 'twenty six capex will be higher at over 25 billion as we work to meet demand from our backlog.

[Company Representative] (Oracle Corporation): As we bring more capacity online, our revenue and profit growth will further accelerate. At quarter end, we had $11.2 billion in cash and marketable securities. The short-term deferred revenue balance was $9.4 billion. We are committed to returning value to our shareholders through technical innovation, strategic acquisitions, stock repurchases, prudent use of debt, and a dividend. This quarter, we repurchased a little over a million shares for a total of $150 million, and over the last 10 years, we've reduced shares outstanding by more than 1/3 at an average share price of just over $54. In addition, we have paid out dividends of $4.7 billion over the last 12 months, and the board of directors again declared a quarterly dividend of $0.50 per share. Since it's the beginning of FY26, I'd like to comment on the financial acceleration we expect to see in the coming years.

As we bring more capacity online, our revenue and profit growth will further accelerate. At quarter end, we had $11.2 billion in cash and marketable securities. The short-term deferred revenue balance was $9.4 billion. We are committed to returning value to our shareholders through technical innovation, strategic acquisitions, stock repurchases, prudent use of debt, and a dividend. This quarter, we repurchased a little over a million shares for a total of $150 million, and over the last 10 years, we've reduced shares outstanding by more than 1/3 at an average share price of just over $54. In addition, we have paid out dividends of $4.7 billion over the last 12 months, and the board of directors again declared a quarterly dividend of $0.50 per share. Since it's the beginning of FY26, I'd like to comment on the financial acceleration we expect to see in the coming years.

Safra Cats: As we bring more capacity online our revenue and profit growth.

Safra Cats: Further accelerate.

Safra Cats: At quarter end, we had $11 2 billion in cash and marketable securities.

Safra Cats: The short term deferred revenue balance was $9 4 billion.

Safra Catz: We are committed to returning value to our shareholders through technical innovation, strategic acquisitions, stock repurchases, prudent use of debt, and a dividend. This quarter, we repurchased a little over a million shares for a total of 150 million. And over the last 10 years, we've reduced shares outstanding by more than a third at an average share price of just over $54. In addition, we have paid out dividends of 4.7 billion over the last 12 months, and the board of directors, again, declared a quarterly dividend of 50 cents per share.

Safra Cats: We are committed to returning value to our shareholders through technical innovation.

Safra Cats: Teach at acquisitions stock repurchases prudent use of debt and the dividend this quarter, we repurchased a little over a million shares for a total of $150 million and over the last 10 years, we've reduced shares outstanding by more than a third at an average share.

Safra Cats: Price of just over $54. In addition, we've paid out dividends of $4 7 billion over the last 12 months and the board of directors again declared a quarterly dividend of 50 cents per share.

Safra Catz: Since it's the beginning of FY26, I'd like to comment on the financial acceleration we expect to see in the coming year. Between our 138 billion RPO and even larger pipeline, we have a clear line of sight to future revenue growth. So for fiscal year 2026, I expect that total cloud revenue will grow over 40% in constant currency, up from 24% in FY25. I expect that cloud infrastructure revenue will grow over 70%, up from 51% in FY25. I expect total revenue will be at least $67 billion, up 16% in constant currency and up more than $1 billion from our prior guidance.

Safra Cats: Since the beginning of FY 'twenty six I'd like to comment on the financial acceleration, we expect to see in the coming years.

[Company Representative] (Oracle Corporation): Between our $138 billion RPO and even larger pipeline, we have a clear line of sight to future revenue growth. For fiscal year 2026, I expect that total cloud revenue will grow over 40% in constant currency, up from 24% in FY25. I expect that cloud infrastructure revenue will grow over 70%, up from 51% in FY25. I expect total revenue will be at least $67 billion, up 16% in constant currency, and up more than a billion from our prior guidance. RPO is likely to grow more than 100% in fiscal year 2026. Lastly, I expect we will exceed the revenue growth target we previously provided for FY27. Beyond FY27, I am even more confident in our ability to meet, and likely exceed, our previously provided FY29 targets.

Between our $138 billion RPO and even larger pipeline, we have a clear line of sight to future revenue growth. For fiscal year 2026, I expect that total cloud revenue will grow over 40% in constant currency, up from 24% in FY25. I expect that cloud infrastructure revenue will grow over 70%, up from 51% in FY25. I expect total revenue will be at least $67 billion, up 16% in constant currency, and up more than a billion from our prior guidance. RPO is likely to grow more than 100% in fiscal year 2026. Lastly, I expect we will exceed the revenue growth target we previously provided for FY27. Beyond FY27, I am even more confident in our ability to meet, and likely exceed, our previously provided FY29 targets.

Safra Cats: Tween or 138 billion or P O and even larger pipeline, we have a clear line of sight to future revenue growth. So for fiscal year 'twenty 'twenty six I expect that total cloud revenue will grow over 40%.

Safra Cats: In constant currency up from 24% in FY 'twenty five.

Safra Cats: I expect the cloud infrastructure revenue will grow over 70%.

Safra Cats: Up from 51% in FY 'twenty five.

Safra Cats: I expect total revenue will be at least 67 billion up 16% in constant currency and up more than a billion from our prior guidance.

Safra Catz: Our PO is likely to grow more than 100% in fiscal year 26, and lastly, I expect we will exceed the revenue growth target we previously provided for FY27. Beyond FY27, I am even more confident in our ability to meet and likely exceed our previously provided FY29 targets.

Safra Cats: [noise] RP O is likely to grow more than 100% in fiscal year 'twenty six and lastly.

I expect we will exceed the revenue growth target. We previously provided for FY 'twenty seven.

Safra Cats: Beyond FY 'twenty seven I am even more confident in our ability to meet and likely exceed our previously provided FY 'twenty nine targets, we will provide a more fulsome update on our long range financial targets at the financial.

[Company Representative] (Oracle Corporation): We will provide a more fulsome update on our long-range financial targets at the financial analyst meeting at Oracle CloudWorld in Las Vegas in October. Now, let me turn to my guidance for Q1, which I'll review on a non-GAAP basis. Now, assuming currency exchange rates remain the same as they are now, currency should have a 2% positive effect on EPS, and a flat to 1% positive effect on revenue, depending on rounding. However, of course, the actual currency impact may be different. Total revenues are expected to grow from 11% to 13% in constant currency, and are expected to grow from 12% to 14% in US dollars. Total cloud revenue is expected to grow from 26% to 30% in constant currency and US dollars. Non-GAAP EPS is expected to grow between 4% and 6% and be between $1.44 and $1.48 in constant currency.

We will provide a more fulsome update on our long-range financial targets at the financial analyst meeting at Oracle CloudWorld in Las Vegas in October. Now, let me turn to my guidance for Q1, which I'll review on a non-GAAP basis. Now, assuming currency exchange rates remain the same as they are now, currency should have a 2% positive effect on EPS, and a flat to 1% positive effect on revenue, depending on rounding. However, of course, the actual currency impact may be different. Total revenues are expected to grow from 11% to 13% in constant currency, and are expected to grow from 12% to 14% in US dollars. Total cloud revenue is expected to grow from 26% to 30% in constant currency and US dollars. Non-GAAP EPS is expected to grow between 4% and 6% and be between $1.44 and $1.48 in constant currency.

Safra Catz: We will provide a more fulsome update on our long-range financial targets at the Financial Analyst Meeting at Oracle CloudWorld in Las Vegas in October.

Safra Cats: Analysts meeting at Oracle cloud World in Las Vegas in October.

Safra Catz: Now, let me turn to my guidance for Q1, which I'll review on a non-GAAP basis. Now, assuming currency exchange rates remain the same as they are now, currency should have a 2% positive effect on EPS and a flat to 1% positive effect on revenue, depending on rounding. However, of course, the actual currency impact may be different. Total revenues are expected to grow from 11% to 13% in constant currency, are expected to grow from 12% to 14% in U.S. dollars. Total cloud revenue is expected to grow from 26% to 30% in constant currency and U.S. dollars.

Safra Cats: Now, let me turn to my guidance for Q1, which I'll review on a non-GAAP basis now assuming currency exchange rates remain the same as they are now currency should have a two.

Safra Cats: A positive effect on E P S and a flat to 1% positive effect on revenue depending on rounding however of course, the actual currency impact may be different.

Safra Cats: Total revenues are expected to grow from 11% to 13% in constant currency are expected to grow from 12% to 14% in U S dollars.

Safra Cats: Total cloud revenue is expected to grow from 26% to 30% in constant currency and U S dollars non.

Safra Catz: Non-GAAP EPS is expected to grow between 4% to 6% and be between $1.44 and $1.48 in constant currency. Non-GAAP EPS is expected to grow between 5% to 7% and be between $1.46 and $1.50 in USD. Lastly, my EPS guidance assumes a base tax rate of 19%. However, one-time tax events could cause actual tax rates to vary.

Safra Cats: non-GAAP EPS is expected to grow between 4% to 6% and be between $1 44 in $1.48 in constant currency non-GAAP EPS is expected to grow between 5% to 7% and be between $1 46.

[Company Representative] (Oracle Corporation): Non-GAAP EPS is expected to grow between 5% to 7% and be between $1.46 and $1.50 in USD. Lastly, my EPS guidance assumes a base tax rate of 19%. However, one-time tax events could cause actual tax rates to vary. We had a great year, and this year, the one we're in now, will be better. Oracle is well on its way to being not only the world's largest cloud application company, but also one of the world's largest cloud infrastructure companies. With that, I'll turn it over to Larry for his comments. Thank you, Safra. Oracle's future is bright in this new era of cloud computing. Oracle will be the number one cloud database company. Oracle will be the number one cloud applications company. Oracle will be the number one builder and operator of cloud infrastructure data centers.

Non-GAAP EPS is expected to grow between 5% to 7% and be between $1.46 and $1.50 in USD. Lastly, my EPS guidance assumes a base tax rate of 19%. However, one-time tax events could cause actual tax rates to vary. We had a great year, and this year, the one we're in now, will be better. Oracle is well on its way to being not only the world's largest cloud application company, but also one of the world's largest cloud infrastructure companies. With that, I'll turn it over to Larry for his comments.

Safra Cats: In $1.50 in USD Lastly, my EPS guidance assumes a base tax rate of 19%. However, one time tax events could cause actual tax rates to vary.

Safra Catz: We had a great year and this year, the one we're in now, will be better.

Safra Cats: We had a great year and this year. The one we're in now will be better.

Safra Catz: Oracle is well on its way to being not only the world's largest cloud application company, but also one of the world's largest cloud infrastructure companies.

Safra Cats: Oracle is well on its way to being not only the world's largest cloud application company, but also one of the world's largest cloud infrastructure companies and with that I.

Larry Ellison: And with that, I'll turn it over to Larry for his. Thank you, Safra. Oracle's future is bright in this new era of cloud computing. Oracle will be the number one cloud database. Oracle will be the number one cloud application. and Oracle will be the number one builder and operator of cloud infrastructure data. We will build and operate more cloud infrastructure data centers. then all of our cloud infrastructure competitors combined.

Safra Cats: I'll turn it over to Larry for his comments.

Larry Ellison: Thank you, Safra. Oracle's future is bright in this new era of cloud computing. Oracle will be the number one cloud database company. Oracle will be the number one cloud applications company. Oracle will be the number one builder and operator of cloud infrastructure data centers.

Larry: Thank you Sabra.

Larry: Oracle's future is bright in this new era of cloud computing.

Larry: Oracle will be the number one cloud database company.

Larry: Oracle will be the number one cloud applications company.

Larry: And Oracle will be the number one builder and operator of cloud and for structured data centers.

[Company Representative] (Oracle Corporation): We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined. First, database. Most of the world's most valuable data is stored in an Oracle database. All of those databases are moving to the cloud: Oracle's cloud, Microsoft's Azure cloud, Amazon's cloud, or Google's cloud. Oracle runs everywhere. The latest vector version of the Oracle database, Oracle 23 AI, is an AI data platform, the only database that can make all of the customer's data immediately available to all of the popular AI large language models, while maintaining complete data privacy for the customer. As use of AI increases, so will Oracle's database market share. Oracle will be the largest and most profitable cloud applications company in the world.

We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined. First, database. Most of the world's most valuable data is stored in an Oracle database. All of those databases are moving to the cloud: Oracle's cloud, Microsoft's Azure cloud, Amazon's cloud, or Google's cloud. Oracle runs everywhere. The latest vector version of the Oracle database, Oracle 23 AI, is an AI data platform, the only database that can make all of the customer's data immediately available to all of the popular AI large language models, while maintaining complete data privacy for the customer. As use of AI increases, so will Oracle's database market share. Oracle will be the largest and most profitable cloud applications company in the world.

Larry: We will build and operate more cloud infrastructure data centers.

Larry: Then all of our cloud infrastructure competitors combined.

Larry Ellison: First Database. Most of the world's most valuable data is stored in an Oracle database. All of those databases are moving to the cloud. Oracle's Cloud Microsoft's Azure cloud, Amazon's cloud, or Google's cloud. Oracle runs every The latest vector version. of the Oracle Database, Oracle 23 AI. is an AI data. the only database that can make all of the customer's data immediately available to all of the popular AI large language while maintaining complete data privacy. Is use of AI increasing? So will Oracle's database.

Larry: First database.

Larry: Most of the world's most valuable data is stored in an Oracle database.

Larry: All of those databases are moving to the cloud.

Larry: Oracle's cloud.

Christophe: Christophe since your cloud Amazon's cloud.

Larry: <unk> cloud.

Larry: Oracle runs everywhere.

Larry: The latest vector version.

Larry: The Oracle database Oracle twenty-three AI Susan.

Larry: Susan AI data platform.

Larry: The only database that can make all of the customers' data immediately available to all of the popular AI large language models, while maintaining complete data privacy for the customer.

Larry: His use of AI increases.

Speaker Change: So, we'll oracle database market share.

Larry Ellison: Oracle will be the largest and most profitable cloud applications company in the world. Oracle developed suites of integrated AI agent-based applications. for ERP. for EPM. Supply Chain, Manufacturing, Human Resources and Customer Engagement. plus industry applications for health care, banking, utilities, retail, hospitality, and many other industries. We use the most modern application generators and AI database technology to build our application suite. And then we add AI analytics using OpenAI, XAI, Google, LLAMA, and other popular LLMs on top of that application. No other company is even attempting to build the depth and breadth of AI-based applications that we have already built.

Speaker Change: Oracle will be the largest and most profitable cloud applications company in the world.

[Company Representative] (Oracle Corporation): Oracle develops suites of integrated AI agent-based applications for ERP, for EPM, supply chain, manufacturing, human resources, and customer engagement, plus industry applications for healthcare, banking, utilities, retail, hospitality, and many other industries. We use the most modern application generators and AI database technology to build our application suite. We add AI analytics using OpenAI, xAI, Google, Llama, and other popular LLMs on top of that application data. No other company is even attempting to build the depth and breadth of AI-based applications that we have already built. Oracle will build more cloud infrastructure data centers than all of our infrastructure competitors combined. All of our OCI data centers, from the smallest low-cost data center to the largest gigawatt AI training data center, include all Oracle OCI capabilities. A large percentage of those capabilities are autonomous, so labor costs are minimized, and human error is dramatically reduced.

Oracle develops suites of integrated AI agent-based applications for ERP, for EPM, supply chain, manufacturing, human resources, and customer engagement, plus industry applications for healthcare, banking, utilities, retail, hospitality, and many other industries. We use the most modern application generators and AI database technology to build our application suite. We add AI analytics using OpenAI, xAI, Google, Llama, and other popular LLMs on top of that application data. No other company is even attempting to build the depth and breadth of AI-based applications that we have already built. Oracle will build more cloud infrastructure data centers than all of our infrastructure competitors combined. All of our OCI data centers, from the smallest low-cost data center to the largest gigawatt AI training data center, include all Oracle OCI capabilities. A large percentage of those capabilities are autonomous, so labor costs are minimized, and human error is dramatically reduced.

Speaker Change: Oracle develop suites of integrated AI agent based applications for E for ERP.

Speaker Change: <unk> P M.

Speaker Change: Supply chain manufacturing human resources and customer engagement.

Speaker Change: Plus industry applications for health care banking utilities retail hospitality and many other industries.

Speaker Change: We use the most modern application generate generators and AI database technology to build our application suite.

Speaker Change: And then we add AI and analytics.

Speaker Change: Using open AI X AI, Google Lama and other popular.

Speaker Change: On top of that application data.

Speaker Change: No other company has even attempting to build the depth and breadth of AI based application that we have already built.

Larry Ellison: Oracle will build. More cloud infrastructure data. and all of our infrastructure competitors combined. All of our OCI data centers, from the smallest low-cost data center to the largest gigawatt AI training data center, include all Oracle OCI capabilities. A large percentage of those capabilities are autonomous. So labor costs are minimized. and human error is dramatically reduced. Oracle is already prospering in this new era of cloud computing and AI. and it's just the beginning.

Speaker Change: Oracle will build.

Speaker Change: More cloud infrastructure data centers.

Speaker Change: All of our infrastructure competitors combined.

Speaker Change: All of our OCI data centers from the smallest low cost data center through the largest gigawatt AI training data center include all Oracle OCI capabilities.

Speaker Change: A large percentage of those capabilities are a ton of it.

Speaker Change: So labor costs are minimized and.

Speaker Change: Human error is dramatically reduced.

[Company Representative] (Oracle Corporation): Oracle is already prospering in this new era of cloud computing and AI, and it's just the beginning. Back to you, Safra. Thank you, Larry. Before we go to the Q&A, just to repeat one number: FY25 cloud infrastructure revenue was up 51% to $10.2 billion for the year, with consumption revenue up 59% from last year. Sarah, if you could please pull the audience for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure that your phone is not on mute when called upon. We ask that you please limit yourself to one question. Thank you. Your first question comes from Mark Moerdler with Bernstein. Your line is open. Thank you very much for taking my question, Larry, Safra, and the whole Oracle family.

Oracle is already prospering in this new era of cloud computing and AI, and it's just the beginning. Back to you, Safra. Thank you, Larry. Before we go to the Q&A, just to repeat one number: FY25 cloud infrastructure revenue was up 51% to $10.2 billion for the year, with consumption revenue up 59% from last year. Sarah, if you could please pull the audience for questions.

Speaker Change: Oracle is already prosper in this new era of cloud computing and AI.

Speaker Change: And it's just the beginning.

Larry Ellison: Back to you, sir.

Speaker Change: Back to you separately.

Safra Catz: Thank you, Larry. Before we go to the Q&A, just to repeat one number, FY25 cloud infrastructure revenue was up 51% to $10.2 billion for the year, with consumption revenue up 59% from last year.

Speaker Change: Thank you Larry before we go to the Q&A just to repeat one number FY 'twenty five cloud infrastructure revenue was up 51% to $10 2 billion for the year with consumption revenue up 59% from last year. Sarah If you could please poll the audience for questions.

Unknown Executive: Sarah, if you could please pull the audience for questions. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Please make sure that your phone is not on mute when called. We ask that you please limit yourself to one question. Thank you.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure that your phone is not on mute when called upon. We ask that you please limit yourself to one question. Thank you. Your first question comes from Mark Moerdler with Bernstein. Your line is open.

Speaker Change: Thank you if you would like to ask a question. Please press star one on your telephone keypad. If you would like to withdraw your question simply press Star one again.

Speaker Change: Please ensure that your phone is not on mute when called upon.

Speaker Change: We ask that you please limit yourself to one question. Thank you.

Mark Moerdler: Your first question comes from Mark Moerdler with. Your line is open. Thank you very much for taking my question, Larry, Safra, and the whole Oracle family. Congratulations on the strong quarter and the strong year. You've been promising and are now starting to deliver, excuse me, and are now starting to deliver extraordinary growth acceleration, something we've not seen in other very large solvers.

Speaker Change: Your first question comes from Mark Marthaler with Bernstein. Your line is open.

Mark Moerdler: Thank you very much for taking my question, Larry, Safra, and the whole Oracle family.

Larry Safra: Thank you very much for taking my question, Larry Safra, and the whole Oracle Sam congratulations on the strong quarter.

[Company Representative] (Oracle Corporation): Congratulations on the strong quarter and the strong year. You've been promising and are now starting to deliver, excuse me, and are now starting to deliver extraordinary growth acceleration, something we've not seen at other very large software companies. Yet there's a lack of understanding across the street of your AI business. Can you give us color or break out any numbers to help investors understand the durability and profitability of the AI business? Thanks. Well, the interesting thing is a lot of people are talking about that they have all the data. These other companies say they have all the data, so they can do AI really well. They can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data we do. We have most of the world's valuable data.

Congratulations on the strong quarter and the strong year. You've been promising and are now starting to deliver, excuse me, and are now starting to deliver extraordinary growth acceleration, something we've not seen at other very large software companies. Yet there's a lack of understanding across the street of your AI business. Can you give us color or break out any numbers to help investors understand the durability and profitability of the AI business? Thanks.

Speaker Change: And the strong year.

Speaker Change: <unk> been promising and are now starting to deliver.

Speaker Change: Yes.

Speaker Change: And now starting to deliver extraordinary growth acceleration something we've not seen at other very large software companies. Yes. There is a lack of understanding across the street.

Larry Ellison: If there's a lack of understanding across the street of your AI business, can you give us color or break out any numbers to help investors understand the durability and profitability of the AI business? Thanks. Okay, well, the interesting thing is, a lot of people are talking about that they have all the data. So these other companies say they have all the data so they can do AI really well. They can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data we do.

Speaker Change: Can you give us color or break out any numbers to help investors understand the durability and profitability.

Larry Ellison: Well, the interesting thing is a lot of people are talking about that they have all the data. These other companies say they have all the data, so they can do AI really well. They can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data we do. We have most of the world's valuable data.

Speaker Change: Thanks.

Speaker Change: Okay, well the interesting thing is.

Speaker Change: A lot of people are talking about.

Speaker Change: They have all the data.

Speaker Change: So these other companies say they have all the data so they can do AI really well they can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data we do.

Larry Ellison: We have most of the world's valuable data. The vast majority of it is in an Oracle database. and the latest version of the Oracle database is an AI-centric piece of technology, a vector database called Oracle 23 AI. So what it does, it is allows, it's the key enabler for companies to use AI. Using AI, I mean the current AI models are trained on the internet, otherwise known as publicly available data. Do you think JPMorgan Chase makes all of their internal data publicly available? Do you think those AI models train on JPMorgan Chase's data? I companies want to be able to use AI models on top of their own data.

Speaker Change: We have most of the world's valuable data.

[Company Representative] (Oracle Corporation): The vast majority of it is in an Oracle database. The latest version of the Oracle database is an AI-centric piece of technology, a vector database called Oracle 23 AI. What it does is it's the key enabler for companies to use AI. I mean, the current AI models are trained on the internet, otherwise known as publicly available data. Do you think JPMorgan Chase makes all of their internal data publicly available? Do you think those AI models train on JPMorgan Chase's data? Companies want to be able to use AI models on top of their own data. That is essential. Oracle applications make all of the data inside the Oracle applications available to AI models like Grok, ChatGPT, or, by the way, all the rest of them, from Google, from whomever, from Meta, Llama, all of us.

The vast majority of it is in an Oracle database. The latest version of the Oracle database is an AI-centric piece of technology, a vector database called Oracle 23 AI. What it does is it's the key enabler for companies to use AI. I mean, the current AI models are trained on the internet, otherwise known as publicly available data. Do you think JPMorgan Chase makes all of their internal data publicly available? Do you think those AI models train on JPMorgan Chase's data? Companies want to be able to use AI models on top of their own data. That is essential. Oracle applications make all of the data inside the Oracle applications available to AI models like Grok, ChatGPT, or, by the way, all the rest of them, from Google, from whomever, from Meta, Llama, all of us.

Speaker Change: Thats majority of it is in an Oracle database.

Speaker Change: And the latest version of the Oracle database is an AI centric.

Speaker Change: Piece of technology of vector database called Oracle twenty-three AI.

Speaker Change: So what it does is it allows it and it is the key enabler.

Speaker Change: For companies to use AI.

Speaker Change: Using the current AI models are trained on the internet otherwise known as publicly available data.

Speaker Change: Do you think J P. Morgan Chase makes all of their internal data publicly available.

Speaker Change: Do you think that does AI models train on JP Morgan Chase's data.

Speaker Change: Uh huh.

Speaker Change: Companies want to be able to use AI models on top of their own data.

Larry Ellison: That is essential.

Speaker Change: That is a central.

Larry Ellison: Oracle application. make all of the data inside the Oracle applications available to AI models like Grok or ChatGPT or all, by the way, all the rest of them from Google, from whomever, from Meta, you know, Lama, all of us, we have all of those, all of those LLMs are in our cloud, are in the Oracle cloud. So this is our value proposition. Our database takes all of your data. Our applications take all of your application data and make that data available to the most popular AI models, like if you like ChatGPT, you use ChatGPT. If you like Grok, you use Grok.

Speaker Change: Oracle applications.

Speaker Change: Make the all of the data inside the Oracle applications available.

Speaker Change: Hi models like rock, where chat GPT are all by the way all the rest of them from Google from whomever.

Speaker Change: Meta Walmart all of US we have all of those all of those items are in our cloud or in the Oracle cloud.

[Company Representative] (Oracle Corporation): We have all of those LLMs in our cloud or in the Oracle Cloud. This is our value proposition. Our database takes all of your data, and our applications take all of your application data and make that data available to the most popular AI models. If you like ChatGPT, you use ChatGPT. If you like Grok, you use Grok. You use that in the Oracle Cloud. We are the key enabler for enterprises to use their own data and AI models. No one else is doing that. That makes sense. This is not a small point. This is why our database business is going to grow dramatically. Think about it. You have to put all of your data into a database. That database must be highly secure, scalable, economical, and reliable 7 days a week, 24 hours a day.

We have all of those LLMs in our cloud or in the Oracle Cloud. This is our value proposition. Our database takes all of your data, and our applications take all of your application data and make that data available to the most popular AI models. If you like ChatGPT, you use ChatGPT. If you like Grok, you use Grok. You use that in the Oracle Cloud. We are the key enabler for enterprises to use their own data and AI models. No one else is doing that. That makes sense. This is not a small point. This is why our database business is going to grow dramatically. Think about it. You have to put all of your data into a database. That database must be highly secure, scalable, economical, and reliable 7 days a week, 24 hours a day.

Speaker Change: So this is our value proposition.

Speaker Change: Our database it takes all of your data.

Speaker Change: Our applications take all of your application data and make that data available to be the most popular AI models likely if you like <unk>, maybe like Gracia you use <unk> you use that in the Oracle cloud we are the key enabler for enterprises to use there.

Larry Ellison: You use that in the Oracle Cloud. We are the key enabler for enterprises to use their own data. I and by models. No one else is doing that. That makes sense. It's a huge, this is not a small, a small point. This is why our database business is going to grow dramatically. Think about it, you have to put all of your data into a database. So that database must be highly secure, it must be scalable, it must be economical, it must be reliable, seven days a week, 24 hours a day, it has to be fault tolerant, it can never break.

Speaker Change: Our own data.

Speaker Change: Uh huh.

Speaker Change: Okay.

Speaker Change: Hi models no one else is doing that.

Speaker Change:

Speaker Change: That makes sense.

Speaker Change: It's a huge this is not a small a small point.

Speaker Change: This is this is the this is why our database business is going to grow dramatically.

Speaker Change: Think about it you have to put all of your data into a database. So that database must be highly secure it must be scalable it must be economical it must be reliable seven days a week 24 hours a day it has to be fault tolerant it can never break.

[Company Representative] (Oracle Corporation): It has to be fault-tolerant. It can never break. That is how Oracle got popular in the first place. It has to hold the data in a way that is consumable by the AI models. In other words, the data has to be vectorized and searchable by the AI models. You use that data to train up those models on your data. Who else is doing that? Let me answer the question. Nobody. Next question, please. Thank you. The next question comes from John DiFucci with Guggenheim. Your line is open. Thank you. Hi, Larry and Safra. Safra, your quote in that press release that you repeated on this call about next year was, I do not know, pretty amazing and as strong a statement as I have seen you make. I have known you a long time.

It has to be fault-tolerant. It can never break. That is how Oracle got popular in the first place. It has to hold the data in a way that is consumable by the AI models. In other words, the data has to be vectorized and searchable by the AI models. You use that data to train up those models on your data. Who else is doing that? Let me answer the question. Nobody.

Larry Ellison: That's how how Oracle got popular in the first place. But then it has to hold the data in a way that's consumable by the AI models. In other words, the data has to be vectorized and searchable by the AI models. And you use that data to train up those models on your data. Who else is doing that?

Speaker Change: That's how how Oracle got popular in the first place, but then it has to hold the data in a way that's consumable by the AI models in other words, the data has to be better right.

Speaker Change: And searchable by the AI AI models.

Speaker Change: And you use that data to train up those models on your data.

Speaker Change: Who else is doing that let me answer the question nobody.

Larry Ellison: Let me answer the question.

Unknown Executive: Nobody. Next question, please.

Ken Bond: Next question, please.

Speaker Change: Next question please.

Operator: Thank you. The next question comes from John DiFucci with Guggenheim. Your line is open.

John DiFucci: Thank you. The next question comes from John DiFucci with Guggenheim. Your line is open. Thank you. Hi, Larry and Safra. Safra, your quote in that press release that you repeated on this call about next year was pretty amazing and as strong a statement as I've seen you make, and I've known you a long time, so putting that in print means a lot to me because I know it means a lot to you.

Speaker Change: Thank you. The next question comes from John Deere Fucci with Guggenheim. Your line is open.

John DiFucci: Thank you. Hi, Larry and Safra. Safra, your quote in that press release that you repeated on this call about next year was, I do not know, pretty amazing and as strong a statement as I have seen you make. I have known you a long time.

Speaker Change: Yes.

Larry Safra: Thank you Hi, Larry Safra.

Larry Safra: Safra.

Speaker Change: In that press release that you repeated on this call about next year.

Speaker Change: Pretty amazing and its strongest statement as I've seen you make and I've known you a long time to putting that in print means a lot to me because I because I know it means a lot to you chip.

[Company Representative] (Oracle Corporation): Putting that in print means a lot to me because I know it means a lot to you. Can you help us unpack that statement a bit? For instance, is Stargate part of the more than 70% growth you expect in IaaS and fiscal 2026? We do not know the timing of Stargate or even your financial share. We know there are big numbers out there, but not how much of it is yours or you are going to be involved. Is Stargate also in the RPO growth of more than 100% in fiscal 2026? Any other color beyond Stargate to help us get our heads around those massive growth numbers for IaaS would be helpful. Thanks, John. Yeah, we have known each other a very long time, longer than I am sure you would admit. The reality is that Stargate is still in formation.

Putting that in print means a lot to me because I know it means a lot to you. Can you help us unpack that statement a bit? For instance, is Stargate part of the more than 70% growth you expect in IaaS and fiscal 2026? We do not know the timing of Stargate or even your financial share. We know there are big numbers out there, but not how much of it is yours or you are going to be involved. Is Stargate also in the RPO growth of more than 100% in fiscal 2026? Any other color beyond Stargate to help us get our heads around those massive growth numbers for IaaS would be helpful.

Safra Catz: Can you help us unpack that statement a bit? For instance, is Stargate part of the more than 70% growth you expect in IAS in fiscal 26? And we don't know the timing of Stargate or even your financial share. We know there's big numbers out there, but not how much of it's yours or you're going to be involved. But is Stargate also in the RPO growth of more than 100% in fiscal 26? And any other color beyond Stargate to help us get our heads around those massive growth numbers for IAS would be helpful. Thanks, John. And yeah, we have known each other a very long time, longer than I could admit.

Speaker Change: Can you unpack that a bit for instance is stargate part of the more than 70% growth you're expecting in fiscal 'twenty six.

Speaker Change: Don't know the timing of Star gate or even your financial Sharon.

Speaker Change: So theres big numbers out there, but not how much of it's yours.

Speaker Change: Youre going to be involved.

Speaker Change: But historically also in the RPM growth of more than 100% in fiscal 'twenty six and any other color beyond beyond <unk> to help us get our heads around those massive growth numbers for I ask would be helpful.

Safra Catz: Thanks, John. Yeah, we have known each other a very long time, longer than I am sure you would admit. The reality is that Stargate is still in formation.

Speaker Change: Thanks, John and Yeah, we have known each other a very long time longer than <unk>.

Speaker Change: Good Matt.

Safra Catz: So the reality is that Stargate is still in formation. The work, there are a lot of partnerships we are in the middle of right now that are all part of this enormous growth rate. We are the destination for everyone who wants AI workloads, who want database workloads, and want applications. We are really, and all of that together comes in to our RPO. We have so much in pipeline right now. And of course, we have so much in RPO, meaning those are non-cancellable contracts. And we see the demand. I am still in a position where our supply is not meeting our demands.

Speaker Change: The reality is that.

Speaker Change: Is that Star gate is still in formation.

Speaker Change: The work.

[Company Representative] (Oracle Corporation): There are a lot of partnerships we are in the middle of right now that are all part of this enormous growth rate. We are the destination for everyone who wants AI workloads, who want database workloads, and want applications. All of that together comes into our RPO. We have so much in pipeline right now. We have so much in RPO, meaning those are non-cancelable contracts. We see the demand. I am still in a position where our supply is not meeting our demands. We actually currently are still waiving off customers or scheduling them out into the future so that we have enough supply to meet demand. This is a situation that we have not seen in our history. The numbers themselves are so enormous. The reason is because our technology is different.

There are a lot of partnerships we are in the middle of right now that are all part of this enormous growth rate. We are the destination for everyone who wants AI workloads, who want database workloads, and want applications. All of that together comes into our RPO. We have so much in pipeline right now. We have so much in RPO, meaning those are non-cancelable contracts. We see the demand. I am still in a position where our supply is not meeting our demands. We actually currently are still waiving off customers or scheduling them out into the future so that we have enough supply to meet demand. This is a situation that we have not seen in our history. The numbers themselves are so enormous. The reason is because our technology is different.

Speaker Change: There are a lot of partnerships we are in the middle of right now that are all part of this to norm enormous growth rate. We are the destination for everyone, who wants AI workloads to our I want database workloads and.

Speaker Change: <unk> want to.

Speaker Change: Applications, we are really.

Speaker Change: And all of that together comes in to two R. R. P. O. We have so much in pipeline right now that and of course, we have so much in our P O meaning those are noncancelable contracts and we see.

Speaker Change: The demand I am still in a position where our supply is not meeting our demand. We actually currently are still waiving off.

Safra Catz: We actually currently are still waving off. customers from or scheduling them out into the future so that we have enough supply to meet demand. This is a situation that we have not seen in our history, and the numbers themselves are so enormous. And the reason is because our technology is different. As Larry has said on previous calls, the cloud we built runs faster and has more capabilities than our competitors that are built for enormous amounts of data. And so we are very much the destination of choice. As Stargate forms, that will contribute into all of this.

Speaker Change: Customers from or scheduling them out into the future. So that we have enough supply to meet demand.

Speaker Change: This is a situation that we have not seen.

Speaker Change: In our history.

Speaker Change: And the numbers themselves are so enormous and the reason is because our technology is different as Larry has said on previous calls the cloud we built runs faster and has more capabilities than.

[Company Representative] (Oracle Corporation): As Larry has said on previous calls, the cloud we built runs faster and has more capabilities than our competitors that are built for enormous amounts of data. We are very much the destination of choice. As Stargate forms, that will contribute into all of this. Some of our partners, many of our partners, some of them will be in Stargate. Some are outside of Stargate. We really are working with many, many companies right now and have enormous pipeline as a result. Let me give you a couple of—let me chime in here also a little bit. Let me surprise you with—there are huge contracts that have nothing to do with even AI. We got a gigantic contract from Temu that would have been unprecedented, except for all the other gigantic contracts we've also been getting.

As Larry has said on previous calls, the cloud we built runs faster and has more capabilities than our competitors that are built for enormous amounts of data. We are very much the destination of choice. As Stargate forms, that will contribute into all of this. Some of our partners, many of our partners, some of them will be in Stargate. Some are outside of Stargate. We really are working with many, many companies right now and have enormous pipeline as a result.

Speaker Change: Our competitors too and that are built for enormous amounts of data and so we are very much the destination of choice as star gate forms that will contribute into all of this but.

Safra Catz: But some of our partners, many of our partners, some of them will be in Stargate, some are outside of Stargate. We really are working with many, many companies right now and have enormous pipeline as a result.

Speaker Change: Some of our our partners many of our partners some of them will be in Star Gate. Some are outside of Star Gate, We really are working with many many companies right now and have enormous pipeline as a result.

Larry Ellison: Let me give you a couple of—let me chime in here also a little bit. Let me surprise you with—there are huge contracts that have nothing to do with even AI. We got a gigantic contract from Temu that would have been unprecedented, except for all the other gigantic contracts we've also been getting.

Larry Ellison: Let me give you a couple of, I mean, let me chime in here also a little bit. Let me surprise you with, there are huge contracts that have nothing to do with even AI. We got a gigantic contract from Timu that would have been unprecedented, except for all the other gigantic contracts we've also been getting. But Timu is a very large company that's growing extremely rapidly, and they're basically moving their infrastructure to the Oracle Cloud. That was a very big contract. We're seeing huge growth in multi-cloud from the data centers we've already built, and the data, I mean, its revenue is obviously data centers we've already built.

Speaker Change: So let me give you a couple of let me chime in here also a little bit let me I'd love to surprise you with there are huge contracts that have nothing nothing to do.

Speaker Change: With even AI AI, we got this gigantic contract from <unk> that would have been unprecedented except for all the other gigantic contracts were also been getting.

[Company Representative] (Oracle Corporation): Temu is a very large company that's growing extremely rapidly. They're basically moving their infrastructure to the Oracle Cloud. That was a very big contract. We're seeing huge growth in multi-cloud from the data centers we've already built and the data—I mean, if it's revenue, it's obviously data centers we've already built. The future, the growth rate in multi-cloud is astonishing. In other words, our database is now moving very rapidly to the cloud, I think because a few reasons. The database has now all these AI capabilities, but also, quite frankly, now people can get it in whatever cloud they want. If you're dedicated to using Microsoft Azure, you can get the Oracle Database in Microsoft Azure. The fully capable Oracle Database in Microsoft Azure with all of our fanciest features, including the new AI features. You can get it at Google.

Temu is a very large company that's growing extremely rapidly. They're basically moving their infrastructure to the Oracle Cloud. That was a very big contract. We're seeing huge growth in multi-cloud from the data centers we've already built and the data—I mean, if it's revenue, it's obviously data centers we've already built. The future, the growth rate in multi-cloud is astonishing. In other words, our database is now moving very rapidly to the cloud, I think because a few reasons. The database has now all these AI capabilities, but also, quite frankly, now people can get it in whatever cloud they want. If you're dedicated to using Microsoft Azure, you can get the Oracle Database in Microsoft Azure. The fully capable Oracle Database in Microsoft Azure with all of our fanciest features, including the new AI features. You can get it at Google.

Speaker Change: <unk> is a very large company that is growing extremely rapidly and they are basically moving their infrastructure to the Oracle cloud.

Speaker Change: That was a very big contract.

Speaker Change: We're seeing a huge growth in multi cloud from the data centers, we've already built and that data I mean, it's revenues that obviously you did a sense were rebuilt.

Larry Ellison: But the future, the growth rate in multi-cloud is astonishing. In other words, our database is now moving very rapidly to the cloud, I think because, a few reasons, because the database has now all these AI capabilities. But also, quite frankly, now people can get it in whatever cloud they want. If you're dedicated to using Microsoft Azure, you can get the Oracle database in Microsoft Azure, the fully capable Oracle database in Microsoft Azure with all of our fanciest features, including the new AI features. You can get it at Google, you can get it at Amazon, you can get it at the Oracle Cloud.

Speaker Change: But the future the growth rate in multi cloud is astonishing in other words.

Speaker Change: Our database is now moving very rapidly to the cloud I think because a few reasons because the database is now all these AI capabilities, but also quite frankly now people can get it in whatever cloud. They wanted if you're dedicated to using Microsoft Azure you can get to the Oracle database on Microsoft Azure.

Speaker Change: Fully capable Oracle database and Microsoft Azure with all of our fancies features including the new AI features you can get into Google you can get it on Amazon you can get to the Oracle cloud. It's all it's all the same in every place and Thats given our customers a lot of comfort that Oracle.

[Company Representative] (Oracle Corporation): You can get it at Amazon. You can get it at the Oracle Cloud. It's all the same in every place. That's given our customers a lot of comfort that Oracle is not only where they store all of their current data, but they want to keep using the Oracle Database, expand their use of the Oracle Database, and move all of that data to the cloud as quickly as they can. They're now able to do it at the cloud of their choosing. The database business is growing rapidly. This next generation of companies like ByteDance, TikTok, which obviously we do business with them, Temu, and others, I mean, there are just lots of these companies. A bunch of the security companies have moved to the Oracle Cloud. It's growth coming from many, many different directions.

You can get it at Amazon. You can get it at the Oracle Cloud. It's all the same in every place. That's given our customers a lot of comfort that Oracle is not only where they store all of their current data, but they want to keep using the Oracle Database, expand their use of the Oracle Database, and move all of that data to the cloud as quickly as they can. They're now able to do it at the cloud of their choosing. The database business is growing rapidly. This next generation of companies like ByteDance, TikTok, which obviously we do business with them, Temu, and others, I mean, there are just lots of these companies. A bunch of the security companies have moved to the Oracle Cloud. It's growth coming from many, many different directions.

Larry Ellison: It's all the same in every place. That's given our customers a lot of comfort that Oracle is not only where they store all of their current data, but they want to keep using the Oracle database and expand their use of the Oracle database, and move all of that data to the cloud as quickly as they can. They're now able to do it at the cloud of their choosing. The database business is growing rapidly. This next generation of companies like ByteDance, TikTok, which obviously we do business with them, T-Move is another, but Uber, there are just lots of these companies.

Speaker Change: Is not only where they store all of their current data that they want to keep using the Oracle database and expand their use of the Oracle database and move all of that and move all of that data to the cloud cloud as quickly as they can and they are now able to do it at the place of the cloud and they're choosing so so the database of the business is growing rapidly.

Speaker Change: This next generation of companies like <unk>.

Speaker Change: It ticked up which obviously, we do business with them.

Speaker Change: T moves another but Uber I mean, there are just lots of these companies.

Larry Ellison: A bunch of the security companies have moved to the Oracle Cloud. A multi, it's growth coming from many, many different directions.

Speaker Change: A bunch of the security companies have moved to the Oracle cloud.

Speaker Change: Our multi its growth coming from many many different directions.

John DiFucci: So if I could just, so Stargate is just part of it. There's a lot of things happening here. And, and, but I just wanted just to clarify, it sounds like it's part of RPO. But is it also part of that 70% in IS revenue growth too? Well, I mean, Stargate is not formed yet. But some of our business with OpenAI, which is one of our partners in in in Stargate, is is part of our future, very much so. but got it You understand? We work with OpenAI. Those are still small numbers in the scheme of everything else we're doing, but it will ultimately be bigger.

Speaker Change: Okay.

[Company Representative] (Oracle Corporation): If I could just—Stargate is just part of it. There are a lot of things happening here. I just wanted to clarify, it sounds like it's part of RPO, but is it also part of that 70% in IAAS revenue growth too? Well. Yeah. Of course. I mean. Go ahead, Sarah. Go ahead. Stargate is not formed yet, but some of our business with OpenAI, which is one of our partners in Stargate, is part of our future, very much so. Got it. Do you understand? We work with OpenAI. Those are still small numbers in the scheme of everything else we're doing, but it will ultimately be bigger. Got it. Thank you very much, and great job. Okay. Next question, please. Let me add one little thing. If Stargate turns out to be everything as advertised, then we've understated our RPO growth. Correct.

John DiFucci: If I could just—Stargate is just part of it. There are a lot of things happening here. I just wanted to clarify, it sounds like it's part of RPO, but is it also part of that 70% in IAAS revenue growth too?

Speaker Change: If I could just Stargate is just part of it there's a lot of things happening here.

Speaker Change: But just wanted to just to clarify it sounds like it's part of our P. O. But is it is it also a part of that 70%.

Speaker Change: <unk> revenue growth too.

Larry Ellison: Well.

Safra Catz: Yeah. Of course. I mean.

Speaker Change: Well, yes.

Larry Ellison: Go ahead, Sarah. Go ahead.

Safra Catz: Stargate is not formed yet, but some of our business with OpenAI, which is one of our partners in Stargate, is part of our future, very much so. Got it. Do you understand? We work with OpenAI. Those are still small numbers in the scheme of everything else we're doing, but it will ultimately be bigger.

Speaker Change: Go ahead Sir.

Speaker Change: Our game is not formed yet, but some of our business with open AI, which is one of our partners.

Speaker Change: In in Star Gate.

Speaker Change: Is is is part of our future very much so.

Speaker Change: But you got it.

Speaker Change: Do you understand we work with open AI. We've we were those are still small numbers in the scheme of everything else, we're doing but it will ultimately be bigger.

John DiFucci: Got it. Thank you very much, and great job.

John DiFucci: Got it. Thank you very much.

Speaker Change: Got it thank you very much.

Ken Bond: Okay. Next question, please.

Speaker Change: Great.

Larry Ellison: Next question, please. Let me add one little thing. If Stargate turns out to be everything is advertised, then we've understated our RPO growth. Correct.

Speaker Change: Okay. Next question. Please let me add let me add one little thing if start Stargate it turns out to be everything as advertised then we've understated our RPM growth.

Larry Ellison: Let me add one little thing. If Stargate turns out to be everything as advertised, then we've understated our RPO growth.

Safra Catz: Correct.

Speaker Change: Correct.

Ben Reitzes: The next question comes from Ben Reitzes with Melious . Your line is open. Hey, thanks, Safra, Larry, great to be speaking with you today. Nice presentation. Your CapEx in the quarter was much higher than expected. I mean, $5 billion more than we expected to get to the $21 billion. And now you're thinking about it going to $25 billion.

[Company Representative] (Oracle Corporation): The next question comes from Ben Reeses with Melius Research. Your line is open. Hey, thanks, Safra and Larry. Great to be speaking with you today. Nice presentation. Your CapEx in the quarter was much higher than expected. I mean, $5 billion more than we expected to get to the $21 billion. Now you're thinking about it going to $25 billion. Just wanted a little more color on what it was spent on. How is it helping you yield more revenue? How do you know $25 billion is the right number for this year? Larry, you usually have some pretty good color on architecture when you answer this question. I'm looking forward to that as well. Okay. Let me start and let Larry make it perfect. The reality is that, as I mentioned on the call, our CapEx is usually about equipment.

Operator: The next question comes from Ben Reitzes with Melius Research. Your line is open.

Speaker Change: The next question comes from Ben Reitzes with Melius Research Your line is open.

Ben Reitzes: Hey, thanks, Safra and Larry. Great to be speaking with you today. Nice presentation. Your CapEx in the quarter was much higher than expected. I mean, $5 billion more than we expected to get to the $21 billion. Now you're thinking about it going to $25 billion. Just wanted a little more color on what it was spent on. How is it helping you yield more revenue? How do you know $25 billion is the right number for this year? Larry, you usually have some pretty good color on architecture when you answer this question. I'm looking forward to that as well.

Ben Reitzes: Okay. Thanks, Safra, Larry great to be speaking with you today nice presentation.

Ben Reitzes: Your capex in the quarter was much higher than expected <unk> 5 billion more than they expected to get to the 21.

Ben Reitzes: And now you are thinking about it going into 'twenty five.

Safra Catz: Do you want a little more color on what it was spent on? How is it helping you yield more revenue? And how do you know $25 billion is the right number for this year? And Larry, you usually have some pretty good color on architecture when you answer this question. So I'm looking forward to that as well. Okay, so let me start and let Larry make it perfect. The reality is that, as I mentioned on the call, our CAPEX is usually about equipment. We have building partners who charge us rent once they've finished constructing things. And when we all of a sudden have higher CAPEX, it means we are filling out data centers, and we are buying components to build our computers, which are different than other people's, and we are putting them on the floor.

Ben Reitzes: A little more color on what it was spent on.

Ben Reitzes: How is it helping your yields more revenue and how do you know 25 is the right number.

Ben Reitzes: For this year.

Ben Reitzes: Hum.

Ben Reitzes: Larry you usually have some pretty good color on architecture. When you answer. This question, so I'm looking forward to that as well.

Safra Catz: Okay. Let me start and let Larry make it perfect. The reality is that, as I mentioned on the call, our CapEx is usually about equipment.

Ben Reitzes: Okay. So let me start and let Larry.

Ben Reitzes: Make it perfect.

Ben Reitzes: They are a.

Speaker Change: The reality is that as I mentioned on the call.

Speaker Change: Our capex is usually about equipment.

[Company Representative] (Oracle Corporation): We have building partners who charge us rent once they've finished constructing things. When we all of a sudden have higher CapEx, it means we are filling out data centers, and we are buying components to build our computers, which are different than other people's, and we are putting them on the floor. We had an opportunity to buy up and for deployment, and we did. We are putting out as much capacity as we possibly can as quickly as we can. I do believe that the $25 billion next year may turn out to be understated. It is all to meet demand. We don't order, we don't build unless we've got orders for our capacity to be built out. We have so much in orders right now that I actually expect—I believe I said on the call—over $25 billion this next quarter.

We have building partners who charge us rent once they've finished constructing things. When we all of a sudden have higher CapEx, it means we are filling out data centers, and we are buying components to build our computers, which are different than other people's, and we are putting them on the floor. We had an opportunity to buy up and for deployment, and we did. We are putting out as much capacity as we possibly can as quickly as we can. I do believe that the $25 billion next year may turn out to be understated. It is all to meet demand. We don't order, we don't build unless we've got orders for our capacity to be built out. We have so much in orders right now that I actually expect—I believe I said on the call—over $25 billion this next quarter.

Speaker Change: We are not we have building partners, who charge offs rent once they've finished constructing things.

Ben Reitzes: And when we all of a sudden have a higher capex. It means we are filling out data centers and we are buying components to build our computers, which are different than other peoples and we are putting them on the floor.

Ben Reitzes: We we had an opportunity to to buy up and Jeff for deployment and so we did and we are putting out as much capacity as we possibly can.

Safra Catz: We had an opportunity to buy up and for deployment. And so we did. And we are putting out as much capacity as we possibly can, as quickly as we can. I do believe that the $25 billion next year may turn out to be understated. So it is all to meet demand. We don't order, we don't build, unless we've got orders for, for our capacity to be built out. And we have so much, so much in orders right now that I actually expect, I believe I said on the on the on the call, over $25 billion this next quarter.

Ben Reitzes: Quickly as we can.

Ben Reitzes: I do believe that the 25 billion next year.

Ben Reitzes: May turn out to be understated.

Ben Reitzes: It is all to meet demand, we don't order, we don't build unless we've got orders for.

Ben Reitzes: For our capacity to be built out and we have so much so much in orders right now that I actually expect I believe I said on the call on the call.

Ben Reitzes: Over $25 25 billion. This next quarter and that is again to match demand.

Larry Ellison: And that is, again, to match demand. Let me add, we recently got an order that said, we'll take all the capacity you have, wherever it is. It could be in Europe, it could be in Asia, we'll just take everything. I mean, we never got an order like that before. The we had to move things around. We did the best we could to give them the capacity they needed. The demand is. astronomical. Now we have to but we have to do this methodically. The reason the reason demand continues to outstrip supply is we can only build these data centers, build these computers so fast.

[Company Representative] (Oracle Corporation): That is, again, to match demand. Let me add, we recently got an order that said, we'll take all the capacity you have wherever it is. This could be in Europe, it could be in Asia, we'll just take everything. I mean, we never got an order like that before. We had to move things around. We did the best we could to give them the capacity they needed. The demand is astronomical. Now, we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers so fast. We're also doing a lot of engineering around high-speed networking. You'll see us making large engineering investments to speed up the networking, the reliability of the networking, and lower the cost of the networking.

That is, again, to match demand.

Larry Ellison: Let me add, we recently got an order that said, we'll take all the capacity you have wherever it is. This could be in Europe, it could be in Asia, we'll just take everything. I mean, we never got an order like that before. We had to move things around. We did the best we could to give them the capacity they needed. The demand is astronomical. Now, we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers so fast. We're also doing a lot of engineering around high-speed networking. You'll see us making large engineering investments to speed up the networking, the reliability of the networking, and lower the cost of the networking.

Ben Reitzes: Let me add.

Ben Reitzes: We recently got an order that said, we will take all the capacity you have wherever it is because it could be in Europe could be in Asia will just take everything.

Ben Reitzes: I mean, we never got an order like that before.

Ben Reitzes: The.

Ben Reitzes: We had to move things around we did the best we could to give them the capacity that they needed.

Ben Reitzes: The demand is.

Ben Reitzes: Astronomical.

Ben Reitzes: Now we have to but wed have to do this methodically. The reason the reason demand continues to outstrip supply as we can only build these data centers build these computers so fast.

Larry Ellison: And we're also doing a lot of engineering around high speed networking, you'll see us making, we are making large, large engineering investments to speed up the networking, the reliability of the network and lower the cost of the network. So we're doing a bunch of things, we are doing a bunch of things to lower our CapEx costs. But even if we do that, CapEx is going to go up because the demand right now seems almost insatiable. I don't know how to describe it. I've never seen anything remotely like it.

Ben Reitzes: And.

Ben Reitzes: We're also doing a lot of engineering around high speed networking Youll see us, making we are making large large engineering investments to speed up the networking and the reliability of the network and lowered the cost of the network.

[Company Representative] (Oracle Corporation): We're doing a bunch of things to lower our CapEx costs. Even if we do that, CapEx is going to go up because the demand right now seems almost insatiable. I mean, I don't know how to describe it. I've never seen anything remotely like this. Thanks a lot, Larry. Appreciate it. I mean, people are calling up and asking us, please, can you find us more capacity? We'll take it wherever. Oh, it's in Malaysia. We'll take it there. Fine. We'll take it there. You got somewhere? Wherever. Are you having any trouble getting GPUs? No. No. Not right now. No. Got it. Thanks for so much color, guys. Appreciate it. Next question, please. The next question comes from Siti Panigrahi with Mizuho. Your line is open. Great. Thanks. Congratulations and a strong Q4, and impressive guidance.

Ben Reitzes: So we're doing a bunch of things we are doing a bunch of things to lower our capex costs.

We're doing a bunch of things to lower our CapEx costs. Even if we do that, CapEx is going to go up because the demand right now seems almost insatiable. I mean, I don't know how to describe it. I've never seen anything remotely like this. Thanks a lot, Larry. Appreciate it. I mean, people are calling up and asking us, please, can you find us more capacity? We'll take it wherever. Oh, it's in Malaysia. We'll take it there. Fine. We'll take it there. You got somewhere? Wherever.

Ben Reitzes: But even if we do that Capex is going to go up because the.

Ben Reitzes: The demand right now it seems almost insatiable I mean.

Ben Reitzes: I don't know how to describe it I've never seen anything remotely like this.

Larry Ellison: Thanks a lot, Larry. People call. I mean, people are calling up and asking us, please, can you find us more capacity? We'll take it wherever. Oh, it's in. It's in Malaysia. We'll take it there. Fine. We'll take it there. We got some wherever.

Speaker Change: Thanks, a lot Larry I mean people are calling up and asking US. Please can you find us more capacity, we'll take it wherever it is.

Ben Reitzes: It's in Malaysia will take it that volume will take it there we got some or wherever.

Ben Reitzes: Are you having any trouble getting GPUs?

Larry Ellison: You having any trouble getting GPUs? No. No, not right now. No. Got it.

Speaker Change: Hi, Kevin I mean, the trouble getting Gpus.

Safra Catz: No.

Larry Ellison: No. Not right now. No.

Ben Reitzes: No.

Ben Reitzes: No not right now no.

Ben Reitzes: Got it. Thanks for so much color, guys. Appreciate it.

Unknown Executive: Thanks for so much color, guys. Appreciate it.

Speaker Change: Got it thanks, so much color guys I appreciate it.

Larry Ellison: Next question, please.

Unknown Executive: Next question, please.

Operator: The next question comes from Siti Panigrahi with Mizuho. Your line is open.

Speaker Change: Next question please.

Sitikantha Panigrahi: The next question comes from Siti Panigrahi with Mizuho, your line is open. Great. Thanks, and congratulations on a strong Q4 and impressive guidance. I want to go back to the cloud database. Mainly, you have a massive database on-prem. So what are you hearing from customers in terms of migrating to cloud? Now you have multi-cloud strategy. You have dedicated alloy customers.

Speaker Change: The next question comes from TT Panic Rajeev with Mizuho. Your line is open.

Siti Panigrahi: Great. Thanks. Congratulations and a strong Q4, and impressive guidance.

Rajeev: Great Thanks and congratulation.

Rajeev: <unk> Q4, and impressive guidance I wanted to go back to the cloud database.

[Company Representative] (Oracle Corporation): I want to go back to the cloud database. Mainly, you have massive database and on-prem. What are you hearing from customers in terms of migrating to cloud? Now you have multi-cloud strategy. You have dedicated Alloy customer. Safra, what's your expectation on the cloud database revenue contribution or driving that 70% growth of OCI in fiscal 2026? Okay. Let me just start. First of all, the database business is really healthy, really growing. In fact, you even see it in the number that I think folks didn't think was possible, which is in license. You should understand that when our customers are buying more licenses, that actually means often that they want to use the bring-your-own-license pricing to go to the cloud.

I want to go back to the cloud database. Mainly, you have massive database and on-prem. What are you hearing from customers in terms of migrating to cloud? Now you have multi-cloud strategy. You have dedicated Alloy customer. Safra, what's your expectation on the cloud database revenue contribution or driving that 70% growth of OCI in fiscal 2026?

Rajeev: Mainly you have massive data database on Prem. So what are the what are you hearing from customers in terms of migrating to cloud now you have multi cloud strategy you have dedicated a large customer and suffer what's your expectation on that cloud database revenue contribution are driving that seven.

Safra Catz: And Safra, what's your expectation on the cloud database revenue contribution driving that 70% growth of OCI in fiscal 26? Okay, let me just start. So first of all, the database business is really healthy, really growing. In fact, you even see it in the number that I think folks didn't think was possible, which is in license. You should understand that when our customers are buying more licenses, that actually means often that they want to use the bring your own license pricing to go to the cloud. So database support is up, is solid, license is up, all the cloud metrics, autonomous consumption, Oracle Cloud, all of multi-cloud is basically using up all capacity that gets put out there.

Speaker Change: 8% growth.

Speaker Change: Okay.

Speaker Change: OCI in fiscal 'twenty six.

Safra Catz: Okay. Let me just start. First of all, the database business is really healthy, really growing. In fact, you even see it in the number that I think folks didn't think was possible, which is in license. You should understand that when our customers are buying more licenses, that actually means often that they want to use the bring-your-own-license pricing to go to the cloud.

Speaker Change: Okay. Let me just start so first of all the database business.

Speaker Change: Is really healthy really growing in fact, you even see it in the number that I think folks didn't think was possible which is in license you should understand that when our customers are buying more licenses that actually means offense.

Speaker Change: We want to use the bring your own license pricing to go to the cloud.

[Company Representative] (Oracle Corporation): Database support is up, is solid, license is up, all the cloud metrics, autonomous consumption, Oracle Cloud, all of multi-cloud is basically using up all capacity that gets put out there. The Oracle Database is on fire, and it is only the beginning. I want to remind you what a significant and large business it is, and the bulk of it is still on-premise. As Larry said, now that you can have it in any of the clouds you like, with the database at Oracle, in all the other clouds, also beyond just OCI, or you can deploy it at Cloud at Customer, another place where the numbers are enormous in growth rate. Consumption going way up, more licensing, more bookings, and a lot of demand.

Database support is up, is solid, license is up, all the cloud metrics, autonomous consumption, Oracle Cloud, all of multi-cloud is basically using up all capacity that gets put out there. The Oracle Database is on fire, and it is only the beginning. I want to remind you what a significant and large business it is, and the bulk of it is still on-premise. As Larry said, now that you can have it in any of the clouds you like, with the database at Oracle, in all the other clouds, also beyond just OCI, or you can deploy it at Cloud at Customer, another place where the numbers are enormous in growth rate. Consumption going way up, more licensing, more bookings, and a lot of demand.

Speaker Change: So database support is that it is solid life.

Speaker Change: Licenses up all of the cloud metrics autonomous consumption Oracle cloud all of multi cloud is well is basically using up all capacity that gets pulled out there. So the Oracle database is on fire and.

Safra Catz: So the Oracle database is on fire. And it is only the beginning. I want to remind you what a significant and large business it is. And the bulk of it is still on premise. As Larry said, now that you can have it in any of the clouds you like, with the database, at Oracle, in all the other clouds, also beyond just OCI, or you can deploy it at clouded customer, another place where the numbers are enormous in growth rates. So consumption going way up, more licensing, more bookings, and a lot of demand. And the database side of the world, for all the reasons Larry said, is just a superb business and extremely compelling, especially to the extent you want to leverage.

Speaker Change: And it is only the beginning.

Speaker Change: Want to remind you what is significant and large business. It is and the bulk of it is still on premise as Larry said now that you can have it in any of the clouds you like as well.

Speaker Change: With the at database you know at Oracle.

Speaker Change: In all of the Ah in all the other clouds also beyond just OCI or you can deploy it at cloud at customer another place where the the numbers are are enormous in growth rate, so consumption going way up more.

Speaker Change: More licensing more bookings and.

Speaker Change: And a lot of demand and the database side of the world for all the reasons.

[Company Representative] (Oracle Corporation): The database side of the world, for all the reasons Larry said, is just a superb business and extremely compelling, especially to the extent you want to leverage artificial intelligence. You asked for a number, an easy number to figure out. Let's say $10 billion of our support revenue, our database support revenue, moves to the cloud. That becomes at least $50 billion because it includes all the computers, all the networking, and all of that. The support was just 20% of the license fee. You move $10 billion of our database to the cloud, it becomes at least $50 billion in cloud revenue. It's almost as big as Oracle is now. Yep. Thanks. Thanks, Larry and Safra. The next question comes from Raymond Lenshow with Barclays. Your line is open. Thank you. Congrats for me as well.

The database side of the world, for all the reasons Larry said, is just a superb business and extremely compelling, especially to the extent you want to leverage artificial intelligence.

Speaker Change: Is the is is just a superb business and extremely compelling, especially to the extent you want to leverage.

Safra Catz: Artificial Intelligence. You asked for a number or an easy number to figure out, but let's say 10% or $10 billion of our support revenue, our database support revenue moves the So that becomes at least $50 billion because it includes all the computers and all the networking and all of that. So the support was just, you know, 20% of the license. So you move 10 billion of our database to the cloud, it becomes at least 50 billion in cloud revenue. It's almost as big as Oracle is.

Speaker Change: Artificial intelligence.

Larry Ellison: You asked for a number, an easy number to figure out. Let's say $10 billion of our support revenue, our database support revenue, moves to the cloud. That becomes at least $50 billion because it includes all the computers, all the networking, and all of that. The support was just 20% of the license fee. You move $10 billion of our database to the cloud, it becomes at least $50 billion in cloud revenue. It's almost as big as Oracle is now.

Speaker Change: You asked for.

Speaker Change: Number or an easy number to figure out so, let's say, 10% or $10 billion of our support revenue our database support revenue moves to the cloud.

Speaker Change: So that becomes at least $50 billion because it includes all the computers and all the networking and all of that.

Speaker Change: So the support was just 20% of the licensee.

Speaker Change: So you move $10 billion of our database to the cloud it becomes at least $50 billion in cloud revenue.

Speaker Change: It's almost as big as oracles now.

Safra Catz: Yep.

Siti Panigrahi: Thanks. Thanks, Larry and Safra.

Speaker Change: Yeah.

Speaker Change: Okay. Thanks.

Safra Catz: Thanks.

Safra Catz: Thanks, Larry and Safra.

Speaker Change: Thanks, Larry and suffer.

Operator: The next question comes from Raimo Lenschow with Barclays. Your line is open.

Raimo Lenschow: The next question comes from Raimo Lenschow with Barclays. Your line is open. Thank you, congrats for me as well.

Speaker Change: The next question comes from Raimo <unk> with Barclays. Your line is open.

Raimo Lenschow: Thank you. Congrats for me as well.

Speaker Change: Thank you congrats from me as well.

Safra Catz: And the one subject we haven't really talked about was applications. But with all the excitement around OCI, like, I think you don't get enough credit on on applications. Can you talk a little bit about what's going on there? Because I had to go back to my model quite a bit to see 22% growth on fusion. And the outlook looks really strong as well. And you know, you talked about accelerating growth there. With all the worries about tariffs and stuff like that, I kind of I'm surprised to see kind of these very, very good numbers from you can maybe talk about that a little bit.

[Company Representative] (Oracle Corporation): One subject we haven't really talked about was applications. With all the excitement around OCI, I think you don't get enough credit on applications. Can you talk a little bit about what's going on there? I had to go back in my model quite a bit to see 22% growth on Fusion, and the outlook looks really strong as well. You talked about accelerating growth there. With all the worries about tariffs and stuff like that, I kind of am surprised to see these very, very good numbers from you. Can you maybe talk about that a little bit? Thank you. Sure. Tariffs have no impact really at all to play in this.

One subject we haven't really talked about was applications. With all the excitement around OCI, I think you don't get enough credit on applications. Can you talk a little bit about what's going on there? I had to go back in my model quite a bit to see 22% growth on Fusion, and the outlook looks really strong as well. You talked about accelerating growth there. With all the worries about tariffs and stuff like that, I kind of am surprised to see these very, very good numbers from you. Can you maybe talk about that a little bit? Thank you.

Speaker Change: One such is we haven't really talked about applications.

Speaker Change: With all the excitement around OCI like I've seen people get enough credit on applications can you talk a little bit about what's going on there because I have to go back to my model quite a bit to see 22% growth on fusion and the outlook looks really strong as well and you talked about accelerating growth there with all the worries about tariffs and stuff like that.

Speaker Change: I'm surprised to see some of these.

Speaker Change: Very very good numbers from you maybe talk about that a little bit. Thank you.

Safra Catz: Thank you. Sure. Tariffs have no impact really at all to play in this. What it does allow our customers to do is do what I do when I announce a year on day 11, is to be much more, really much better run and have a better idea of where their business is and how it's doing, and to do more and spend a lot less. What you're seeing now, and it hasn't been obvious in the numbers, because as you know, we have our strategic SaaS products, and we break that down for you in the release to some extent, and those are going gangbusters.

Safra Catz: Sure. Tariffs have no impact really at all to play in this.

Speaker Change: Sure tariffs have no no impact really at all to play in this in this what it does allow our customers to do is do what I do when I announced Sunday a year on <unk> 11 is to be much more really much.

[Company Representative] (Oracle Corporation): What it does allow our customers to do is do what I do when I announce a year on day 11, is to be really much better run and have a better idea of where their business is and how it's doing, and to do more and spend a lot less. What you're seeing now, and it hasn't been obvious in the numbers because, as you know, we have our strategic SaaS products, and we break that down for you in the release to some extent. Those are going gangbusters. We've had other things in the numbers that have made you not be able to really see. We have some non-strategic products. In addition, we've also had an advertising business, which we are now lapping. I stopped even mentioning it because what's the difference? A few hundred million.

What it does allow our customers to do is do what I do when I announce a year on day 11, is to be really much better run and have a better idea of where their business is and how it's doing, and to do more and spend a lot less. What you're seeing now, and it hasn't been obvious in the numbers because, as you know, we have our strategic SaaS products, and we break that down for you in the release to some extent. Those are going gangbusters. We've had other things in the numbers that have made you not be able to really see. We have some non-strategic products. In addition, we've also had an advertising business, which we are now lapping. I stopped even mentioning it because what's the difference? A few hundred million.

Speaker Change: Much.

Speaker Change: Better run and have a better idea of where their business is and how it's doing and to do more and spend a lot less what youre seeing now and it hasn't been obvious in the numbers because as you know we have our strategic SaaS products and we break that down for you.

Speaker Change: In the release to some extent and those are going gangbusters and we've had other things in the numbers that have made you not be able to really see we have some non strategic products and in addition, we've also had an advertising business, which we are now.

Safra Catz: And we've had other things in the numbers that have made you not be able to really see. We have some non-strategic products, and in addition, we've also had an advertising business, which we are now lapping. I stopped even mentioning it because, you know, what's the difference? A few hundred million, but the reality is what you're starting to see is our strategic SaaS products, as they roll out in our customer sites, and as they ramp up, they're very, very popular. They're obviously compelling because only if you're in the cloud can you use the AI capabilities. See, many customers are still on on-premise ERP products.

Speaker Change: Lapping I stopped even mentioning it because you know what's the difference.

Speaker Change: A few hundred million, but the reality is what youre starting to see is our strategic SaaS products as they rollout in our customer sites and as they ramp up there theyre very very popular there obviously.

[Company Representative] (Oracle Corporation): The reality is what you're starting to see is our strategic SaaS products as they roll out in our customer sites, and as they ramp up, they're very, very popular. They're obviously compelling because only if you're in the cloud can you use the AI capabilities. Many customers are still on-premise ERP products. Those can't really use the advanced agentics and AI capabilities. If you want to use that, and many do for automation and to do more, spend less, you've got to move to Fusion or NetSuite. Those are just very, very compelling. It's just now starting to show through the noise. I would add, let me add one thing, which is companies don't really enjoy buying applications from five different vendors and then making all of those applications work together.

The reality is what you're starting to see is our strategic SaaS products as they roll out in our customer sites, and as they ramp up, they're very, very popular. They're obviously compelling because only if you're in the cloud can you use the AI capabilities. Many customers are still on-premise ERP products. Those can't really use the advanced agentics and AI capabilities. If you want to use that, and many do for automation and to do more, spend less, you've got to move to Fusion or NetSuite. Those are just very, very compelling. It's just now starting to show through the noise.

Speaker Change: Pelling because only if you're in the cloud can you use the AI capabilities see many customers are still on on premise ERP products.

Safra Catz: Those can't really use the advanced agentics and AI capabilities. So if you want to use that, and many do, for automation and to do more, spend less, you've got to move to Fusion or NetSuite, and those are just very, very compelling, and it's just now starting to show through the noise.

Speaker Change: You can't really use the the the advanced at Gentex and AI capabilities. So if you want to use that and many do for automation and to do more spend less you have got to move to fusion or net suite.

Speaker Change: And those are just very very compelling and it's just now starting to show through the noise.

Larry Ellison: I would add, let me add one thing, which is companies don't really enjoy buying applications from five different vendors and then making all of those applications work together.

Larry Ellison: Okay, I would add, let me add one thing, which is companies don't really enjoy buying applications from five different vendors and then making all of those applications work So some companies, not all, but some companies are saying, Oracle, you build these integrated suites of application, and they are all AI agent-based applications, so they're modern applications, they're modern cloud applications. But all of your applications are engineered to work with one another. So our ERP and EPM, you know, supply chain manufacturing, human resources, customer engagement, all those apps are designed as a single suite of applications to run an enterprise or government agency.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: Let me add one thing, which is companies don't really enjoy buying applications from five different vendors and then making all of those applications work together.

[Company Representative] (Oracle Corporation): Some companies, not all, but some companies are saying, Oracle, you build these integrated suites of applications. They are all AI agent-based applications. They are modern applications, modern cloud applications. All of your applications are engineered to work with one another. Our ERP, EPM, supply chain, manufacturing, human resources, customer engagement, all those apps are designed as a single suite of applications to run an enterprise or government agency. All those pieces then work together, so there is no cost of integrating those applications. We are seeing a lot of companies basically saying, I am going to go all Oracle. I am going to buy the complete Oracle suite for ERP, EPM, supply chain, manufacturing. A lot of people do not have manufacturing. Supply chain, human resources, and customer engagement. They are picking us.

Some companies, not all, but some companies are saying, Oracle, you build these integrated suites of applications. They are all AI agent-based applications. They are modern applications, modern cloud applications. All of your applications are engineered to work with one another. Our ERP, EPM, supply chain, manufacturing, human resources, customer engagement, all those apps are designed as a single suite of applications to run an enterprise or government agency. All those pieces then work together, so there is no cost of integrating those applications. We are seeing a lot of companies basically saying, I am going to go all Oracle. I am going to buy the complete Oracle suite for ERP, EPM, supply chain, manufacturing. A lot of people do not have manufacturing. Supply chain, human resources, and customer engagement. They are picking us.

Speaker Change: So some companies not all but some companies are saying Oracle you build these integrated suites of applications and they're all in and they are all AI agent based applications that are modern applications, they're modern cloud applications and but all of your applications are engineered to.

Speaker Change: To work with one another.

Speaker Change: So our ERP in APM.

Speaker Change: Yeah.

Speaker Change: Our supply chain manufacturing human resources customer.

Speaker Change: Customer engagement all of those apps are designed as a single suite of applications to run it at an enterprise or a government agency and all of those all of those pieces then work together.

Larry Ellison: And all those pieces then work together. So there's no cost of integrating those applications. So we're seeing a lot of companies buying. basically saying, I'm going to go all Oracle. I'm going to buy the complete Oracle suite for ERP, EPM, supply chain manufacturing. A lot of people don't have manufacturing. Supply chain, human resources, and customer engagement. They're picking us. If they pick our back office applications, they'll sometimes pick our front office applications over Salesforce as a result of that. And our customer engagement applications are getting better and we continue to invest in those. And our intent is to give some of our biggest customers a one-stop shop where they can buy the entire suite to run their enterprise.

Speaker Change: So there is no cost of integrating those application.

Speaker Change: So we're seeing a lot of companies buying.

Speaker Change: Basically, saying I'm going to Oracle.

Speaker Change: Bobby a complete Oracle suite for ERP <unk> supply chain manufacturing a lot of people don't have manufacturing.

Speaker Change: The supply chain and human resources.

Speaker Change: Customer engagement they are picking us.

[Company Representative] (Oracle Corporation): If they pick our back office applications, they'll sometimes pick our front office applications over Salesforce as a result of that. Our customer engagement applications are getting better and better. We continue to invest in those. Our intent is to give some of our biggest customers a one-stop shop where they can buy the entire suite to run their enterprise from us. That gets rid of a lot of headaches. Everything is in the same database. Everything comes with the same AI data platform with it. All the analytics are there. Everything is there. You don't have to do the system integration. You don't have to buy a bunch of pieces and make them work together. That has been our strategy for some time.

If they pick our back office applications, they'll sometimes pick our front office applications over Salesforce as a result of that. Our customer engagement applications are getting better and better. We continue to invest in those. Our intent is to give some of our biggest customers a one-stop shop where they can buy the entire suite to run their enterprise from us. That gets rid of a lot of headaches. Everything is in the same database. Everything comes with the same AI data platform with it. All the analytics are there. Everything is there. You don't have to do the system integration. You don't have to buy a bunch of pieces and make them work together. That has been our strategy for some time.

Speaker Change: If they pick our back office applications, though sometimes pick our front office applications are for Salesforce as a result of that.

Speaker Change: And our customer engagement applications are getting better and better we continue to invest in us.

Speaker Change: And our intent is to.

Speaker Change: Give our some of our biggest customers a one stop shop, where they can buy the entire suite to run their enterprise from us.

Larry Ellison: And that gets rid of a lot of headaches. Everything is in the same database. Everything comes with the same AI data platform with it. All the analytics are there. Everything is there. You don't have to do the system integration. You don't have to buy a bunch of pieces and make them work together. That has been our strategy for some time. And that's all coming together.

Speaker Change: And that gets rid of a lot of headaches everything isn't the same database everything comes with the same AI did a platform with it all the analytics are they're all everything is there you don't have to do the system integration you don't have to buy a bunch of pieces and make them work together.

Speaker Change: That has been our strategy for some time and Thats all coming together.

[Company Representative] (Oracle Corporation): That's all coming together as a bunch of companies are not successfully navigating this difficult, admittedly difficult transition from on-premise to the cloud. There have been a lot of companies that have not done it very well, and they're casualties. We're picking up a lot of their users. The application business is very, very promising. Then I add Oracle Health, Oracle Banking, Oracle Retail, Hospitality, the different industries on top of that. There's no other apps company that is trying to build such a broad-based, integrated suite of AI cloud application. Who's closest? There's no one attempting to do what we're doing. Makes sense. Thank you. Next question, please. Your final question comes from Brad Zelnick with Deutsche Bank. Your line is open. Great. Thank you very much, and congrats. Safra, Larry, the things you've been telling us would happen are clearly happening.

That's all coming together as a bunch of companies are not successfully navigating this difficult, admittedly difficult transition from on-premise to the cloud. There have been a lot of companies that have not done it very well, and they're casualties. We're picking up a lot of their users. The application business is very, very promising. Then I add Oracle Health, Oracle Banking, Oracle Retail, Hospitality, the different industries on top of that. There's no other apps company that is trying to build such a broad-based, integrated suite of AI cloud application.

Larry Ellison: As a bunch of companies are not successfully navigating this difficult, admittedly difficult transition from on premise to the cloud. There have been a lot of companies that have not done it very well and they're casualties and we're picking up a lot of their So the application business is very, very promising. And then I add Oracle Health and Oracle Banking, Oracle Retail Hospitality, the different industries on top of that. There's no other apps company that is trying to build such a broad-based integrated suite of AI cloud applications. Who's close? There's, you know, there's no one doing, no one attempting to do what we're doing.

Speaker Change: As a bunch of companies are not successfully navigating this.

Speaker Change: Difficult admittedly difficult transition from on premise to the cloud.

Speaker Change: There have been a lot of companies that have not done it very well and they are bare casualties and we're picking up a lot of their users.

Speaker Change: So the application business is very very promising and then I add Oracle health and Oracle banking Oracle retail hospitality the different industries on top of that there is no other apps company.

Speaker Change: That is trying to build such a broad based.

Speaker Change: Integrated suite of AI cloud application.

Raimo Lenschow: Who's closest?

Speaker Change: Who's closest.

Larry Ellison: There's no one attempting to do what we're doing.

Speaker Change: There is.

Speaker Change: Theres no one doing no we're attempting to do what we're doing.

Raimo Lenschow: Makes sense. Thank you.

Unknown Executive: Thank you. Next question, please.

Speaker Change: Hum.

Larry Ellison: Next question, please.

Speaker Change: Thank you.

Speaker Change: Okay next question please.

Operator: Your final question comes from Brad Zelnick with Deutsche Bank. Your line is open.

Brad Zelnick: Your final question comes from Brad Zelnick with Deutsche Bank. Your line is open. Great. Thank you very much and congrats. Safra, Larry, the things you've been telling us would happen are clearly happening, and it's amazing.

Speaker Change: Your final question comes from Brad Zelnick with Deutsche Bank. Your line is open.

Brad Zelnick: Great. Thank you very much, and congrats. Safra, Larry, the things you've been telling us would happen are clearly happening.

Brad Zelnick: Great. Thank you very much and congrats safra, Larry the things you've been telling us what happened.

Speaker Change: Clearly happening and it's amazing as we go forward Larry Oracle has always had the advantage of being the only vendor with enterprise grade technology from apps, all the way down to infrastructure and since the Sundays optimized even down to the silicon.

[Company Representative] (Oracle Corporation): It's amazing. As we go forward, Larry, Oracle has always had the advantage of being the only vendor with enterprise-grade technology from apps all the way down to infrastructure. Since the Sun days, optimized even down to the silicon, why does the full-stack nature of what you do remain important as we enter this new era of computing? Well, such an interesting question because I think to some degree, people thought our biggest weakness is that we were just spread too thin. We're trying to do infrastructure, I mean, database initially, infrastructure, and then applications on top of that infrastructure. What made our database so good? I can argue we made some good technology decisions. The other thing that made our database so good is we developed apps on top of our own database.

It's amazing. As we go forward, Larry, Oracle has always had the advantage of being the only vendor with enterprise-grade technology from apps all the way down to infrastructure. Since the Sun days, optimized even down to the silicon, why does the full-stack nature of what you do remain important as we enter this new era of computing?

Larry Ellison: As we go forward, Larry, Oracle has always had the advantage of being the only vendor with enterprise-grade technology from apps all the way down to infrastructure, and since the Sundae is optimized even down to the silicon, why does the full-stack nature of what you do remain important as we enter this new era Well, such an interesting question, because I think to some degree, people thought our biggest weakness is we were just spread too thin. We're trying to do infrastructure, I mean, database, initially, infrastructure, and then applications on top of that infrastructure. But, you know. What made our database so good?

Speaker Change: Does the full stack nature of what you do remain important as we enter this new era of computing.

Larry Ellison: Well, such an interesting question because I think to some degree, people thought our biggest weakness is that we were just spread too thin. We're trying to do infrastructure, I mean, database initially, infrastructure, and then applications on top of that infrastructure. What made our database so good? I can argue we made some good technology decisions. The other thing that made our database so good is we developed apps on top of our own database.

Speaker Change: Well.

Speaker Change: Such an interesting question because I think to some degree people bought our biggest weaknesses. We were just spread too thin, we're trying to do infrastructure database initially.

Speaker Change: Infrastructure, and then applications on top of that infrastructure.

Speaker Change: But you know.

Speaker Change: What made our database. So good I can argue there we made some good technology decisions, but the other thing that made our database. So good as we had we developed apps on top of our own database and in the same company you have people using the database to develop applications and.

Larry Ellison: I can argue that we made some good technology decisions. But the other thing that made our database so good is we developed apps on top of our own database. In the same company, you have people using the database to develop applications and the people who are developing that database. And if the applications found features missing from the database. They found capabilities they wish were in the database that would make their applications better, more reliable, more secure. We gained those insights by building those applications. Building applications allowed us to understand how to build database better. Building great databases made it much easier to build the cloud.

[Company Representative] (Oracle Corporation): In the same company, you have people using the database to develop applications and the people who are developing that database. If the applications found features missing from the database, they found capabilities they wish were in the database that would make their applications better, more reliable, more secure, we gained those insights by building those applications. Building applications allowed us to understand how to build database better. Building great databases made it much easier to build the cloud. There are a lot of databases that run the cloud. There's a database of our users. All of our resources are in databases. The autonomous database, the Oracle Autonomous Database, is one of the reasons our cloud, at some point, we're going to rechristen our cloud from Gen 2 cloud to the autonomous cloud. Right now, that would be too aggressive. We're not fully autonomous. We're getting there.

In the same company, you have people using the database to develop applications and the people who are developing that database. If the applications found features missing from the database, they found capabilities they wish were in the database that would make their applications better, more reliable, more secure, we gained those insights by building those applications. Building applications allowed us to understand how to build database better. Building great databases made it much easier to build the cloud. There are a lot of databases that run the cloud. There's a database of our users. All of our resources are in databases. The autonomous database, the Oracle Autonomous Database, is one of the reasons our cloud, at some point, we're going to rechristen our cloud from Gen 2 cloud to the autonomous cloud. Right now, that would be too aggressive. We're not fully autonomous. We're getting there.

Speaker Change: The people and the people who are developing that database.

Speaker Change: If the applications.

Speaker Change: <unk> features missing from the database they found capabilities. They wish we were in the database that would make their applications better more reliable more secure we gain those insights by building those application building applications allowed us to understand how to build database better bill.

Speaker Change: <unk>, great databases made it much easier to build the cloud.

Larry Ellison: There are a lot of databases that run the cloud, you know, there's a database of our users, all of our resources are in databases, so the Autonomous Database, the Oracle Autonomous Database, is one of the reasons our cloud, you know, at some point we're going to rechristen our cloud from Gen 2 cloud to the Autonomous Cloud. You know, right now that would be too aggressive, we're not fully autonomous. But we're getting there. And because we were able to use a lot of our existing database technology, specifically the autonomous database technology, to make our cloud more scalable, more reliable.

Speaker Change: There are a lot of databases that run the cloud.

Speaker Change: Becoming a database of our users are.

Speaker Change: All of our resources are and databases. So the autonomous database. The Oracle Autonomous database is one of the reasons are cloud.

Speaker Change: At some point, we're going to re christened our cloud from Gen. Two cloud to the autonomous cloud right now that would be too aggressive, but we're not we're not fully autonomous but we're getting there.

[Company Representative] (Oracle Corporation): Because we were able to use a lot of our existing database technology, specifically the autonomous database technology, to make our cloud more scalable and more reliable. By the way, when you eliminate human labor, when you have an autonomous database, you eliminate human labor, you save money, but you also eliminate human error and human mischief. It makes your cloud much more secure. One of the reasons our cloud is more secure, one of the reasons our cloud is faster, is because we have an autonomous database that runs it. Having all of these levels of technology allows us to solve a technical problem at the right layer of the technology. Should we solve the problem in the network fabric? Should we solve the problem with our cloud computer controller, something we have with other people that we've embedded different hardware to run the cloud?

Because we were able to use a lot of our existing database technology, specifically the autonomous database technology, to make our cloud more scalable and more reliable. By the way, when you eliminate human labor, when you have an autonomous database, you eliminate human labor, you save money, but you also eliminate human error and human mischief. It makes your cloud much more secure. One of the reasons our cloud is more secure, one of the reasons our cloud is faster, is because we have an autonomous database that runs it. Having all of these levels of technology allows us to solve a technical problem at the right layer of the technology. Should we solve the problem in the network fabric? Should we solve the problem with our cloud computer controller, something we have with other people that we've embedded different hardware to run the cloud?

Speaker Change: And because we were able to use a lot of our existing database technology, specifically the autonomous database technology to make our cloud more scalable and more reliable and by the way when you eliminate human labor. When you have an autonomous database you eliminate human labor you save money, but you.

Larry Ellison: And by the way, when you eliminate human labor, when you have an autonomous database, you eliminate human labor, you save money, but you also eliminate human error and human mischief. So it makes your cloud much more secure. One of the reasons our cloud is more secure, one of the reasons our cloud is faster is because we have an autonomous database that runs it. So having all of these levels of technology allows us to solve a technical problem at the right layer of the technology. Should we solve the problem in the network fabric? Should we solve the problem with our cloud computer controller, something we have and other people that we've embedded different hardware to run the cloud.

Speaker Change: Also eliminate human error and human mischief. So it makes your cloud much more secure one of the reasons. Our cloud is more secure one of the reasons. Our cloud is faster is because we have an autonomous database that runs it.

Speaker Change: So having all of these levels of technology allows us to solve a technical problem at the REIT layer of the technology should we solve the problem and the network fabric should we solve the problem with our cloud computer controlled or something we have with other people that we'd be embedded different hardware to run the run that.

Larry Ellison: We added, we have different hardware architecture to make it more secure and more reliable. So we've done innovation in the network. We've done innovation in our host computing. We have an autonomous nonstop Linux operating system that we built, the autonomous database that manages all the data in the cloud and so on. Being able to solve problems at different layers of the technology, understanding the different layers of the technology, allows us to build an integrated solution that is faster, cheaper, more reliable than what our competitors can do. Awesome. Thank you.

[Company Representative] (Oracle Corporation): We have different hardware architecture to make it more secure and more reliable. We have done innovation in the network, and we have done innovation in our host computing. We have an autonomous nonstop Linux operating system that we built, the autonomous database that manages all the data in the cloud, and so on. Being able to solve problems at different layers of the technology, understanding the different layers of the technology, allows us to build an integrated solution that is faster, cheaper, and more reliable than what our competitors can do. Awesome. Thank you. Thank you, Larry, Lenshow, and Brad. A telephonic replay of this conference call will be available for 24 hours on our investor relations website. Thank you for joining us today. With that, I'll turn the call back to Sarah for closing. Thank you. This concludes today's conference. Thank you for joining. You may now disconnect.

We have different hardware architecture to make it more secure and more reliable. We have done innovation in the network, and we have done innovation in our host computing. We have an autonomous nonstop Linux operating system that we built, the autonomous database that manages all the data in the cloud, and so on. Being able to solve problems at different layers of the technology, understanding the different layers of the technology, allows us to build an integrated solution that is faster, cheaper, and more reliable than what our competitors can do.

Speaker Change: Cloud, we added we have different hardware architecture to make it more secure and more and more reliable. So we've done innovation in the network, we've done innovation in our host computing.

Speaker Change: We have an autonomous nonstop Linux operating system that we built the autonomous database that manages all the data in the cloud and so on.

Speaker Change: Being able to solve problems at different layers of the technology understanding the different layers of the technology allows us to build an integrated solution that is faster.

Speaker Change: Faster.

Speaker Change: Cheaper more reliable than what our competitors can do.

Brad Zelnick: Awesome. Thank you.

Speaker Change: Awesome.

Ken Bond: Thank you, Larry [inaudible] and Brad. A telephonic replay of this conference call will be available for 24 hours on our investor relations website. Thank you for joining us today. With that, I'll turn the call back to Sarah for closing.

Unknown Executive: Thank you, Larry, Binsk, and Brad.

Larry Safra: Thank you Larry.

Unknown Executive: A telephonic replay of this conference call will be available for 24 hours on our Investor Relations website. Thank you for joining us today.

Speaker Change: Brad a telephonic replay of this conference call will be available for 24 hours on our Investor Relations website. Thank you for joining us today and with that I'll turn the call back to Sara for closing.

Unknown Executive: With that, I'll turn the call back to Sarah for closing. Thank you for joining.

Operator: Thank you. This concludes today's conference. Thank you for joining. You may now disconnect.

Speaker Change: Thank you. This concludes today's conference. Thank you for joining you may now disconnect.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: Yeah.

Speaker Change:

Speaker Change: Yeah.

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