Oracle Releases Strong Second-Quarter Earnings Fueled by AI Growth

Oracle reported impressive fiscal 2025 second-quarter financials. The software giant saw significant growth due to AI developers looking for better and more affordable computing power.

Up from $2.5 billion in Q2 2024, the company’s total net income climbed 26% to $3.15 billion. Cloud services reached $10.81 billion in revenue, a 12% increase year over year.

Its cloud infrastructure unit was the big winner in the second quarter. The surge in artificial intelligence projects has boosted demand for upgraded hardware and software capable of handling the necessary computing power. As a result, the company reported a 52% jump in revenue, achieving $2.4 billion.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” said Chairman and CTO Larry Ellison.

With such strong numbers last quarter, the company predicts revenue to grow between 7% and 9% in the current period. This range puts revenue around $14.3 billion versus analysts’ predictions of $14.65 billion.

Oracle AI Development

Oracle, headquartered in Nashville, Tennessee, is making a substantial push to get ahead of cloud rivals like Google and Amazon. The enterprise software company already has agreements in place to provide service for artificial intelligence developers like OpenAI and xAI.

The company also recently signed a contract with Meta. The Facebook parent will use Oracle’s infrastructure for projects involving the Llama family of large language models.

“We just signed an agreement with Meta — for them to use Oracle’s AI Cloud Infrastructure — and collaborate with [the company] on the development of AI Agents based on Meta’s Llama models,” noted Ellison.

In the fall, the IT company announced the development of a new AI supercomputer, which connects over 131,000 NVIDIA graphics processing units. These “cloud computing clusters” are used to train AI models and various other tasks. Oracle has already begun taking purchase orders for the “superclusters.”