Oracle Corporation stock research
FY2025 Q2
Oracle (ORCL) Gross Margin — Quarter Ended Nov 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but weakened relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Nov 30, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but weakened relative to the same quarter a year ago.
- Gross profit grew faster than cost of revenue compared to the prior quarter, driving the margin improvement. The year-over-year decline in gross margin was due to cost of revenue increasing at a faster pace than gross profit.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased, resulting in a slightly improved gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue rose more, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.9%
Gross profit
$10.0B
Revenue
$14.1B
Cost of revenue
$4.1B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 29, 2024 | $13.3B | $9.4B | $3.9B | 70.9% |
| May 31, 2024 | $14.3B | $10.4B | $3.9B | 72.5% |
| Aug 31, 2024 | $13.3B | $9.4B | $3.9B | 70.6% |
| Nov 30, 2024 | $14.1B | $10.0B | $4.1B | 70.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2024
+0.3 pts
Year-over-year change
Nov 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue compared to the prior quarter, driving the margin improvement. The year-over-year decline in gross margin was due to cost of revenue increasing at a faster pace than gross profit.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased, resulting in a slightly improved gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue rose more, leading to a lower gross margin.
Monitor the trend in cost of revenue relative to revenue, as its faster growth year-over-year compressed gross margin.