Oracle Corporation stock research
FY2025 Q3
Oracle (ORCL) Gross Margin — Quarter Ended Feb 28, 2025
Revenue was unchanged from the prior quarter, while cost of revenue increased, leading to a slightly lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and the gross margin was nearly stable.
Gross margin takeaway
Quarter ended Feb 28, 2025 · FY2025 Q3
Revenue was unchanged from the prior quarter, while cost of revenue increased, leading to a slightly lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and the gross margin was nearly stable.
- The gross margin weakened compared to the prior quarter due to a higher cost of revenue on the same revenue base. Relative to the same quarter a year ago, the margin was nearly unchanged as revenue and cost of revenue grew at a similar pace.
- Current quarter gross profit and gross margin were slightly lower than the immediately preceding quarter, while both were higher than the same quarter one year earlier. Revenue was flat sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.3%
Gross profit
$9.9B
Revenue
$14.1B
Cost of revenue
$4.2B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Feb 28, 2025 | $14.1B | $9.9B | $4.2B | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-0.6 pts
Year-over-year change
Feb 29, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened compared to the prior quarter due to a higher cost of revenue on the same revenue base. Relative to the same quarter a year ago, the margin was nearly unchanged as revenue and cost of revenue grew at a similar pace.
Current quarter gross profit and gross margin were slightly lower than the immediately preceding quarter, while both were higher than the same quarter one year earlier. Revenue was flat sequentially and higher year-over-year.
Monitor the relationship between cost of revenue and revenue trends to assess whether margin pressure continues.