Oracle Corporation stock research
FY2025 Q4
Oracle (ORCL) Gross Margin — Quarter Ended May 31, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin, however, was slightly lower than the preceding quarter and declined from the year-ago period, indicating that cost growth outpaced revenue growth.
Gross margin takeaway
Quarter ended May 31, 2025 · FY2025 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin, however, was slightly lower than the preceding quarter and declined from the year-ago period, indicating that cost growth outpaced revenue growth.
- The strongest observable driver of the gross margin change is the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew at a faster rate than revenue, compressing the margin relative to the year-ago period.
- Compared to the immediately preceding quarter, gross margin was nearly stable, slightly lower. Compared to the same quarter one year earlier, gross margin was notably lower, while both revenue and gross profit were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.2%
Gross profit
$11.2B
Revenue
$15.9B
Cost of revenue
$4.7B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-2.3 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 |
|---|---|---|---|---|
| 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% |
| May 31, 2025 | $15.9B | $11.2B | $4.7B | 70.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2025
-0.1 pts
Year-over-year change
May 31, 2024
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the relationship between cost of revenue and revenue. In the current quarter, cost of revenue grew at a faster rate than revenue, compressing the margin relative to the year-ago period.
Compared to the immediately preceding quarter, gross margin was nearly stable, slightly lower. Compared to the same quarter one year earlier, gross margin was notably lower, while both revenue and gross profit were higher.
Monitor the trend in cost of revenue as a percentage of revenue, as its growth rate relative to revenue directly influences gross margin.