Oracle recently raised its annual revenue growth forecast in anticipation of a solid demand for its cloud offerings from companies deploying AI, sending its shares up more than 7%. For fiscal year 2026, Oracle expects total revenue to be at least $67 billion, Safra Catz CEO said on a post-earnings call.
With the new forecast, annual revenue is expected to grow by around 16.7%, compared with Oracle’s prior projection of a 15% growth. “We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026”, Catz said.
The company’s growth is largely supported by its Oracle Cloud Infrastructure solution and support for AI workloads. Oracle’s confidence in OCI revenue comes with good reason, said Rebecca Wettemann, CEO of industry analyst firm Valoir. “The multi-cloud approach and the increasing reliance of Oracle enterprise application cloud customers on OCI to support their enterprise data needs are important drivers”. The company’s willingness and ability to embed generative AI capabilities in its cloud suite of applications at no additional cost have reduced adoption barriers and encouraged experimentation, Wettemann added.
Source: Reuters
Image Credit: Oracle/Stock Image
