Stunning Revenue Forecast Defies Wall Street Expectations
Oracle Corporation’s stock soared by over 23% in its biggest single-day gain in 26 years after the company unveiled a bold new forecast for its cloud infrastructure business. Despite missing Wall Street’s quarterly financial targets, the market reacted overwhelmingly to Oracle’s upward revision of its
Oracle Cloud Infrastructure (OCI) revenue projections, signaling confidence in the company’s aggressive expansion strategy[2][3].
Multi-Billion-Dollar Contracts Propel Future Revenue
- Oracle signed four multibillion-dollar cloud contracts with three major customers this quarter, pushing its
remaining performance obligations (RPO) — a measure of contracted but not yet booked revenue — up 359% year-over-year to $455 billion[2][3].
- CEO Safra Catz projected that RPO will likely surpass half-a-trillion dollars “over the next few months” as further large-scale deals are finalized[2][3].
Ambitious Five-Year Cloud Revenue Roadmap
Citing surging customer demand and a string of high-profile contract wins, Oracle detailed an aggressive
five-year revenue forecast for its cloud infrastructure segment:
- $18 billion in OCI revenue for the current fiscal year (up 77% year-over-year)
- $32 billion in fiscal 2027
- $73 billion in fiscal 2028
- $114 billion in fiscal 2029
- $144 billion in fiscal 2030
Much of this forecast is already reflected in reported RPO, with Catz noting that “the scale of our recent RPO growth enables us to make a large upward revision to the Cloud Infrastructure portion of Oracle’s overall financial plan”[1][2][4].
Strategic Partnerships and AI Integration Fuel Growth
Oracle’s rapid ascendancy in the cloud space is underpinned by partnerships with industry “hyperscalers” such as Amazon, Google, and Microsoft. CTO Larry Ellison announced that Oracle’s multicloud database revenue grew 1,529% year-on-year in the last quarter. The company plans to bring
another 37 data centers online for hyperscale partners, raising the total to 71[1][3].
Recent collaborations further demonstrate Oracle’s commitment to the AI ecosystem:
- Oracle struck an agreement with
OpenAI to develop 4.5 gigawatts of U.S. data center capacity, part of
Project Stargate.
- In August, Oracle embedded
GPT-5 from OpenAI directly into its applications, and it will soon launch an
Oracle AI Database service that allows clients to run AI models directly on their own data[3].
Oracle Still Trails Cloud Giants But Gaining Ground
While Oracle’s cloud revenue run rate stands at roughly $29 billion—significantly below Microsoft Azure’s $75 billion and Amazon Web Services’ $124 billion—the company’s rapid expansion and investment in AI and infrastructure are steadily closing the gap[1][3].
With shares up 45% for the year and a market cap poised to surpass $800 billion, Oracle’s cloud ambitions mark a defining moment in the company’s evolution from a traditional enterprise software giant to a central player in the AI-driven cloud era[3].
