Finance
Oracle soars after raising annual forecast on robust cloud services demand
Published by Global Banking & Finance Review®
Posted on June 12, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 12, 2025
2 min readLast updated: January 23, 2026
Oracle increases its annual revenue forecast, driven by strong demand for cloud services and AI workloads, projecting significant growth by 2026.
By Juby Babu
(Reuters) -Oracle raised its annual revenue growth forecast on Wednesday, betting on robust demand for its cloud offerings from companies deploying artificial intelligence, sending its shares up more than 7% after the bell.
For fiscal 2026, Oracle expects total revenue to be at least $67 billion, CEO Safra Catz 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.
Revenue for the quarter ended May 31 stood at $15.90 billion, beating analysts' estimate of $15.59 billion.
Quarterly revenue at Oracle's largest unit, cloud services and license support, came in at $11.70 billion, a 14% increase from last year.
Excluding items, the company earned $1.70 per share in the fourth quarter, compared with estimates of $1.64 apiece.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
Oracle expects total revenue to be at least $67 billion for fiscal 2026, representing an increase from its previous growth projection.
Oracle's quarterly revenue for the period ended May 31 was $15.90 billion, which is a 14% increase from the previous year.
The growth is largely supported by Oracle Cloud Infrastructure and the company's ability to embed generative AI capabilities in its cloud applications.
Excluding items, Oracle earned $1.70 per share in the fourth quarter, surpassing analysts' estimates of $1.64 per share.
Oracle anticipates its total cloud growth rate will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026.
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