Oracle CEO Safra Catz revealed in a statement Monday that the company expects to achieve significant revenue growth in fiscal 2026 and fiscal 2027. This forecast is based on a sharp rise in demand for advanced artificial intelligence computing, and this trend does not appear to be weakening. According to LSEG, Oracle expects revenue to grow by 15% in fiscal 2026, while revenue growth in fiscal 2027 is expected to reach 20%, both exceeding analysts' expectations.
Although Oracle has entered the cloud market relatively late, dominated by Microsoft and Amazon, the company is increasing the appeal of its cloud services by actively introducing artificial intelligence technologies. To support these data-intensive AI services, Oracle is strategically expanding its infrastructure, including investment in data centers and semiconductor technologies. Oracle Chairman Larry Ellison said the company plans to double the capacity of data centers within this calendar year to meet record customer demand.
In addition, Oracle has also participated in an artificial intelligence joint venture called Stargate, which includes ChatGPT developers OpenAI and SoftBank. The joint venture promises to invest up to $500 billion in the U.S. to develop artificial intelligence capabilities. Analyst Gil Luria believes Oracle has excellent guidance in the next fiscal year, reflecting the company's strong ability to grow its cloud business.
During the earnings call, Katz also mentioned that the company's capital expenditure will double to $16 billion this fiscal year, and said demand "significantly" exceeds supply. However, Rebecca Wettemann, CEO of industry analytics firm Valoir, raised a key question about whether cloud infrastructure providers are overinvesting and overbuilding to support AI workloads that may not be achieved or are not cost-effective.
In the latest financial report, Oracle's cloud revenue in the third quarter increased by 23% year-on-year to $6.2 billion. Nevertheless, the company reported a total revenue of $14.13 billion, failing to meet the market's general expectations of $14.39 billion. According to adjusted data, the company's earnings per share was $1.47, compared with the market expectation of $1.49.
Key points: Oracle expects revenue in fiscal 2026 and 2027 to grow by 15% and 20% respectively, exceeding analyst expectations. The company is actively expanding its infrastructure to support the growing demand for AI cloud services. Oracle's capital expenditure is expected to exceed $16 billion this fiscal year, and cloud revenue grew 23% in the third quarter.