Oracle’s stock experienced a remarkable surge of up to 39% in early trading on Wednesday, following the company’s ambitious forecast for its AI-driven cloud revenue. Oracle announced that it anticipates this revenue stream will soar to $144 billion by the end of its fiscal year 2030, a staggering increase from its expected revenue of less than $20 billion for the current fiscal year.
CEO Safra Catz stated that Oracle Cloud Infrastructure revenue is projected to rise 77% to $18 billion this fiscal year, with further increases expected in subsequent years. The company estimates revenues will grow to $32 billion, $73 billion, $114 billion, and finally reach $144 billion by 2030.
This optimistic outlook comes despite Oracle’s recent earnings report for the first quarter of its fiscal year 2026. The company posted a revenue of $14.9 billion, slightly under the $15 billion that analysts had expected. Additionally, Oracle’s adjusted earnings per share of $1.47 fell short of the anticipated $1.48.
A key factor behind Oracle’s bullish forecast is its increase in remaining performance obligations (RPO), representing the total value of future contract revenue based on customer agreements. Catz revealed that Oracle signed four multi-billion dollar contracts in Q1, resulting in a contract backlog that surged 359% to $455 billion. The company expects its RPO to exceed half a trillion dollars in the near future. Notable partnerships include significant cloud contracts with major players in the AI sector, such as OpenAI, xAI, and Meta.
Oracle has also been acquiring substantial quantities of Nvidia’s highly sought-after GPUs, utilizing this computing capability to compete with cloud giants like Amazon and Google. The company has heavily invested in data center infrastructure to bolster its AI initiatives, which has led to workforce reductions and discussions around eliminating cash raises and bonuses for employees this year.
Looking ahead, Oracle plans to escalate its capital expenditures to approximately $35 billion in 2026, up from its previous forecast of $25 billion, reflecting the company’s commitment to expanding its AI capabilities.
Over the past year, Oracle’s stock has surged more than 70%. Recent earnings announcements highlighted a deal projected to generate over $30 billion in revenue annually starting fiscal year 2028, with OpenAI believed to be the partner involved. However, further details on this deal were not disclosed.
Investors also expressed interest in Oracle’s involvement in the Stargate AI project—a $500 billion initiative unveiled at the White House in January, featuring collaboration between Oracle, OpenAI, SoftBank, and government officials. Although reports emerged in July about delays with the project, OpenAI later stated that their partnership with Oracle for a data center in Abilene, Texas, was progressing.
Despite mixed signals surrounding the Stargate project’s timeline, Catz assured investors that aspects of Oracle’s business with OpenAI would contribute to the company’s future growth, although concrete updates on Stargate remain scarce.
