Oracle’s revenue growth outlook is being driven by strong momentum in its cloud business, particularly in cloud infrastructure and AI workload support.
For fiscal year 2026, Oracle has raised its total revenue forecast to at least $67 billion — a 16.7 percent increase over the previous year — buoyed by significant demand for Oracle Cloud Infrastructure (OCI) and AI-enabled enterprise solutions.
Oracle’s fiscal year 2025 revenues were up 8 percent to $57.4 billion. Oracle’s quarterly revenues were up 11 percent to $15.9 billion. Oracle did not reveal the contribution of AI-enabled enterprise solutions to its revenue.
Key drivers behind Oracle’s revenue growth include:
Surge in Cloud Infrastructure Adoption:
OCI is emerging as the central engine of Oracle’s growth. In Q4 FY25, OCI consumption revenue jumped 62 percent, with expectations for even faster growth in FY26. The company plans to expand from 23 to 70 MultiCloud data centers in the next 12 months. Revenue from these setups grew 115 percent quarter-over-quarter, highlighting rising demand across Amazon, Google, and Azure environments.
Enterprise AI Integration:
Oracle’s strategy of embedding generative AI directly into its application suite at no extra cost is removing friction for enterprise adoption. This move has boosted experimentation and deployment across Oracle’s base, further solidifying customer reliance on its cloud platform.
Growth in Cloud Services and License Support:
The company’s largest revenue segment — cloud services and license support — generated $11.7 billion in Q4 FY25, up 14 percent year-over-year. For the full fiscal year, this segment accounted for $44 billion, growing 12 percent year-over-year. This strong base is expected to accelerate further with growing hybrid and multi-cloud deployments.
Oracle Cloud@Customer Momentum:
Oracle Cloud@Customer, which delivers OCI capabilities within a customer’s own data center, posted 104 percent year-over-year revenue growth. With 30 more dedicated centers in development, this model is attracting organizations with stringent data residency or latency needs.
Robust Deferred Revenues and RPO Outlook:
Oracle reported short-term deferred revenues of $9.4 billion and expects its Remaining Performance Obligations (RPO) to grow more than 100 percent in FY26, signaling strong future billing potential.
Increasing Operating Cash Flow:
Operating cash flow rose 12 percent to $20.8 billion in FY25, providing ample capital to fund expansion of data centers, cloud services, and AI innovations.
CEO Safra Catz emphasized that FY26 cloud growth — encompassing both applications and infrastructure — is projected to exceed 40 percent, compared to 24 percent in FY25. Within this, OCI growth alone is forecast to surpass 70 percent, positioning Oracle as a major player in both cloud infrastructure and enterprise AI delivery.
InfotechLead.com News Desk
