Oracle has forecast that its cloud infrastructure revenue will surge to $166 billion by fiscal 2030, representing nearly 75 percent of total company sales. The projection underscores Oracle’s accelerating transformation into a cloud-first enterprise technology provider and its growing influence in the AI infrastructure market.
Oracle’s Cloud Vision: $225 Billion Total Revenue Target by 2030
During a financial analyst meeting on Thursday, Oracle Cloud Infrastructure (OCI) CEO Clay Magouyrk and Chief Financial Officer Dough Kehring shared the company’s long-term financial goals.
Total projected revenue: $225 billion by fiscal 2030
Adjusted profits: $21 per share
Cloud infrastructure revenue: $166 billion (≈75 percent of total sales)
Following the announcement, Oracle’s stock rose 3 percent in regular trading but slipped around 2 percent in after-hours activity as investors digested the broader revenue and profit outlook, Reuters news report said.
Surging Cloud Bookings Beyond OpenAI
A key highlight from Magouyrk’s remarks was that Oracle’s latest wave of bookings came from a diverse customer base, not just its well-publicized partnership with OpenAI.
During a 30-day period last quarter, OCI secured $65 billion in new cloud infrastructure commitments, including a $20 billion deal with Meta Platforms.
This follows Oracle’s recent statement that it has accumulated hundreds of billions of dollars in infrastructure bookings and is collaborating with OpenAI on a $500 billion project involving five new AI-ready data centers.
In addition to Meta and OpenAI, Oracle is engaging with several technology, telecom, and financial sector clients as enterprises increasingly adopt its high-performance, AI-optimized cloud infrastructure. The company is also collaborating with OpenAI on a $500 billion multi-year project involving the development of five new data centers designed to support next-generation AI workloads.
AI Infrastructure: Oracle’s New Growth Engine
Oracle’s expansion is fueled by surging global demand for AI and high-performance computing (HPC) capacity. As enterprises deploy generative AI tools, large language models, and data-intensive analytics workloads, Oracle is positioning OCI as a cost-efficient and scalable alternative to rivals such as AWS, Microsoft Azure, and Google Cloud.
In the most recent quarter, Oracle’s cloud revenue jumped 28 percent year over year to $7.2 billion, driven by both AI workloads and enterprise cloud migration.
Balancing Growth with Margins
Oracle also addressed investor concerns about profitability. Its gross margin stood at 68.7 percent in the latest quarter, and analysts expect a modest decline by fiscal 2027.
The company outlined margin expectations for different business segments:
AI cloud infrastructure: 30 percent–40 percent adjusted gross margin
Traditional cloud software & enterprise infrastructure: 65 percent–80 percent adjusted gross margin
Oracle emphasized that these margins will remain stable throughout long-term contracts. For example, a six-year, $60 billion AI cloud deal would maintain $6.4 billion in costs annually, ensuring predictable profitability and operational consistency.
Oracle’s Competitive Position in the AI Cloud Race
Oracle’s growth outlook positions it as a formidable competitor in the rapidly expanding AI cloud ecosystem. By integrating AI infrastructure with enterprise software, databases, and applications, Oracle aims to differentiate itself through end-to-end cloud efficiency and AI workload optimization.
With partnerships spanning OpenAI, Meta, and other global enterprises, Oracle’s cloud transformation is reshaping its business model from traditional software licensing to high-growth, high-value infrastructure services.
Conclusion
Oracle’s fiscal 2030 forecast underscores its confidence in the long-term demand for cloud and AI infrastructure. With a target of $225 billion in total revenue and $166 billion from cloud services, the company is betting big on its ability to capture enterprise AI workloads, build next-generation data centers, and strengthen its position in a trillion-dollar cloud economy.
Rajani Baburajan
