Oracle CEO Safra Catz provided a robust growth outlook for fiscal 2026 and 2027, emphasizing that the surging demand for artificial intelligence computing remains strong.
The company expects fiscal 2026 revenue to grow by 15 percent and fiscal 2027 revenue to increase by 20 percent.
Oracle, historically a late entrant to the cloud market dominated by Microsoft and Amazon, has been actively enhancing its cloud offerings by integrating AI capabilities to handle vast amounts of data. To accommodate the growing demand for AI-powered services, the company has been investing heavily in infrastructure, including data centers and semiconductor technology.
Oracle Chairman Larry Ellison confirmed that the company remains on track to double its data center capacity within the calendar year, citing record levels of customer demand as a key driver of growth, Reuters news report said.
As part of its AI expansion strategy, Oracle is involved in Stargate, a joint venture with OpenAI and SoftBank, which has committed up to $500 billion toward advancing AI capabilities in the United States. Analysts view this initiative as a significant step in solidifying Oracle’s position in the AI-driven cloud computing market. D.A. Davidson analyst Gil Luria described Oracle’s guidance for the next fiscal year as impressive, highlighting the company’s ability to scale its Oracle Cloud business effectively.
On the company’s post-earnings conference call, Catz revealed that Oracle’s capital expenditure for the fiscal year will more than double to $16 billion, underscoring the company’s aggressive push to expand its cloud and AI infrastructure. She also noted that demand for Oracle’s cloud services is dramatically outstripping supply, reinforcing the urgency behind the company’s investment strategy.
Despite Oracle’s optimism, some industry analysts remain cautious. Valoir CEO Rebecca Wettemann pointed out that a critical question still looms over cloud infrastructure providers — whether they are overspending and overbuilding to support AI workloads that may not materialize or may prove economically unsustainable without significant improvements in AI models and underlying technology.
Oracle’s strong cloud momentum was evident in its third-quarter results, with cloud revenue rising 23 percent to $6.2 billion. Overall, the company reported total revenue of $14.13 billion, demonstrating the growing impact of AI-driven demand on its financial performance. As Oracle continues to expand its cloud and AI capabilities, its strategic investments and partnerships are expected to play a crucial role in shaping its future growth trajectory.
Baburajan Kizhakedath
