By Amelia Roberts | MEXICO CITY – 2025/06/12 04:52:16

Fueled by strong demand for its cloud services from businesses implementing artificial intelligence, Oracle has increased its annual revenue growth forecast, causing its stock to jump more than 7% in after-hours trading.

According to CEO Safra Catz, Oracle anticipates total revenue to reach at least $67 billion for fiscal year 2026. Catz made this statement during a post-earnings call.

The updated forecast projects annual revenue growth of approximately 16.7%, surpassing Oracle’s previous estimate of 15% growth.

“We expect our total cloud growth rate – applications plus infrastructure – will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026,” Catz stated.

The expansion is primarily driven by Oracle Cloud Infrastructure (OCI) and its support for AI workloads.

Rebecca Wettemann, CEO of industry analyst firm Valoir, believes that Oracle’s confidence in OCI revenue is justified. “The multi-cloud approach and the increasing reliance of Oracle enterprise submission cloud customers on OCI to support their enterprise data needs are crucial drivers,” she said.

Wettemann also noted that the company’s strategy of integrating generative AI capabilities into its cloud suite at no extra cost has lowered adoption barriers and spurred experimentation.

Revenue for the quarter ending May 31 reached $15.90 billion, exceeding analysts’ expectations of $15.59 billion.

oracle’s largest division,cloud services and license support,generated quarterly revenue of $11.70 billion, a 14% increase compared to the previous year.

the company’s fourth-quarter earnings, excluding certain items, were $1.70 per share,surpassing estimates of $1.64 per share.

“We expect our total cloud growth rate – applications plus infrastructure – will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026,”

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