Oracle Surges After Raising Revenue Outlook on AI-Driven Cloud Demand

Oracle Corporation (NYSE:ORCL) soared in extended trading after the company raised its annual revenue growth forecast and highlighted strong momentum in cloud and AI infrastructure services.

Fiscal 2026 Guidance Gets a Boost

In its earnings call, CEO Safra Catz projected fiscal 2026 revenue of at least $67 billion, translating to 16.7% year-over-year growth — up from the earlier 15% estimate. While analysts acknowledged investor skepticism, some noted that Oracle could still outperform near-term expectations regardless of whether it hits the long-range targets.

“You don’t have to believe in Oracle’s top-line forecast to see upside ahead,” KeyBanc analysts wrote.

AI Workloads Fuel Cloud Expansion

A major highlight was the Oracle Cloud Infrastructure (OCI) segment, which saw revenue jump 62% year-over-year, driven by enterprise demand for platforms capable of handling AI workloads. Catz confirmed that total cloud growth (apps + infra) is expected to exceed 40% in fiscal 2026, up sharply from 24% this year.

Oracle’s remaining performance obligations — a metric of future booked revenue — rose 41% to $138 billion, which Jefferies called a clear signal of “the breadth of the AI buildout.”

Strong Q4 Beat, But Capex Concerns Linger

For the fiscal fourth quarter, Oracle posted:

• EPS: $1.70 vs. $1.64 expected

• Revenue: $15.9B vs. $15.58B expected

However, analysts at Vital Knowledge pointed out that fulfilling surging demand is “eating up a lot of cash”, with high capital expenditure projections being a point of caution.

Oracle’s bullish guidance and AI-powered growth thesis are now well supported by underlying financial trends. For deeper insights, Oracle’s historical performance can be tracked using Financial Growth metrics, while investor commentary can be explored through its Earnings Transcripts — both offering a closer look into what’s driving this shift.

Key Takeaways

• Oracle raised its FY26 revenue growth forecast to 16.7%, citing AI tailwinds

• OCI revenue surged 62%, outpacing broader cloud market growth

• Booked revenue at record $138B, but higher spending to meet demand could pressure margins