On March 10, Oracle CEO Safra Catz provided a positive outlook for fiscal 2026 and 2027, reflecting the sustained high demand for advanced artificial intelligence computing. The company anticipates a 15% revenue growth in fiscal 2026 and forecasts a 20% increase in fiscal 2027, exceeding analysts' expectations.
Oracle, which entered the cloud market later than Microsoft and Amazon, has been enhancing its cloud services by integrating AI for efficient data processing. The company is strategically expanding its data center capacity and semiconductor technology investments to support its data-intensive AI services.
Larry Ellison, Oracle's Chairman, announced plans to double data center capacity this year due to record customer demand. The company is also involved in an AI joint venture with OpenAI, Softbank, and others in the United States.
Analyst Gil Luria from D.A. Davidson praised Oracle's growth prospects, emphasizing the company's ability to expand its cloud business successfully. Catz disclosed that Oracle's capital expenditure for the fiscal year would exceed $16 billion, indicating a significant increase to meet surging demand.
Rebecca Wettemann, CEO of Valoir, raised concerns about cloud infrastructure providers potentially overspending to support AI workloads. Oracle's third-quarter cloud revenue surged by 23% to $6.2 billion, despite falling slightly short of the $14.39 billion average revenue estimate, reporting $14.13 billion. Oracle's adjusted earnings stood at $1.47 per share, slightly below the estimated $1.49 per share.