Oracle Projects $166B Cloud Revenue by 2030

• Oracle forecasts cloud infrastructure to reach $166B by 2030, driven by diversified demand and large-scale AI-related bookings.

Cloud Growth Drives Long-Term Outlook

Oracle expects its cloud infrastructure business to generate $166 billion in revenue by fiscal 2030, accounting for nearly three-quarters of its total sales. The projection was shared by Clay Magouyrk, CEO of Oracle Cloud Infrastructure, during a recent analyst meeting. He emphasized that new bookings are coming from a broad customer base, not limited to high-profile partners like OpenAI. This outlook reflects Oracle’s growing role in large-scale AI deployments and enterprise cloud services.

Chief Financial Officer Dough Kehring outlined Oracle’s wider financial goals, including $225 billion in total revenue and adjusted earnings of $21 per share by 2030. These figures exceed analyst expectations, which had forecast $198.4 billion in revenue and $18.92 per share in earnings, according to LSEG data. Following the announcement, Oracle’s stock rose 3% but later dipped 2% in after-hours trading after the broader financial targets were disclosed. The company attributes its optimism to strong infrastructure demand and expanding customer commitments.

AI Infrastructure and Margin Strategy

Oracle reported a 28% year-over-year increase in cloud revenue, reaching $7.2 billion in the most recent quarter. During a single 30-day period, the firm booked $65 billion in new cloud commitments, including a $20 billion agreement with Meta Platforms. Magouyrk clarified that these deals involved four customers and seven contracts, none of which included OpenAI. To address investor concerns, Oracle detailed its margin expectations: 30–40% for AI infrastructure and 65–80% for conventional cloud services.

The company presented a hypothetical six-year, $60 billion AI infrastructure contract to illustrate cost stability, estimating $6.4 billion in annual expenses. Oracle stated that margins would remain consistent throughout such agreements, offering predictability for long-term planning. Gross margins stood at 68.7% last quarter, though analysts anticipate a slight decline by fiscal 2027. Oracle maintains that its diversified cloud offerings will help balance profitability across segments.

Oracle’s Expanding Data Center Footprint

Oracle recently disclosed a $500 billion initiative with OpenAI that includes building five new data centers. This expansion aligns with global trends in AI adoption, which are fueling demand for scalable cloud infrastructure. According to industry analysts, Oracle’s aggressive booking pace signals a shift in enterprise cloud procurement, with more firms seeking tailored solutions for AI workloads. The company’s ability to attract large-scale commitments from multiple sectors may prove critical to meeting its 2030 targets.