Oracle (ORCL.N) expects its cloud infrastructure business to generate $166 billion in revenue by fiscal 2030, accounting for nearly 75% of total sales, as it expands rapidly through AI-driven contracts and enterprise demand.
CEO Clay Magouyrk told analysts that new bookings are coming from a broad customer base, not just OpenAI, and highlighted a recent $65 billion influx in cloud commitments over a 30-day period — including a $20 billion deal with Meta Platforms (META.O).
The company’s CFO, Dough Kehring, projected total revenue of $225 billion and adjusted earnings of $21 per share for 2030, beating analysts’ forecasts compiled by LSEG. Oracle’s shares rose 3% after the announcement.
Oracle’s cloud revenue grew 28% in its latest quarter to $7.2 billion, while the company continues to invest heavily in AI infrastructure. It is currently working with OpenAI on a $500 billion project that will include the construction of five new data centers.
Oracle addressed investor concerns about profit margins, saying AI cloud services would operate with margins of 30%–40%, while its traditional software and enterprise segments would remain between 65%–80%.
Magouyrk dismissed speculation that Oracle’s growth is overly dependent on OpenAI, noting: “This is literally seven deals, four customers, all of them other than OpenAI.”
