Chief Executive Officer Clay Magouyrk gave the cloud infrastructure prediction during a meeting with financial analysts, where he said new bookings were coming in from a range of customers, not just OpenAI.
Dough Kehring, Oracle’s chief financial officer, said the company expects $225 billion in overall revenue and adjusted profits of $21 per share by the firm’s fiscal 2030.
Analysts had been expecting $198.4 billion in overall sales and adjusted profits of $18.92 per share for fiscal 2030, according to LSEG data.
Oracle shares closed up 3% after the cloud computing announcement, but declined about 2% in after-hours trading after the broader revenue and profit forecasts.
Oracle said last month that it has racked up hundreds of billions of dollars worth of infrastructure bookings and is working with ChatGPT creator OpenAI on a $500 billion project that will include five new data centers.
For the most recent quarter, Oracle reported cloud revenue jumped 28% to $7.2 billion.
Magouyrk said that during a single 30-day period during the previous quarter, Oracle Cloud Infrastructure, the company’s cloud unit, had booked $65 billion in new commitments, which included a $20 billion deal with Meta Platforms. He said that the newest $65 billion of bookings came from customers other than OpenAI.
“I know some people are questioning, ‘Hey, is it just OpenAI?’ The reality is, we think OpenAI is a great customer, but we have many customers,” Magouyrk said. “This is literally seven deals, four customers, all of them other than OpenAI.”
Oracle also sought to address concerns among investors about its gross margins, which were 68.7% in its most recent quarter and which analysts predict will fall slightly in its fiscal 2027, according to LSEG estimates.
Oracle said it expected to have adjusted gross margins of between 30% and 40% for delivering AI cloud computing infrastructure, while other segments such as more conventional cloud software and infrastructure for business customers would have margins of between 65% and 80%.
Oracle also said that those margins would be steady over the term of a contract, showing a hypothetical example of an AI infrastructure rollout where the company would have about $6.4 billion of costs in each year of a six-year, $60 billion cloud contract.
