Oracle Lifts FY26 Revenue Target, Bets Big on AI Cloud Demand

Oracle (NYSE: ORCL) shares jumped in after-hours trading following upbeat fiscal Q4 results and a more ambitious revenue target for FY26, as the company positions itself at the forefront of the enterprise AI wave.

Q4 Snapshot

• Adjusted EPS: $1.70 vs. $1.64 expected

• Revenue: $15.9 billion vs. $15.58 billion consensus

• Oracle Cloud Infrastructure (OCI) revenue: +62% YoY

• Remaining performance obligations: $138 billion, up 41% YoY

The beat on both top and bottom lines reflects accelerating demand for Oracle's cloud offerings—especially as enterprises ramp up AI deployment across functions.

FY26 Guidance: Growth Reaccelerates

CEO Safra Catz forecasted total revenue of at least $67 billion in FY26, implying 16.7% annual growth, up from the previous estimate of 15%. A significant portion of that growth is expected to stem from Oracle Cloud Infrastructure and AI-focused workloads.

• Total cloud growth (applications + infrastructure): Expected to exceed 40%, compared to 24% in FY25

• Rising capital expenditure levels, however, point to increased cash burn to meet surging infrastructure demands

Analyst Sentiment

While KeyBanc analysts acknowledged investor skepticism—given Oracle's past underwhelming follow-through—they noted that interim upside remains possible even if long-term targets fall short.

Jefferies called the $138B in remaining performance obligations a "clear sign of sustained enterprise AI demand."

Oracle's Position in the AI Infrastructure Race

Oracle's pivot to infrastructure-heavy services through OCI and its alignment with AI enterprise requirements is reshaping its revenue profile. However, this transition also necessitates aggressive capex, a trend investors must track closely.

For a data-backed view of Oracle's financial evolution:

• Full Financial as Reported — for Oracle's comprehensive income statements and balance sheets over time

• Company Rating — to assess fundamental strength, market sentiment, and risk outlook

Oracle is no longer just a legacy database giant. As AI reshapes enterprise software, Oracle's aggressive cloud buildout could become a long-term driver—if it can execute at scale.