Prime Highlights:
- Oracle confirms a major cloud deal with Meta, driving shares up 3% and showing strong demand for its services.
- The company targets $225 billion in revenue and $21 in adjusted earnings per share by 2030, signaling confidence in long-term growth.
Key Facts:
- Oracle secured $65 billion in new cloud infrastructure contracts this quarter, including deals with four major customers.
- Database and data platform revenue is expected to reach $20 billion by 2030, up from $2.4 billion in 2025 and $3 billion in 2026.
Key Background:
Oracle Corporation saw its shares rise 3% on Thursday after confirming a significant cloud computing deal with social media giant Meta and highlighting growth in its core database and data platform business.
During the current quarter, Oracle reported securing $65 billion in new cloud infrastructure commitments within just 30 days, according to CEO Clay Magouyrk. These agreements span seven contracts from four different customers, including Meta, which operates Facebook and Instagram. Magouyrk emphasized that while OpenAI remains a key client, Oracle’s cloud business growth comes from a broad range of customers.
The Meta deal comes as tech companies invest heavily in cloud and data services. Meta plans to spend $66 billion to $72 billion this year, showing strong demand.
Oracle is growing its cloud business to compete with companies like Amazon and Google and also offers its database on other cloud platforms. Its cloud operations are profitable, with a 30% to 40% gross margin. In July, Oracle secured a large commitment from OpenAI worth over $300 billion, boosting its position in the cloud market.
Oracle expects its database and data platform revenue to reach $20 billion by 2030, up from $2.4 billion in 2025 and $3 billion in 2026. The company aims for $225 billion in revenue and $21 in adjusted earnings per share by 2030, a 31% annual growth rate, exceeding analyst expectations of $198.39 billion in revenue and $18.92 per share.
Doug Kehring, Oracle’s chief financial officer, said the company only pursues opportunities with “clear potential for strong profits,” keeping its growth strategy sustainable and profitable.
The news shows Oracle’s continued growth in cloud and data services, with strong demand from major tech clients and confidence in its long-term business plan.
