Oracle Surges on AI Boom as FY26 Cloud Growth to Blow Past 40%

Oracle’s dazzling set of Q4 financial results includes guidance from CEO Safra Catz that cloud revenue growth will soar more than 40% in the coming 12 months and make Oracle the world’s fastest-growing major cloud provider by a huge margin.

I’ll have more in-depth analysis early next week, but here’s a look at some of the eye-popping results for Oracle’s Q4 ended May 31, plus its expectations for the coming year:

Q4 Cloud revenue was up 27% to $6.7 billion (prior quarter was up 23% to $6.2 billion);
RPO was up 41% to $138 billion, showing an absolutely massive pipeline;
Oracle Cloud Infrastructure growth will accelerate from 50% in FY25 to more than 70% in FY26;
FY26 RPO (remaining performance obligation) is “likely” to grow more than 100%, an extraordinary number;
OCI consumption revenue rose 62% in Q4, leading chairman Larry Ellison to say, “OCI revenue growth rates are skyrocketing — and so is demand”;
Revenue from Oracle’s landmark multi-cloud partnerships whereby its major competitors —Amazon, Microsoft, and Google — offer the Oracle Database to their customers spiked 115% from Q3 to Q4. Ellison noted the company has 23 multi-cloud data centers live, and expects to have 47 more come online within the next 12 months; and
Cloud@Customer revenue grew 104% year over year.

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No Question Re ‘Fourth Hyperscaler’ Credentials

Almost two years ago, I began to refer to Oracle as the “fourth hyperscaler” because of the caliber of customers it was winning and the enormous momentum the OCI business was generating (and continues to generate). Some folks laughed at that idea, and while that’s certainly their right to do so, Oracle has demonstrated over those 24 months that it is winning massive cloud and AI infrastructure deals from customers that could very easily have picked Amazon or Google or Microsoft — yet they chose Oracle.

With these Q4 results and the bold-as-brass projections for what the next 12 months will bring, we must at this point conclude that anyone who doubts Oracle’s ability to compete against and often win business from the original three hyperscalers is simply not paying attention and is woefully stuck in the past.

And while CEO Catz is certainly a subjective voice on the matter, her comments indicate that Oracle is more than eager to compete with anyone and everyone for the world’s biggest cloud and AI deals over the next 12 months.

“Oracle is well on its way to being not only the world’s largest cloud applications company — but also one of the world’s largest cloud infrastructure companies,” Catz said in the Q4-results press release.