Cloud infrastructure to contribute 75% of sales by 2030: Oracle

• Oracle aims to hit $225b in annual revenue and adjusted profits of $21 per share by 2030, CFO says.

When Oracle’s leadership lined up this week to discuss the company’s long-term vision with investors, the conversation was unmistakably centered on one thing: cloud infrastructure.

Clay Magouyrk, CEO of Oracle’s cloud unit, projected that by fiscal 2030, the cloud infrastructure segment will generate a staggering $166 billion—covering nearly three-quarters of Oracle’s total revenue by that time.

Magouyrk also underscored the diversity of Oracle’s customer base. He seemed eager to dispel any notion that OpenAI—a high-profile client—was Oracle’s only major cloud partner.

In a recent 30-day window last quarter, Oracle Cloud Infrastructure secured $65 billion in new bookings. Notably, these deals included a gigantic $20 billion commitment from Meta Platforms, alongside other large contracts involving four clients apart from OpenAI.

“This isn’t just about OpenAI,” Magouyrk stated. “We have a deep and varied pool of enterprise customers driving this momentum.”

The financial outlines Oracle shared were just as ambitious. CFO Dough Kehring revealed that by fiscal 2030, Oracle aims to hit $225 billion in annual revenue and adjusted profits of $21 per share.

This is notably more optimistic than what Wall Street expects; current analyst consensus is for $198.4 billion in sales and adjusted earnings of $18.92 per share for the same period.

Optimism

The market’s reaction was a blend of excitement and caution. Oracle’s shares closed up 3 per cent after the optimistic cloud news, though broader revenue and margin forecasts tempered enthusiasm with a 2 per cent dip in after-hours trading.

Last month, Oracle made headlines after announcing infrastructure commitments in the hundreds of billions and a $500 billion AI project partnership with OpenAI. This collaboration will reportedly deliver five new data centers, fueling both hype and scrutiny.

Meanwhile, Oracle’s most recent quarterly results showed 28 per cent growth in cloud revenue, which now sits at $7.2 billion.

Investors, ever-watchful on profitability, pressed Oracle to clarify its margin expectations—especially with the high costs of delivering AI cloud infrastructure.

The company projects these margins to land in the 30-40 per cent range for AI-specific delivery, while traditional cloud services and software for enterprise customers should continue yielding healthy 65-80 per cent margins.

These figures, Oracle insisted, would hold steady even through extended, high-value contracts. In one example, a six-year, $60 billion AI cloud contract would see Oracle shouldering about $6.4 billion in costs each year, providing clarity on how margins would be managed over time.

All told, Oracle’s bullish stance paints a future where cloud—especially next-generation AI infrastructure—serves as the company’s dominant engine for growth, with blockbuster deals and a broadening customer base poised to drive revenue sharply higher by 2030.