Oracle CEO Clay Magouyrk, center, speaks on a media tour of the Stargate data center in Abilene, Texas, on Sept. 23, 2025. Stargate is a collaboration of OpenAI, Oracle and SoftBank, with promotional support from President Donald Trump, to build data centers and other infrastructure for artificial intelligence throughout the US.
Kyle Grillot | Bloomberg | Getty Images
Oracle shares ended Thursday trading up 3% as it called for more business in core categories and confirmed a cloud-computing deal with social media company Meta.
The maker of database software sees $20 billion in artificial intelligence-powered database and AI data platform revenue in the 2030 fiscal year, up from $2.4 billion in fiscal 2025 and $3 billion in fiscal 2026.
“You see the change in these numbers that it’s a little bit easier for us to find supply, not this year or next year, but in subsequent years,” Clay Magouyrk, one of Oracle’s two new CEOs, told analysts Thursday at the company’s AI World conference in Las Vegas. “So as we’re able to find that supply, customers contract for it, we see immense demand, and then we go about delivering that to customers.”
Magouyrk said that in 30 days during the current quarter, Oracle contracted $65 billion in new cloud infrastructure commitments.
“It was across seven different contracts from four different customers,” Magouyrk said. “None of those customers are OpenAI. I know some people are questioning sometimes, ‘Hey, is it just OpenAI? The reality is, we think OpenAI is a great customer, but we have many customers.”
Meta, which operates Facebook and Instagram, is one of the four customers, he said. Bloomberg reported in September that the two companies were discussing a $20 billion deal.
The deal with Meta comes amid a flurry of spending by tech companies to invest in the infrastructure for their AI initiatives. Meta in July said that it expects to spend between $66 billion and $72 billion this year in capital expenditures.
In recent years, Oracle has expanded its cloud infrastructure division that competes with the likes of Amazon and Google. At the same time, Oracle has started offering its database in clouds other than its own.
Oracle secured a commitment from OpenAI in excess of $300 billion in July.
AI infrastructure has an adjusted gross margin of 30% to 40% after land, data center, power and computing equipment costs, Oracle said. Earlier this month, The Information reported that Oracle saw a 14% gross margin on renting out Nvidia AI chips in the August quarter.
“I’ve read a lot of stories that are speculating that Oracle is chasing revenue for revenue’s sake, but let’s be crystal clear,” said Doug Kehring, the company’s principal financial officer. “We only pursue opportunities where we have a clear line of sight to attractive market margins that reward us for intellectual property and the activity we bring to customers.”
After market close, Oracle said it’s now targeting $21 in adjusted earnings per share on $225 billion in revenue for fiscal 2030, representing a 31% compound annual growth rate. Analysts polled by LSEG were looking for $18.92 per share on $198.39 billion in revenue. The stock slipped 2% in extended trading.
WATCH: Oracle kicks off its analyst day to outline deliverables and margin profile
