Oracle is predicting a strong long-term growth outlook, driven by soaring demand for AI cloud services. The company expects its fiscal 2026 revenue to grow 15% and fiscal 2027 revenue to grow 20%, surpassing analysts' estimates.
This growth is fueled by Oracle's strategic expansion into AI cloud services, which involve processing large amounts of information using artificial intelligence. To support this growth, Oracle is investing heavily in data centers and semiconductor technology, with plans to double its data center capacity this year.
Oracle's chairman, Larry Ellison, noted that customer demand is at record levels, and the company is committed to meeting this demand. Oracle is also part of an AI joint venture called Stargate, along with ChatGPT maker OpenAI and Softbank, which aims to develop AI capabilities in the United States.
The company's capital expenditure for this fiscal year is expected to more than double to $16 billion, with demand for AI cloud services "dramatically" outstripping supply.
