Oracle Corporation is experiencing unprecedented growth in its cloud business, fueled by surging demand for artificial intelligence capabilities across its infrastructure and services.
In its fiscal 2025 fourth-quarter results announced on June 11, Oracle reported total revenue of $15.9 billion, up 11% year-over-year. Cloud revenue grew 27% to $6.7 billion, with Cloud Infrastructure revenue showing particularly strong performance, increasing 52% to $3.0 billion. The company's remaining performance obligations (RPO) - a key indicator of future revenue - jumped 41% to $138 billion.
"FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher," said Oracle CEO Safra Catz. The company projects total cloud growth to accelerate from 24% in fiscal 2025 to over 40% in fiscal 2026, with Cloud Infrastructure growth expected to exceed 70%.
A significant driver of this growth is Oracle's MultiCloud strategy, which allows customers to use Oracle's database services across major cloud providers. "MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO Larry Ellison. "We currently have 23 MultiCloud datacenters live with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26."
Oracle's aggressive expansion includes substantial capital investments, with fiscal 2025 expenditures exceeding $21 billion compared to less than $7 billion in fiscal 2024. This investment supports the company's rapidly growing cloud infrastructure and AI capabilities, positioning Oracle to compete more effectively against cloud giants like Microsoft, Amazon, and Google.
The company's strategy of offering integrated database services across multiple cloud platforms is resonating with enterprises looking to leverage AI while maintaining flexibility in their cloud deployments. With its strong financial performance and ambitious growth targets, Oracle is cementing its position as a major player in the AI-driven cloud computing landscape.