Oracle Secures Major Cloud Deal Expected to Generate $30 Billion in Annual Revenue by Fiscal 2028
Oracle has announced a monumental cloud partnership that is projected to increase its annual revenue significantly, potentially by 150% compared to fiscal 2025 figures. The details were disclosed in an 8-K filing, which reveals that the deal is anticipated to contribute over $30 billion in annual revenue starting in FY28. This agreement is part of several substantial cloud services contracts Oracle has secured in its fiscal Q1 2026. While Oracle did not disclose the identities of its clients involved in these agreements, the anticipated revenue is noteworthy, especially considering the company’s full-year revenue was $57.4 billion for fiscal 2025. To put this in perspective, the $30 billion revenue is nearly on par with Google Cloud’s total revenue for 2023 and constitutes a significant portion of the global cloud infrastructure services market, which reached $330 billion in 2024.
The Mystery Surrounding Oracle’s Partner
The identity of the customer linked to Oracle’s $30 billion deal remains undisclosed, leading to widespread speculation. Some industry experts suggest that it could be Oracle’s current partner, Microsoft, which is working to fulfill a massive $315 billion pipeline of performance obligations. Others speculate that OpenAI might be a candidate, especially as it navigates challenges with Microsoft. Daryl Schoolar, Director and Analyst at Recon Analytics, mentioned that there were earlier reports indicating Oracle’s interest in acquiring 5GW of U.S. data center capacity to support OpenAI’s training workloads. However, he also pointed to G42, a UAE-based AI tech holding company, as another likely candidate. G42 is actively involved in the StarGate UAE project and has announced plans to establish an AI campus in Abu Dhabi with 5GW of data center capacity, in cooperation with U.S. hyperscalers, alongside its work with Oracle on healthcare-focused AI solutions.
Oracle’s Market Position and Future Prospects
As of the end of 2024, Oracle claimed approximately 3% of the cloud infrastructure services market, positioning it fourth behind Amazon (30%), Microsoft (21%), Google (12%), and Alibaba (4%). Analysts are curious whether this substantial deal could disrupt current market standings. Matt Kimball, VP and Principal Analyst at Moor Insights & Strategy, believes this agreement could positively impact Oracle’s revenue and its competitive stance against peers like Azure, AWS, and Google Cloud. He noted that Oracle Cloud Infrastructure (OCI) is increasingly attracting major data-driven organizations, establishing itself as a primary choice rather than merely an alternative. While some analysts have raised doubts about Oracle’s capacity to manage growth and infrastructure alongside its other business ventures, Kimball remains confident, citing Oracle’s long-standing experience in infrastructure. Schoolar added that a high-profile win like this could enhance Oracle’s appeal to AI developers seeking cloud solutions.
John Dinsdale, Chief Analyst at Synergy Research Group, offered a more cautious perspective on the $30 billion figure, suggesting that a level of skepticism is warranted due to the absence of specific details. He highlighted a trend where companies announce impressive figures with minimal supporting information, describing it as a potential marketing tactic. Nonetheless, if the $30 billion figure is accurate, Dinsdale noted it could represent 3-4% of the global market for cloud infrastructure services by 2028, which would likely influence Oracle’s market share. He acknowledged Oracle’s proactive approach to cloud and AI opportunities, which has positively altered its trajectory. Dinsdale remarked on Oracle’s growth rate and cloud revenue expansion reaching their highest levels in two years, although its capital expenditure remains lower than that of Amazon, Microsoft, and Google. However, he indicated that Oracle is now positioned to distinguish itself from other second-tier cloud providers.
