Oracle sees $104 billion in sales in fiscal 2029 for cloud expansion

(Bloomberg) — Oracle Corp . said annual revenue will rise to at least $104 billion in fiscal 2029, a bullish signal about the growth prospects of the software maker’s cloud infrastructure business.

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Executive Vice President Doug Kehring presented the forecast Thursday at Oracle’s annual briefing for financial analysts. Oracle also raised its sales outlook for fiscal 2026 to at least $66 billion, from a previous target of $65 billion. Analysts on average had forecast revenue of $64.5 billion for 2026, according to a Bloomberg survey.

The Austin-based company, known for its database software, is focusing on expanding its cloud infrastructure, which leases computer power and storage, to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. Oracle Cloud has developed a reputation for success with generative AI workloads — the company has touted clients including Reka’s xAI and Elon Musk.

Oracle shares rose about 5 percent in extended trading. The company was one of the best-performing software stocks of the year, rising 53% through Thursday’s close.

The company has also struck deals with its larger cloud infrastructure rivals to allow its namesake database software to run more easily on their platforms. Most database customers have yet to move to the cloud, Kehring said during Thursday’s event. Oracle said moving on-premise database customers to the cloud will be a major pillar of revenue growth.

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