Oracle inks cloud deal worth US$30 billion a year

[AUSTIN] Oracle said it has signed a single cloud deal worth US$30 billion in annual revenue – more than the current size of its entire cloud infrastructure business.

That revenue is expected to start flowing in the fiscal year 2028, Oracle disclosed in a regulatory filing on Monday (Jun 30), without naming the customer.

“Oracle is off to a strong start” in its fiscal year 2026, chief executive officer Safra Catz said in the filing. The company has signed “multiple large cloud services agreements,” she said, adding that revenue from Oracle’s namesake database that runs on other clouds continues to grow more than 100 per cent.

The US$30-billion deal ranks among the largest cloud contracts on record. That revenue alone would represent nearly three times the size of Oracle’s current infrastructure business, which totalled US$10.3 billion over the past four quarters. A major cloud contract awarded in 2022 from the US Defense Department, that runs through 2028 and could be worth as much as US$9 billion, is split among four companies, including Oracle. That award was a shift after an earlier contract worth US$10 billion was awarded to Microsoft Corp. and was contested in court.

Oracle shares climbed as much as 8.6 per cent Monday morning in New York, a record intraday high. They were up 26 per cent this year through Friday’s close.

The database giant has gained traction in the competitive market for renting out computing power over the Internet, in part by targeting clients focused on artificial intelligence work. Earlier this year, Oracle announced a joint venture dubbed Stargate to provide OpenAI with massive sums of computing power. The company had previously said this deal wasn’t yet reflected in its financial statements or backlogged orders.

The deal announced Monday suggests Oracle will increase its cloud market share – and capital spending – in the coming years, Anurag Rana, an analyst at Bloomberg Intelligence, wrote in a note. BLOOMBERG