Oracle announces record $30 billion cloud contract, expected to boost revenue in 2028

AUSTIN, TEXAS: Oracle Corp. said it has signed a single cloud deal worth $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 Monday, 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 service agreements,” she said, adding that revenue from Oracle’s namesake database that runs on others clouds continues to grow more than 100 percent.

The $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 $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 $9 billion, is split among four companies, including Oracle.

Oracle soars after raising annual forecast on robust cloud services demand

That award was a shift after an earlier contract worth $10 billion was awarded to Microsoft Corp. and was contested in court.

Oracle shares climbed as much as 8.6 percent Monday morning in New York, a record intraday high. They were up 26 percent through Friday’s close, reported Bloomberg.

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, said an analyst.