Oracle Raises 2026 Guidance on AI Cloud as Booked Revenue Set to Top $500 Billion
Heavy capex has turned free cash flow negative during an aggressive data‑center buildout.
Overview
- Oracle signaled faster growth by guiding to at least 16% revenue expansion for fiscal 2026, driven by cloud growth projected above 40%.
- The company said it expects booked revenue to exceed $0.5 trillion, underscoring robust forward demand for Oracle Cloud Infrastructure.
- Analysts highlight surging AI inferencing needs and scarce compute capacity as key drivers of Oracle’s recent acceleration.
- Melius raised its Oracle price target to $370 with a Buy rating, citing strengthening revenue trends tied to inferencing workloads.
- Analyst commentary points to knock‑on benefits for infrastructure and AI suppliers including Nvidia, Broadcom, AMD, Arista Networks, Microsoft, Google and CoreWeave.