Massive agreement signals strong AI and cloud momentum
Oracle shares surged 4% to a new all-time high after a regulatory filing revealed a blockbuster cloud deal that could bring in more than $30 billion in annual revenue starting fiscal year 2028. The news, disclosed ahead of a company meeting, adds fresh momentum to Oracle’s already booming AI and cloud businesses.
According to the Securities and Exchange Commission filing, CEO Safra Catz is expected to confirm the multi-billion dollar agreement on Monday. “Oracle is off to a strong start in FY26,” Catz will reportedly say. “Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28.”
Despite the scale of the deal, Oracle said the agreements will not impact its 2026 financial guidance. The announcement builds on a stellar year for the tech giant, whose stock has already risen more than 33% in 2025—buoyed by its rapid expansion into AI infrastructure and enterprise cloud services.
AI partnerships and Multicloud growth drive optimism
Earlier this month, Oracle wrapped up its best trading week since 2001 after reporting robust earnings driven by demand for cloud-based database solutions and AI platforms. The company has been aggressively positioning itself as a key infrastructure partner for the AI boom.
Among its most high-profile initiatives is the Stargate project, a joint venture with OpenAI and SoftBank aimed at investing billions into AI data center expansion. Oracle also recently announced new international developments, including an AI deployment in the United Arab Emirates, and a strategic partnership with IBM to enhance AI service delivery across cloud environments.
Oracle’s MultiCloud approach, which enables customers to run its databases across different cloud providers, continues to fuel adoption among enterprise clients. The firm’s cloud database segment is reportedly growing at over 100% year-on-year, reflecting strong demand for interoperable, scalable data infrastructure.
Long-term impact still years away
While the $30 billion cloud deal won’t start contributing to revenue until FY28, investors appear willing to price in long-term gains now. Oracle’s aggressive investment in AI and cloud capacity is resonating in a market hungry for scalable computing solutions.
Still, analysts will be watching closely to see how Oracle manages execution across these massive deals and whether it can maintain its competitive edge as rivals like Microsoft, Amazon, and Google also double down on cloud-AI convergence.
