DBT Bureau
Bengaluru, 12 June
Oracle is expecting double-digit growth in its revenue for fiscal year 2025, indicating robust demand for its AI-powered cloud services.
The forecast, which is above market expectations, cheered investors pushing up the share price higher.
“I expect that each successive quarter should grow faster than the previous quarter — as OCI (Oracle Cloud Infrastructure) capacity begins to catch up with demand,” CEO Safra Catz said after announcing its fourth-quarter results. “In Q4 alone, Oracle signed over 30 AI sales contracts totalling more than $12.5 billion, including one with OpenAI to train ChatGPT in Oracle Cloud,” he added.
Oracle, which follows the June-May financial year cycle, posted a total revenue of $14.29 billion in the fourth quarter ended May. The company said its revenue is likely to increase by 5%-7% in the first quarter of FY25.
The IT firm also announced a partnership with ChatGPT-maker OpenAI to offer its own cloud infrastructure to customers. It also said that the company recently signed an agreement with Google to integrate its cloud with Google Cloud and build 12 data centres inside the Google Cloud. “We expect the Oracle database to be available within the Google Cloud in September this year,” the company said.
The company signed sales contracts at record levels during the third and fourth quarters of the last fiscal year. “In Q3 & Q4, Oracle signed the largest sales contracts in our history- driven enormous demand for training AI large language models in the Oracle Cloud. These record-level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales & RPO even higher and result in double-digit revenue growth this fiscal year,” Oracle CEO, Cartz said.
Most technology giants are witnessing high growth in their AI offerings as this technology domain sees more demand from enterprises. On the back of such demand, chip maker- Nvidia’s market cap has touched $3 trillion.
