Oracle Lands $30 bn Annual Cloud Contract

Oracle Corporation has announced a major cloud services contract expected to generate over $30 billion in annual revenue starting fiscal year 2028.

Disclosed in a regulatory filing, the deal is part of several large agreements secured since April 1, marking a strong start to Oracle’s 2026 fiscal year.

“This is a great start to FY26. 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,” said CEO Safra Catz.

Shares rose nearly 9% before closing up 4%.

Oracle’s total cloud infrastructure and license revenue was $24.6 billion in FY25, meaning this new contract could outpace its entire prior cloud business.

To meet demand, Oracle’s capital expenditures surged to over $21 billion in FY25, and executives have signaled more investment ahead.

While Oracle did not name the customer, industry observers point to OpenAI as the likely buyer.

The ChatGPT developer has partnered with Oracle on Project Stargate, a $500 billion initiative to build AI supercomputing data centers across the U.S.

The largest of these, located west of Dallas, is expected to house $40 billion worth of Nvidia chips.

The company forecasts over 70% growth in cloud infrastructure revenue this year, helping it toward its long-term target of $104 billion in annual sales by FY2029.