Oracle Stock Rises as Company Confirms Meta Cloud Deal

Oracle Shares ended Thursday up 3%, calling for more activity in core categories and confirming a cloud computing deal with a social media company Meta.

The database software maker forecasts $20 billion in revenue from artificial intelligence-driven databases and AI data platforms in fiscal 2030, up from $2.4 billion in fiscal 2025 and $3 billion in fiscal 2026.

“You see the change in those numbers, it’s a little easier for us to find supply, not this year or next year, but in subsequent years,” Clay Magouyrk, one of Oracle’s two new CEOs, told analysts Thursday at the company’s AI World conference in Las Vegas. “So as we’re able to find that supply, customers contract to get it, we see immense demand, and then we take care of delivering it to customers.”

Magouyrk said that in 30 days during the current quarter, Oracle made $65 billion in new cloud infrastructure commitments.

“It was seven different contracts from four different clients,” Magouyrk said. “None of these customers are OpenAI. I know some people sometimes wonder, ‘Hey, is it just OpenAI?’ The reality is we think OpenAI is a great customer, but we have a lot of customers.”

Meta, which operates Facebook and Instagram, is one of four clients, he said. Bloomberg reported in September that the two companies were discussing a $20 billion deal.

The deal with Meta comes amid a wave of spending by tech companies to invest in the infrastructure of their AI initiatives. Meta said in July that it planned to spend between $66 billion and $72 billion this year on capital expenditures.

In recent years, Oracle has expanded its cloud infrastructure division that competes with companies like Amazon And Google. At the same time, Oracle began offering its database in clouds other than its own.

Oracle secured a commitment from OpenAI of more than $300 billion in July.

AI infrastructure has an adjusted gross margin of 30% to 40% after land, data center, energy and IT equipment costs, Oracle said. Earlier this month, The Information reported that Oracle had a 14% gross margin on rental Nvidia AI chips in the August quarter.

“I’ve read many articles speculating that Oracle is chasing revenue for the sake of it, but let’s be very clear,” said Doug Kehring, the company’s chief financial officer. “We only pursue opportunities where we have a clear vision of attractive market margins that reward us for the intellectual property and business we bring to clients.”

After the market closed, Oracle said it was now targeting adjusted earnings per share of $21 on revenue of $225 billion for fiscal 2030, representing a compound annual growth rate of 31%. Analysts polled by LSEG expected $18.92 per share on revenue of $198.39 billion. The stock slipped 2% in extended trading.

WATCH: Oracle launches its analyst day to present deliverables and margin profile