Oracle founder and CTO Larry Ellison declared that the company will construct “more cloud infrastructure data centers than all its infrastructure competitors combined,” during Oracle’s latest earnings call. The bold claim followed a strong Q4 performance for fiscal year 2025, with Oracle also reporting full-year results.
Q4 revenue reached $15.9 billion, marking an 11% year-over-year increase. Cloud revenue — encompassing both IaaS and SaaS — came in at $6.7 billion, a 27% rise. The standout segment was IaaS, which surged 52% year-over-year to $3 billion.
For the full fiscal year, Oracle generated $57.4 billion in revenue. Of that, $10.2 billion came from cloud infrastructure, representing 51% growth.
CEO Safra Catz emphasized even stronger growth ahead in a pre-earnings statement.
“FY25 was a very good year – but we believe FY26 will be even better as our revenue growth rates will be dramatically higher,” said Oracle CEO, Safra Catz. “We expect our total cloud growth rate – applications plus infrastructure – will increase from 24 percent in FY25 to over 40 percent in FY26. Cloud Infrastructure growth rate is expected to increase from 50 percent in FY25 to over 70 percent in FY26. And RPO is likely to grow more than 100 percent in FY26.”
She clarified that these forecasts do not rely on the company’s Stargate initiative, which she said is “still in formation.”
“There are a lot of partnerships we are in the middle of right now that are all part of this enormous growth rate. We are the destination for everyone who wants AI workloads who want database workloads and want applications. All of that together comes in our RPO. We have so much in pipeline right now that — and of course, we have so much in RPO, meaning those are noncancelable contracts, and we are still in a position where our supply is not meeting our demand.”
Catz also noted: “As Stargate forms, that will contribute into all of this,” adding that some business with OpenAI is separate from Stargate.
Recent reports indicated Oracle is seeking up to 5 gigawatts of data center capacity to support OpenAI’s AI workloads — a pursuit seemingly distinct from the Stargate project, which began earlier this year but has yet to be formalized.
During the call, Ellison highlighted one of Oracle’s latest major wins.
“We got a gigantic contract from Temu that would have been unprecedented, except for all the other gigantic contracts we’ve also been getting. But Temu is a very large company that’s growing extremely rapidly, and they are basically moving their infrastructure to the Oracle Cloud. That was a very big contract,” Ellison told investors.
Ellison also pointed to the growing success of Oracle’s multicloud services.
“MultiCloud database revenue from Amazon, Google, and Azure grew 115 percent from Q3 to Q4,” he said in a pre-call statement. “We currently have 23 MultiCloud data centers live with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26. Revenue from Oracle Cloud@Customer data centers grew 104 percent year-over-year. We have 29 Oracle Cloud@Customer dedicated data centers live with another 30 being built in FY26.”
On capital expenditures, Oracle spent $21.2 billion in FY25, with $9.1 billion occurring in Q4 alone. Catz attributed the higher capex to hardware investments.
“We have building partners who charge us rent once they finished constructing things. And when we all of a sudden have higher capex, it means we are filling out data centers, and we are buying components to build our computers, which are different than other people’s, and we are putting them on the floor. We had an opportunity to buy up and for deployment, and so we did. We are putting out as much capacity as we possibly can as quickly as we can,” she explained.
Oracle anticipates FY26 capex to reach $25 billion, though Catz cautioned that the estimate might be “understated.”
While competitors like Microsoft, Amazon, Google, and Meta are also ramping up their infrastructure spending — with capex ranging from $60 billion to $100 billion — Ellison made clear Oracle’s ambitions go beyond spending.
“Oracle will build more cloud infrastructure data centers than all of our infrastructure competitors combined. All of our OCI data centers from the smallest low-cost data center to the largest gigawatt AI training data center include all Oracle OCI capabilities,” he said.
This isn’t the first time Ellison has made a sweeping infrastructure promise — in 2023, he said Oracle would build 100 data centers that year. Whether the new target is realistic remains to be seen.
Beyond infrastructure, Oracle reported operating cash flow of $20.8 billion for FY25, up 12%. GAAP operating income hit $17.7 billion, while non-GAAP operating income reached $25 billion.
Investors responded positively, with Oracle’s shares rising more than 24% on the day.
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