Oracle shares jumped 4% to an all-time high after a recent SEC filing unveiled a cloud services agreement projected to contribute more than $30 billion in annual revenue starting in fiscal year 2028.
Oracle Corp. has announced a landmark cloud services agreement expected to generate $30 billion in annual revenue, a figure that exceeds the current size of its entire cloud infrastructure business, which totaled $10.3 billion over the past four quarters.
According to a regulatory filing on Monday, the revenue from the unnamed customer is projected to begin in fiscal year 2028. “Oracle is off to a strong start” in fiscal 2026, CEO Safra Catz stated in the filing, noting the company has signed “multiple large cloud services agreements” and that revenue from its cloud-based database offering continues to grow at over 100% annually.
The $30 billion deal ranks as one of the largest cloud contracts ever signed, and could significantly reshape Oracle’s position in the competitive cloud market. By comparison, Oracle was part of a $9 billion cloud services contract awarded by the U.S. Department of Defense in 2022 — a contract split among four companies including Microsoft, Amazon, and Google. That deal followed a contentious legal battle over a prior $10 billion award initially granted to Microsoft.
Following the announcement, Oracle shares surged as much as 8.6% on Monday, hitting a new intraday record high, and building on a 26% year-to-date gain through Friday’s close.
Oracle has made substantial strides in cloud infrastructure by catering to customers developing artificial intelligence applications. Earlier this year, it unveiled Stargate, a joint venture with OpenAI and SoftBank to provide massive cloud computing resources. Oracle had previously stated this AI-focused partnership was not yet reflected in its reported financials or backlog.
Bloomberg Intelligence analyst Anurag Rana wrote in a note that the latest agreement could significantly increase Oracle’s cloud market share and likely drive higher capital expenditures in the coming years.
CEO Safra Catz is expected to disclose details of the agreement at a company meeting on Monday. “Oracle is off to a strong start in FY26,” Catz is expected to say, according to the filing. “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 magnitude of these deals, the filing notes they will not impact Oracle’s fiscal 2026 guidance.
Shares of Oracle have surged more than 33% this year, fueled by momentum in cloud services and increased demand driven by artificial intelligence technologies. Earlier this month, Oracle wrapped up its strongest trading week since 2001 after posting robust earnings.
In recent months, the company has revealed several major AI-related initiatives, including the Stargate venture with OpenAI and SoftBank, which aims to pour billions into expanding AI infrastructure. Oracle also announced a new AI partnership with IBM and continues to expand internationally, including work on a new AI deployment in the United Arab Emirates.
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