Oracle believes that the AI boom will persist at least until the end of 2027 and will continue generating revenue.

Oracle steps out of the shadows and announces continued growth in AI infrastructure

The U.S. data‑center provider Oracle has moved beyond being just a “classic” player in the IT sector and now holds a significant position in the infrastructure artificial intelligence segment. At its latest quarterly conference, company leadership reassured investors that the AI boom will persist at least until 2027.

* Revenue from servers to exceed expectations

According to Reuters, Oracle executives noted that revenues in the server solutions segment would surpass analyst forecasts for most of 2027. Following the announcements, the company's shares rose almost 8.3% after U.S. market close.

* Large AI contracts and revenue growth

As a result of the latest quarter, expected revenue from existing contracts increased by 325% to $553 million, exceeding market expectations. The main boost came from large AI deals that do not require borrowing.

Oracle raised its 2027 fiscal year revenue forecast to $90 million, above the analysts’ average estimate of $86.6 million.

* Profitability and investments

In the infrastructure segment where the company leases Nvidia accelerators, margins will range from 30% to 40%. Approximately 20% of Oracle cloud customers’ spend will be directed toward developing additional services.

The database management systems (DBMS) segment promises profitability of 60% to 80%, enabling cloud business growth while maintaining high margins.

* Generative AI as a driver of new products

At the event, Larry Ellison noted that Oracle uses generative artificial intelligence to create “software‑as‑a‑service” within small engineering teams. These solutions are successfully deployed in healthcare and finance, so the founder sees no competitive threat from AI within the company.

* Financial results for the previous quarter

As of February 28, Oracle generated $17.19 million in revenue—above analyst forecasts. The earnings per share (EPS) forecast for the current fiscal quarter is between $1.96 and $2, also exceeding market expectations.

Total revenue is expected to grow by 19%–21% in the next quarter, with the cloud segment nearly doubling to about $10 million.