By Shubhangi Chowdhury
Tech giant Oracle has landed a massive cloud deal that’s expected to bring in $30 billion a year. The revenue from this deal will start showing up in its books from fiscal year 2028.
The client hasn’t been named in Oracle’s regulatory filing on Monday, but Bloomberg says this is one of the “largest” cloud deals on record. This fresh revenue would represent nearly three times the size of Oracle’s current infrastructure business.
“Oracle is off to a strong start” in its fiscal year 2026, Chief Executive Officer Safra Catz said in 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,” she added.
Oracle’s stock is currently trading at around $218.63, which means it’s up approximately $8.43, or about +4.0%, from the previous close. That jump comes after the cloud deal broke.
READ: Oracle struggles to define its AI strategy as latest earnings slump (March 11, 2025)
The tech giant has been on a spree in making big moves such as joining the Stargate with OpenAI, SoftBank, and MGX to build massive AI data-center infrastructure across the U.S. This venture kicked off in January with a $100 billion initial commitment (with up to $500 billion planned over four years), including a $1.1 billion facility under construction in Abilene, Texas.
Back in 2022, the U.S. Defense Department awarded a huge cloud computing contract that could be worth up to $9 billion by the time it ends in 2028. But instead of giving the deal to just one company, the government decided to split it among four major tech companies—and Oracle is one of them.
This contract is part of a larger effort by the U.S. military to modernize its technology and move important operations to the cloud, where data can be stored and accessed securely from anywhere. Alongside Oracle, big names like Amazon, Microsoft, and Google are also handling parts of the project.
Oracle has reportedly announced its strong performance in FY 2025 results where the company is earning a significant amount from its cloud services. In its latest quarter (ended May 31, 2025), Oracle posted $15.9 billion in total revenue, an 11% increase year-over-year. Its cloud revenue hit $6.7 billion, growing 27%, with cloud infrastructure (IaaS) alone surging 52% to $3 billion.
READ: AMD signs deal with Oracle to build a cluster of 30,000 AI accelerators (April 1, 2025)
The tech company has a huge business lined up, “remaining performance obligations” which jumped 41% to a record $138 billion. “FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher,” said Catz.
“Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world’s largest cloud application company—but also one of the world’s largest cloud infrastructure companies,” Catz’s optimistic statement in the press released shared on their site in June.
Oracle has a diverse range of clients from AT&T, Lyft, Cognizant to OpenAI, Microsoft’s Bing AI, and supports Nvidia and xAI in their model-training efforts. Founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates. It’s now based in Austin, Texas. Though it used to be headquartered in Redwood Shores, California. Today, the company supports hundreds of thousands of customers in more than 175 countries.