Oracle stock rises as company confirms Meta cloud deal
Oracle CEO Clay Magouyrk (center) speaks during a media tour at the Stargate data center on September 23, 2025 in Abilene, Texas. Stargate is a collaboration between OpenAI, Oracle and SoftBank, with promotional support from President Donald Trump, to build data centers and other infrastructure for artificial intelligence across the United States.
Kyle Grillot | Bloomberg | Getty Images
Seer Shares ended up 3% on Thursday on calls for more jobs in core categories and approval of a cloud computing deal with the social media company. Meta.
The database software maker forecasts AI-powered database and AI data platform revenue to be $20 billion in fiscal 2030, compared to $2.4 billion in fiscal 2025 and $3 billion in fiscal 2026.
“You see the change in these numbers, it’s a little bit 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 when we can find that supply, customers contract for it, we see strong demand, and then we start delivering it to customers.”
Oracle signed $65 billion in new cloud infrastructure commitments within 30 days this quarter, Magouyrk said.
“It was under seven different contracts from four different customers,” Magouyrk said. “None of these customers are OpenAI. I know some people sometimes question: ‘Hey, just OpenAI? The truth is, we think OpenAI is a great customer, but we have a lot of customers.”
Meta, which operates Facebook and Instagram, was one of the four customers, he said. Bloomberg In September, it was reported that the two companies were discussing a $20 billion deal.
The deal with Meta comes at a time when tech companies are spending heavily to invest in the infrastructure of artificial intelligence startups. In July, Meta said it expected to spend between $66 billion and $72 billion on capital expenditures this year.
In recent years, Oracle has expanded its cloud infrastructure division, which competes with its peers. Amazon And Google. Oracle also began offering its database in clouds other than its own.
Oracle received a commitment worth more than $300 billion from OpenAI in July.
Oracle said its AI infrastructure has an adjusted gross margin of 30% to 40% after land, data center, power and computing equipment costs. Earlier this month, Information Oracle reports seeing 14% gross margin on leasing Nvidia AI chips in August quarter.
“I’ve read a lot of stories speculating that Oracle is chasing revenue for revenue’s sake, but let’s be clear,” said Doug Kehring, the company’s chief financial officer. “We only pursue opportunities where we can clearly see attractive market margins that reward us in terms of intellectual property and the activities we deliver to customers.”
After the market close, Oracle said it is targeting $225 billion in revenue and $21 adjusted earnings per share for fiscal 2030, representing a compound annual growth rate of 31%. Analysts polled by LSEG expected $18.92 per share and revenue of $198.39 billion. The stock lost 2% of its value in extended trading.
WRISTWATCH: Oracle kicks off analyst day to outline deliveries and margin profile
