Oracle expects cloud sales of $166 billion by 2030 as business expands

Core Insights - Oracle expects cloud infrastructure revenue to reach $166 billion by fiscal 2030, constituting nearly 75% of total sales [1] - The company anticipates overall revenue of $225 billion and adjusted profits of $21 per share for fiscal 2030, surpassing analyst expectations of $198.4 billion and $18.92 per share [2] - Oracle reported a 28% increase in cloud revenue to $7.2 billion for the most recent quarter [3] Revenue and Profit Forecasts - The company projects $225 billion in total revenue and adjusted profits of $21 per share by fiscal 2030 [2] - Analysts had previously estimated $198.4 billion in overall sales and adjusted profits of $18.92 per share for the same period [2] Cloud Infrastructure Growth - Oracle's cloud infrastructure bookings reached $65 billion in a single 30-day period, including a $20 billion deal with Meta Platforms [4] - The company has secured hundreds of billions in infrastructure bookings and is collaborating with OpenAI on a $500 billion project involving five new data centers [3] Customer Base and Market Perception - Oracle emphasizes that its customer base extends beyond OpenAI, with multiple deals from various clients [5] - The company aims to alleviate investor concerns regarding gross margins, which were reported at 68.7% in the most recent quarter [5] Margin Expectations - Oracle expects adjusted gross margins of 30% to 40% for AI cloud computing infrastructure, while conventional cloud software and infrastructure will have margins between 65% and 80% [6] - The company projects that these margins will remain stable throughout the duration of contracts [7]