Oracle Corp. executives provided updates on the company’s artificial intelligence strategy and cloud growth during the 20th Annual Deutsche Bank Technology Conference in Southern California on Wednesday.
Mike Sicilia, CEO of Oracle, and Clay Magouyrk, co-CEO, highlighted the company’s focus on applied AI, integrating large language models with enterprise data, industry-specific rules, and core business processes. The approach prioritizes practical applications over standalone experimentation, they said. Oracle also supports multiple pricing models for AI services, including token-based, usage-based, and outcome-based pricing.
Sicilia reported that Oracle’s multi-cloud database revenue grew more than 400% in the fourth quarter, driven by increased adoption of its database services on Amazon Web Services, where Oracle now operates 22 live regions. Approximately half of Oracle’s applications and infrastructure customer base has migrated to the cloud, with about 14,000 live Fusion customers. The company’s revenue reached $67.4 billion over the last twelve months, with a gross profit margin of nearly 66%. Oracle’s market capitalization stands at $424.5 billion.
Looking ahead, Oracle forecasted fiscal 2027 revenue growth of 34%, with expected earnings per share of $8.33. The stock has declined 25% year-to-date, trading at a price-to-earnings ratio of 25.3 and a PEG ratio of 0.72. The next earnings report is scheduled in 19 days.
Magouyrk emphasized Oracle’s model-agnostic AI strategy, allowing customers to deploy OpenAI or open-source models while using Oracle’s database as the orchestration layer. The company also introduced database-layer AI capabilities, including vector search that automatically vectorizes mission-critical data, patient-level encryption keys, and blockchain table support for immutability. Additionally, Oracle reduced the implementation timeline for a Veterans Affairs electronic health records project from 18 months to 8 months.
The executives noted that Oracle’s sales force has been reorganized by industry to improve engagement with both IT and business executives. While enterprise and government segments are accelerating, the small-to-midsize business market, including NetSuite, has seen a moderation in sales cycles.
