Oracle Corporation, a leading technology company, has reiterated its forecast of reaching $65 billion in revenue by the company’s fiscal year 2026. Speaking at a meeting with stock analysts in Las Vegas, Oracle’s Executive Vice President for Corporate Operations, Doug Kehring, stated that the company remains confident in meeting these targets.
Kehring also shared that Oracle has projected 8% revenue growth for fiscal 2024, excluding the company’s Cerner electronic health records business, or 7% including Cerner. He mentioned that the non-GAAP operating margin for FY 2024 is expected to reach 43%, up from 42% in fiscal 2023.
Oracle’s CEO, Safra Catz, addressed concerns regarding the recent selloff of the company’s shares following its earnings announcement. She saw the drop as an opportunity to repurchase stock and stated, “We continue to go private one share at a time.” Catz also mentioned that the demand for capacity in the company’s cloud computing business remains robust.
Oracle’s founder and Chief Technology Officer, Larry Ellison, expressed his confidence in reaching the company’s FY 2026 forecast. He highlighted the significant growth in the company’s customer base, mentioning that signing deals over a billion dollars has become a regular occurrence. Ellison also mentioned a $1.5 billion contract for AI training in the cloud with one of the three large cloud computing vendors, which was signed due to Oracle’s competitive pricing.
Ellison was also asked about the availability of GPU chips from Nvidia, which are essential for expanding the company’s cloud computing business. He revealed that there is a shortage of chips and added that he had recently met with Nvidia’s CEO and Tesla’s CEO to discuss the issue.
Amid a selloff in tech shares, Oracle’s stock fell 3.1% to $109.43.
In conclusion, Oracle remains confident in its ability to achieve its revenue target of $65 billion by fiscal year 2026. The company’s executives expressed optimism about the demand for their cloud computing services and their competitive position in the market. Despite challenges such as stock selloffs and chip shortages, Oracle is confident in its long-term growth prospects.