Oracle's AI Cloud Infrastructure to Skyrocket in September: Expert Predicts Strong Earnings Report

Oracle is expected to release its fiscal 2026 first-quarter earnings report on September 9, with a high chance of exceeding analysts' expectations and raising guidance. The company's order book is overflowing, leading to stronger revenue growth in fiscal 2026 and beyond. Oracle's cloud infrastructure is experiencing rapid growth, driven by the demand for AI infrastructure, with total cloud revenue growth expected to increase to 40% and remaining performance obligations projected to jump by over 100%.

Oracle is poised to release its fiscal 2026 first-quarter earnings report on September 9, with expectations of exceeding analysts' forecasts and raising guidance. The company's robust order book and strong revenue growth trajectory in fiscal 2026 and beyond have investors optimistic. Oracle's cloud infrastructure is experiencing rapid growth, driven by the surging demand for AI infrastructure, with total cloud revenue expected to increase by 40% and remaining performance obligations projected to jump by over 100%.

Oracle's strategic investments in AI infrastructure and multi-cloud partnerships have positioned it as a key player in the AI-driven cloud revolution. The company's aggressive expansion of data centers and AI capabilities is supporting its growth trajectory. In Q1 2025, Oracle reported a 45% surge in IaaS revenue and secured $3 billion in new AI GPU contracts, highlighting its commitment to AI infrastructure.

Oracle's cloud consumption revenue grew by 53% year-over-year in Q1 2025, reflecting the scalability of its pay-as-you-go model for AI-driven applications. The company's Cloud Infrastructure (IaaS) is projected to grow by over 70% in fiscal 2026, outpacing the growth recorded in 2025. This acceleration is notable in a market dominated by AWS, Google Cloud, and Microsoft Azure, which collectively hold 63% of enterprise cloud infrastructure spending.

Oracle's strategic adoption of cloud infrastructure and AI capabilities is transforming the U.S. healthcare IT sector. Through its partnership with the U.S. Department of Veterans Affairs (VA), Oracle is modernizing federal EHR systems. The VA extended Oracle's EHR contract in 2025, citing improved interoperability and system reliability. Oracle's AI-powered EHR platform, built on Oracle Cloud Infrastructure (OCI), automates workflows and delivers real-time clinical insights. By 2026, Oracle plans to expand the platform's capabilities to include acute care functionality, further solidifying its role in the federal healthcare ecosystem.

Oracle's financial performance and valuation remain a point of interest. The company's trailing 12-month P/E ratio is 45.98X, significantly above the industry average of 37.75X. However, this premium is justified by its forward-looking guidance, which includes a fiscal 2026 revenue target of $67 billion (16% growth) and cloud infrastructure revenue exceeding $10 billion. Analysts project a 15% compound annual growth rate in Oracle's stock price over the next five years.

Risks remain, including Oracle's capital expenditures exceeding $21 billion and potential supply chain constraints delaying data center expansions. However, Oracle's stock has outperformed the sector, gaining 34.1% year-to-date compared to the Zacks Computer and Technology sector's 14.1% return.

In conclusion, Oracle's Q1 2026 earnings are expected to reflect strong revenue growth and cloud expansion. The company's strategic investments in AI infrastructure and multi-cloud partnerships position it as a pivotal player in the AI-driven cloud revolution. For investors, the question is not whether Oracle can compete in the AI era, but whether they can afford to ignore its accelerating momentum.

References:
[1] Oracle Announces Fiscal 2025 First Quarter Financial Results [https://investor.oracle.com/investor-news/news-details/2024/Oracle-Announces-Fiscal-2025-First-Quarter-Financial-Results/default.aspx]
[2] Oracle is transforming U.S. healthcare IT via cloud infrastructure and AI, modernizing federal EHR systems through its VA partnership. [https://www.ainvest.com/news/oracle-strategic-cloud-infrastructure-adoption-catalyst-long-term-shareholder-healthcare-modernization-2509/]
[3] How Oracle Is Winning the AI Compute Market [https://semianalysis.com/2025/06/30/how-oracle-is-winning-the-ai-compute-market/]
[4] Oracle Announces Fiscal 2025 Fourth Quarter and Fiscal Full Year Financial Results [https://investor.oracle.com/investor-news/news-details/2025/Oracle-Announces-Fiscal-2025-Fourth-Quarter-and-Fiscal-Full-Year-Financial-Results/default.aspx]
[5] Oracle Stock Before Q1 Earnings: Buy Now or Wait for ... [https://www.nasdaq.com/articles/oracle-stock-q1-earnings-buy-now-or-wait-results]