Oracle Expands AI Database Offerings Through AWS Cloud: What's Ahead?

Oracle Corporation ORCL is deepening its push into artificial intelligence-driven cloud infrastructure, expanding its database collaboration with Amazon (AMZN)-owned Amazon Web Services (“AWS”) in a move that strengthens its multicloud strategy.

Oracle recently announced the general availability of Oracle Exadata Database Service on Exascale Infrastructure through Oracle AI Database@AWS, bringing Exadata-class performance and pay-per-use economics to workloads of any scale. Oracle and AWS also signed an expanded, long-term strategic collaboration agreement aimed at accelerating customer migration to the joint offering, which is now live across 22 AWS regions spanning Asia-Pacific, Europe and the Americas, up from just two regions at its July 2025 launch. Enterprises including CJ Olive Young, Kobalt Music Group and the Metropolitan Transport Authority of Barcelona are already running business-critical operations on the platform, underscoring rising enterprise appetite for hybrid, AI-ready database infrastructure.

This latest expansion builds on a strong finish to fiscal 2026. In the fourth quarter, Oracle posted record total revenues of $19.2 billion, up 21% year over year, while total cloud revenues climbed 47% to $9.9 billion. Cloud Infrastructure (IaaS) revenues surged 93% to $5.8 billion, reflecting accelerating AI-driven demand, while Cloud Applications (SaaS) revenues rose 10% to $4.1 billion. Non-GAAP earnings per share came in at $2.11, up 24% year over year. Remaining Performance Obligations, a key indicator of contracted future business, ended the quarter at $638 billion, up 363% from the prior year, driven largely by large-scale AI infrastructure contracts.

For fiscal 2027, Oracle has guided to total revenues of $90 billion and non-GAAP EPS of $8.05. Against this backdrop, the broadened AWS partnership gives Oracle another channel to capture enterprise AI database workloads without requiring customers to abandon existing cloud environments, reinforcing the multicloud approach that has underpinned its recent growth momentum.

Peer Comparison: Microsoft and Alphabet

Oracle's AWS-linked database expansion places it alongside Microsoft MSFT and Alphabet GOOGL in the broader race to embed AI-ready infrastructure into cloud platforms. Microsoft has pursued a similar strategy through Azure, integrating AI services and database tools directly into its ecosystem while emphasizing enterprise migration support, much like Oracle's approach with AWS. Alphabet, through Google Cloud, has likewise expanded AI-integrated database and analytics offerings to attract enterprise workloads, positioning itself as a multicloud-friendly alternative. While Microsoft and Alphabet both operate first-party hyperscale clouds, Oracle's model of embedding its database technology within a rival's infrastructure differentiates its approach from the more self-contained strategies typically favored by Microsoft and Alphabet.

ORCL’s Price Performance, Valuation & Estimates

Shares of Oracle have lost 2.5% in the past six-month period, underperforming the Zacks Computer and Technology sector’s appreciation of 22.8%.

ORCL’s 6-Month Price Performance

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From a valuation standpoint, ORCL stock is currently trading at a trailing 12-month Price/Earnings ratio of 24.52x, which is higher than the sector average of 0.99x. The stock carries a Value Score of C.

ORCL’s Valuation

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The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03, which suggests 5.24% growth year over year.

ORCL stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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