AI Infrastructure Demand, Data Gravity Drive Momentum - Oracle F4Q26 Earnings Preview

Research evidence excerpt

AI Infrastructure Demand, Data Gravity Drive Momentum - Oracle F4Q26 Earnings Preview

June 4, 2026

Partner/Industry Checks Takeaways

●Checks came in above plan for the quarter. Checks characterized the

quarter as above plan, with international strength, early renewals and

an uptick in OCI consumption contributing to the beat. Looking to F27,

partners maintained mid-teens growth targets, consistent with internal

objectives by one check to double their Oracle business by 2030.

Government, defense and health were cited as the standout verticals

heading into the new fiscal year, with health in particular benefitting

from a large pipeline of legacy Oracle/Cerner Millennium customers

forward-planning ahead of Oracle's next-generation clinical release in

F27, a product cycle that checks described as generating significant

ground-level demand across customer planning conversations globally.

●On-prem to cloud migration represents a large structural growth

opportunity for Oracle. One partner noted ~80-82% of Oracle's global

tech install base remains on-premise, a figure the partner expects to

fall below 75% within a year and below 50% by 2030. The migration

motion is increasingly enabled by Oracle's interconnect architecture,

which allows enterprises to unlock stranded on-premises data, bring

AI capabilities to that data regardless of where it sits, and leverage

existing CSP commercial relationships. The business of moving Oracle

software onto third-party hyperscaler infrastructure is growing at

60-70%, roughly triple the typical hyperscaler migration rate, with

interconnect between clouds cited as the fastest-growing component

of Oracle's partner business. We view the on-premises installed base

as a durable multi-year revenue tailwind that is still in the early stages