Bernstein: Oracle OCI Revenue Surpasses Alibaba Cloud, AI Data Centers Drive FY27 Growth

Bernstein reported that Oracle Cloud Infrastructure (OCI) Gen 2 revenue reached $18.1 billion in FY26, a 77% year-over-year increase, surpassing Alibaba Cloud. OCI now trails only AWS, Azure, and Google Cloud. Bernstein maintains an outperform rating with a $325 price target. Capital expenditure is projected to rise to $92.8 billion in FY27, with AI data centers accounting for 36% of OCI revenue. The firm argues that concerns over OCI's profitability are overstated, as core business segments generate sufficient cash flow to support AI infrastructure investm