March 10 (Reuters) - Oracle CEO Safra Catz on

Monday gave a strong growth outlook for its fiscal 2026 and

2027, indicating that the skyrocketing demand for advanced

artificial intelligence computing shows no signs of slowing

down.

The company expects fiscal 2026 revenue to grow 15% while

fiscal 2027 revenue is forecast to grow 20%, both surpassing

analysts' estimates, according to data compiled by LSEG.

Oracle, which is a latecomer to a cloud market dominated by

Microsoft ( MSFT ) and Amazon ( AMZN ), has been working to

boost the appeal of its cloud services by incorporating AI to

process large amounts of information.

To support these data-intensive AI services, the company has

been strategically expanding its infrastructure with investments

in both data centers and semiconductor technology.

"We are on schedule to double our data center capacity this

calendar year," Oracle Chairman Larry Ellison said. "Customer

demand is at record levels."

Oracle is part of an AI joint venture called Stargate, along

with ChatGPT maker OpenAI and Softbank, where they have

committed up to $500 billion towards developing AI capabilities

in the United States.

"Guidance for next fiscal year is impressive and reflects

Oracle's ability to grow its Oracle Cloud business," D.A.

Davidson analyst Gil Luria said.

Catz also said on the post-earnings conference call that the

company's capital expenditure for this fiscal year will more

than double to $16 billion and added that demand is

"dramatically" outstripping supply.

"There's still a big question out there, which is whether

cloud infrastructure providers are overspending and overbuilding

to support AI workloads that either won't materialize or won't

be cost effective without changes in the underlying AI and

models they run," said Rebecca Wettemann, CEO of industry

analyst firm Valoir.

Cloud revenue in the third quarter rose 23% to $6.2 billion.

The company reported revenue of $14.13 billion, missing the

analysts' average estimate of $14.39 billion.

On an adjusted basis, the company earned $1.47 per share,

compared with estimates of $1.49 per share.