Oracle has pushed back against fears that AI will erode demand for its packaged business software, arguing instead that AI agents make its applications easier to implement and more valuable, while also feeding growth in its cloud infrastructure business. Co-CEO Mike Sicilia, making his first comments on applications since taking the role, said AI lets employees oversee automated agents rather than manually following rigid system workflows, and announced an "agentic AI accelerator" due in October that Oracle claims will shrink SaaS deployment times from years to months.

The remarks came on Oracle's Q1 FY2027 earnings call, where software revenue slipped three percent to $5.5 billion even as SaaS sales grew ten percent; cloud infrastructure revenue, by contrast, jumped 60 percent year-on-year to $11.6 billion. Co-CEO Clay Magouyrk also addressed investor concerns about Oracle's heavy datacentre spending, noting GPUs coming up for renewal fetched a 20 percent premium and that 850 MW of new datacentre capacity came online in the quarter, with full-year earnings guidance raised to $8.10 per share on revenue of at least $90 billion.