Infrastructure Software Consumption Junction

Consumption-based revenue growth across hyperscalers and infrastructure software vendors accelerated to 41% y/y in 1Q26, up from 35% in 4Q25. This strength is driven by robust enterprise demand for platform usage and AI integration.

Key Takeaways

• 1.Total consumption revenue for the peer group grew 41% y/y in 1Q26, accelerating from +35% in 4Q25.
• 2.Hyperscaler consumption revenue (Amazon, Google, Microsoft, Oracle) grew 41.4% y/y in 1Q26, signaling strong and increasing AI enterprise interest.
• 3.Net-new consumption revenue growth reached 155.6% y/y in 1Q26, indicating a strengthening demand environment.

Table of Contents

• Industry Overview
• Consumption revenue accelerated (again) in 1Q26
• Hyperscalers consumption growth robust in 1Q at 41% y/y
• Accelerating rev growth key to better infra soft sentiment
• Self-managed revenue growth a tad slower, which is ok
• Strong and accelerating results from consumption models in 1Q26
• Total consumption growth accelerated to 41% in 1Q26, up from +35% in 4Q25
• BofA forecasts total consumption growth to accelerate to 44% y/y in 2026, up from 30% in 2025
• Fastest 2026 growth in the group: Oracle at 102% y/y to $26bn
• 1Q26 consumption growth accelerated 6 points q/q to 41% from 35% in 4Q25
• DAR growth is accelerating too
• Net-new revenue growth is accelerating
• Quarterly net-new growth analysis reveals broad-based strength
• Seven of ten consumption-based beat magnitudes expanded in 1Q26
• Self-managed segments remaining important
• Price objective basis & risk
• Analyst Certification
• US - Internet Coverage Cluster
• US - Networking and Software Coverage Cluster
• Important Disclosures

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