Oracle Jumps 12% on $225 Billion 2030 Revenue Target as It Caps New Funding at $20 Billion
Updated
Updated · CNBC · Oct 28
Oracle Jumps 12% on $225 Billion 2030 Revenue Target as It Caps New Funding at $20 Billion
1 articles · Updated · CNBC · Oct 28
Summary
Oracle shares rose 12% after the company told investors it expects fiscal 2030 revenue of $225 billion, roughly in line with analysts' $224.2 billion estimate but implying about 35% average annual growth.
A $20 billion fundraising cap for fiscal 2027-2030 helped ease debt worries, with Oracle saying the total would be split evenly between equity and debt and supplemented by vendor financing, customer hardware and prepayments.
The financing plan matters because Oracle has piled up $117 billion in long-term debt, holds a BBB- credit rating and had lost about one-third of its market value this year as investors questioned the cost of its AI expansion.
Capital spending has surged from $55.7 billion in fiscal 2026 and is expected to climb 65% to $91.9 billion this year, leaving Oracle reliant on rapid revenue growth to absorb those costs.
Oracle said free cash flow should turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029, versus analyst expectations for roughly $35 billion of negative free cash flow in each of the next two years.