Oracle shares rose 12% in trading on October 28, 2026, after the company forecast $225 billion in fiscal 2030 revenue and outlined plans to raise up to $20 billion in additional financing through that year.

Key Takeaways

  • The fiscal 2030 revenue forecast implies average annual growth of 35%.
  • Oracle plans to split the additional financing equally between equity and debt.
  • The company expects free cash flow to turn positive in the second half of fiscal 2028.

Oracle shares climb as forecasts are unveiled

Oracle presented the forecasts at its October 28 investor day at Oracle AI World. Before Wednesday, the shares had lost about one-third of their value in 2026 amid concerns about interest rates, debt and the cost of the company’s artificial intelligence infrastructure buildout.

The revenue forecast is close to the $224.2 billion that analysts polled by LSEG projected for fiscal 2030. Oracle also said it expects its operating margin to exceed 40% that year.

Financing the infrastructure buildout

For fiscal 2027 through 2030, Oracle said it would limit additional fundraising to $20 billion, divided equally between equity and debt. The company expects vendor financing, customer-provided hardware and customer prepayments to reduce upfront cash requirements as it moves toward positive free cash flow.

Oracle has issued $117 billion in long-term debt and holds a BBB- rating from S&P, the lowest investment-grade level. The spread on its five-year credit default swaps stood at 277 basis points, down from about 320 basis points earlier in October but nearly double its level at the start of the year.

Spending and cash flow outlook

Capital expenditures more than doubled to $55.7 billion in fiscal 2026. FactSet estimates spending will reach $91.9 billion in fiscal 2027 as Oracle expands its AI infrastructure.

Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029. Analysts, meanwhile, expect negative free cash flow of $35 billion in fiscal 2027 and a similar amount in fiscal 2028.

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