Oracle Shares Jump 12% as Revenue Outlook Lifts Debt Worries
WHO:
Reuters - Oracle said it would limit new financing.
CNBC - Oracle announced its revenue forecast, financing plan, free-cash-flow outlook, and operating-margin target.
CNBC - Oracle has issued $117 billion in long-term debt and holds an investment-grade credit rating of BBB-, the lowest level of investment grade above junk, according to S&P.
CNBC - Oracle is providing capacity to OpenAI and competing with hyperscalers including Google and Amazon.
CNBC - Michelle Fox and Jordan Novet contributed to the report.
WHAT:
Yahoo Finance - Oracle shares closed at about $144, up about 11%, adding more than $40 billion in market value; the stock remains down about 25% for the year.
Yahoo Finance - Oracle said it burned through about $24 billion in free cash flow in the fiscal year that ended in May.
Yahoo Finance - Oracle reaffirmed its outlook for the current fiscal year, including at least $90 billion in revenue.
Yahoo Finance - After Oracle’s financial targets were released, Vertiv rose about 16%; SK Hynix and Sandisk gained 8% to 13%, Micron gained about 6%, CoreWeave and Nebius each rose about 7%, and Bloom Energy and Quanta Services gained around 5%. Nvidia and Meta fell about 1%, while Microsoft ended flat.
Reuters - Oracle pledged to limit new financing to $20 billion through fiscal 2030.
CNBC - Oracle forecast $225 billion in revenue for fiscal 2030, implying 35% average annual growth. LSEG-polled analysts project $224.2 billion.
CNBC - Oracle said financing raised for fiscal 2027 through fiscal 2030 would be divided equally between equity and debt.
CNBC - Oracle said: “Vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements through the transition to positive free cash flow.”
CNBC - Oracle expects its fiscal 2030 operating margin to exceed 40%.
Reuters and CNBC - Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029.
CNBC - Oracle shares rose 11%; the headline described a 12% jump.
CNBC - Oracle’s capital expenditures more than doubled to $55.7 billion in fiscal 2026 and are expected to rise 65% to $91.9 billion in fiscal 2027, according to FactSet.
CNBC - Analysts expect negative free cash flow of $35 billion in fiscal 2027 and a similar amount in fiscal 2028, according to FactSet.
CNBC - Oracle’s five-year credit-default-swap spread was 277 basis points, after reaching about 320 basis points earlier in the month; it was up almost 100% for the year.
CNBC - Analysts polled by LSEG expect revenue growth of 8% in fiscal 2027, followed by significant acceleration over the next two years.
WHERE:
CNBC - Oracle discussed its outlook at an investor day.
WHY:
Yahoo Finance - Fidelity’s director of global macro, Jurrien Timmer, wrote on X: “The bond market is regulating as it always does,” and said “a more disciplined allocation of capital today will prevent a bursting bubble tomorrow.”
CNBC - Oracle’s financing limits and outlook addressed concerns about its debt burden and the cost of its AI infrastructure buildout.
CNBC - Oracle is expanding cloud capacity and AI infrastructure to compete with hyperscalers and provide capacity to OpenAI.
HOW:
Reuters - Oracle said capital spending would peak in the current and following fiscal years as it builds cloud capacity.
CNBC - Oracle’s financing plan relies on equal amounts of equity and debt, with vendor financing, customer-provided hardware, and customer prepayments expected to reduce upfront cash needs.
(UPDATED October 29, 2026 01:15 UTC)
Oracle shares jumped 11% after the company capped new financing at $20 billion through fiscal 2030 and laid out plans to fund its AI infrastructure expansion with equal amounts of equity and debt. At an investor day, Oracle reaffirmed its forecast for at least $90 billion in revenue this fiscal year, projected $225 billion in fiscal 2030 revenue and an operating margin above 40%, and expects free cash flow to turn positive in the second half of fiscal 2028. The company, which burned about $24 billion in free cash flow last fiscal year and has $117 billion in long-term debt, said vendor financing, customer-provided hardware and prepayments would help curb upfront costs as it builds cloud capacity for OpenAI and competes with Google and Amazon.
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(UPDATED October 28, 2026 22:05 UTC)
Oracle says it will cap new financing at $20 billion through fiscal 2030, addressing concerns about the debt needed to expand its AI and cloud infrastructure for customers including OpenAI. At an investor day, the company forecast $225 billion in fiscal 2030 revenue and an operating margin above 40%, while expecting free cash flow to turn positive in the second half of fiscal 2028 and top $30 billion in fiscal 2029. Oracle said financing from fiscal 2027 through fiscal 2030 would be split evenly between equity and debt, with vendor support and customer contributions helping reduce upfront costs, and its shares rose 11%.