The cloud company plans an equal debt–equity split through fiscal 2030, excluding debt refinancing, and forecasts positive free cash flow in the second half of fiscal 2028.
Oracle has committed to raising no more than $20 billion in additional funding through fiscal 2030 for its superintelligence (SI) infrastructure expansion, excluding refinancing existing debt. The company also plans $90–95 billion in infrastructure spending in fiscal 2027 and proposes adding usage-based SI revenue alongside application subscriptions.
Chief financial officer Hilary Maxson outlined the funding commitment at Oracle’s investor day in Las Vegas on 28 October 2026. The ceiling is split evenly between borrowing and share sales. Oracle relies heavily on loss-making OpenAI, Reuters said in reporting carried by CNA. Their partnership added hundreds of billions of dollars to Oracle’s cloud backlog—contracted business still to be delivered—but building the infrastructure to serve those contracts has required heavy reliance on debt and stock sales.
Oracle’s fiscal-2027 spending plan is substantially larger than its spending in fiscal 2026, which ended in May. The figures cover data centers and cloud infrastructure.
| Fiscal year | Spending | Status |
|---|---|---|
| 2026 | $55.7 billion | Reported spending |
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
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| 2027 | $90–95 billion | Planned spending |
Chris Leone, Oracle’s executive vice president of application development, described an additional source of revenue at the investor day, The Register said. Oracle plans to add usage-based revenue on top of subscriptions as it embeds SI in its business software.
Leone said work performed by SI would consume units that generate revenue for Oracle. Under that proposed model, an existing customer could generate more revenue by having SI do more work, without buying subscriptions for additional users. Leone described the charging approach rather than announcing a customer price schedule.
Earlier in 2026, Oracle announced plans to raise $40 billion through debt and equity during fiscal 2027. It completed a $20 billion share sale in that fiscal year’s first quarter. The additional $20 billion ceiling is separate from that completed sale and currently comprises planned raises of $10 billion in equity and $10 billion in gross debt.
| Balance | Amount |
|---|---|
| Notes payable and other borrowings | $125.34 billion |
| Cash and cash equivalents | Around $36.37 billion |
Oracle expects supplier financing, customer-provided hardware and customer payments in advance to reduce its upfront cash needs until free cash flow turns positive.
Oracle expects capital spending on assets such as data centers to peak in fiscal 2027 and fiscal 2028, then decline in fiscal 2029. Maxson forecast positive free cash flow in the second half of fiscal 2028 and more than $30 billion in fiscal 2029.
Free cash flow is cash left after operating needs, working-capital changes and capital investment. Unlike accounting profit, it accounts for asset purchases and excludes non-cash items. Projected earnings therefore are not equivalent to cash available to finance construction.
| Measure | Fiscal 2027: reaffirmed | Fiscal 2030 |
|---|---|---|
| Revenue | At least $90 billion | At least $225 billion |
| Adjusted earnings per share | $8.10 | More than $21 |
Oracle also forecasts an adjusted operating margin—the share of revenue remaining as operating profit after its adjustments—above 40% in fiscal 2030. Its adjusted measures exclude expenses including stock-based compensation, acquisition-related costs and restructuring. Oracle says these measures do not replace results prepared under generally accepted accounting principles.
Analysis
During trading on 28 October, Oracle shares jumped more than 12% on the forecasts. CoreWeave, Nebius, Applied Digital and Iren gained between 2.1% and 5%. Oracle’s five-year credit-default swaps, contracts used to insure against a debt default, edged down to 287.2 basis points, or 2.872 percentage points.
Oracle identifies risks to its forecasts, including difficulty executing its cloud strategy, securing and managing data-center capacity, sourcing components such as graphics processors, and SI products failing to work as expected.
If it meets its forecasts, Oracle expects to fund growth without further outside capital from fiscal 2029. It also targets net debt below 3.5 times adjusted EBITDA—earnings before interest, tax, depreciation and amortisation—that year. Oracle’s net-debt calculation includes borrowings, supplier financing and lease liabilities, less cash and marketable securities. Its adjusted EBITDA calculation adds depreciation and operating lease expense back to its reported adjusted results.
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