Oracle initiates 20 billion USD capital raise through debt and equity
Oracle has announced plans to raise 20 billion USD via a combination of debt sales and new share issuances, effectively utilizing its entire planned financing capacity through fiscal year 2030.
Oracle confirmed plans to secure 20 billion USD in capital, split equally between debt offerings and equity issuance. The move follows the company’s recent investor day, during which management set a limit of 20 billion USD for external market financing between fiscal years 2027 and 2030, meaning this transaction exhausts that allocation immediately.
The capital infusion comes as Oracle scales its infrastructure to meet projected growth targets. During its latest investor presentation, the company forecasted a compound annual growth rate (CAGR) exceeding 35% for the period spanning fiscal 2026 to 2030. These investments are largely directed toward hardware and data center capacity as the firm competes in the cloud computing sector.
Financial projections indicate that capital expenditure is expected to peak in fiscal years 2027 and 2028 before moderating. The company anticipates that free cash flow will turn positive by fiscal 2028, with targets exceeding 30 billion USD by 2029. The current fundraising marks a significant pivot in capital strategy to support this expansion.