Oracle Sets Capital Raising Limits for 2027-2030 Investment Cycle
During its investor day on October 28, Oracle (ORCL) reaffirmed its long-term financial targets, including a goal of $225 billion in revenue and at least $21 per share in non-GAAP earnings by fiscal 2030. Crucially, the company introduced a cap on new capital raises for the 2027-2030 cycle, pledging to raise no more than $10 billion in additional stock and $10 billion in gross debt. This move aims to address investor concerns regarding dilution and rising interest costs. While Oracle's free cash flow has recently been negative due to heavy capital expenditures, management expects spending to peak in fiscal 2027-2028. The company projects free cash flow will turn positive in the second half of fiscal 2028 and reach $30 billion or more by fiscal 2029, allowing for self-funded growth.
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Topics: capital allocation debt management free cash flow investor day revenue guidance
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Part of the story Oracle Sets Ambitious FY30 Revenue Targets and Long-Term Financial Guidance (7 articles)