Oracle Shares Surge Following Ambitious Fiscal 2030 Revenue Guidance
Oracle (ORCL) shares rose over 10% following an Investor Day presentation that provided aggressive long-term growth targets. The company projected fiscal 2030 revenue to reach at least $225 billion, supported by a forecast that fiscal 2027 sales will hit $90 billion. This guidance aims to reassure investors regarding the company's massive capital expenditures required for AI infrastructure expansion. To mitigate concerns over cash flow and debt, Oracle expects free cash flow to turn positive in the second half of fiscal 2028, reaching at least $30 billion by fiscal 2029. The company also noted that vendor financing and customer prepayments will help reduce upfront cash requirements during this transition period. This news comes as a significant recovery attempt for the stock, which had faced pressure due to high AI-related spending and a previous credit rating downgrade.