Oracle plans to raise $20 billion through bond and share sales to finance its growing artificial intelligence (AI) and cloud infrastructure investments, according to regulatory filings released on Monday.
The fundraising will support capital expenditure, debt repayment, acquisitions, dividends and share buybacks.
Shares Fall Nearly 6%
Oracle shares dropped nearly 6% on Monday, extending a decline of approximately 33% this year through Friday.
Investors remain concerned about the company’s rising infrastructure costs, debt obligations and exposure to the competitive AI market.
Ambitious Growth Targets
Oracle aims to more than triple its revenue by fiscal 2030, targeting over $225 billion in annual revenue and adjusted earnings above $21 per share.
The company expects capital spending to peak during the current and next fiscal years, while forecasting a return to positive free cash flow in the second half of fiscal 2028.
Debt and Bond Offering
As of August 31, Oracle had approximately $125.34 billion in notes payable and other borrowings, against fiscal 2026 revenue of $67.36 billion.
Its planned bond offering includes six tranches maturing between 2029 and 2046, comprising five fixed-rate bonds and one floating-rate bond. Pricing and share issuance details have not yet been finalized.
Growing Pressure in the AI Market
Oracle faces increasing competition from cloud computing leaders Microsoft and Amazon, both of which have established larger cloud businesses.
Its significant financial exposure to OpenAI, the developer of ChatGPT, is also attracting investor attention as the AI company continues to operate at a loss.
The $20 billion fundraising highlights the enormous cost of competing in the AI industry and places greater focus on Oracle’s ability to turn its infrastructure investments into sustainable revenue and long-term profitability.
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