Oracle Holds $225B FY2030 Target, Caps New Capital Raises at $20B as Shares Jump 12%

Oracle (ORCL) used its 2026 Investor Day on Wednesday to lay out how it plans to pay for its AI build-out. The company reaffirmed fiscal 2030 targets of at least $225 billion in revenue and $21 or more in non-GAAP earnings per share, capped additional capital-markets funding through fiscal 2030 at $20 billion, and said capital spending will peak in fiscal 2027 and 2028 before stepping down. It also kept its fiscal 2027 outlook of at least $90 billion in revenue and $8.10 in non-GAAP EPS. The stock was up about 12% in afternoon trading, as provided to MarketCatalyst, after being quoted at $140.44, up 7.6%, at 2:28 PM ET.

The targets

The $225 billion and $21 figures match the fiscal 2030 targets Oracle gave at its October 2025 analyst meeting, according to coverage of that event, so the update is a reaffirmation with new detail on funding and cash flow rather than a higher revenue or EPS goal. Oracle did not give dollar amounts for capital spending. By our calculation, reaching $225 billion from at least $90 billion in FY2027 implies about 36% annual growth over three years, and $21 from $8.10 implies about 37% annual EPS growth. A 40% operating margin on $225 billion would be about $90 billion of non-GAAP operating income.

How Oracle plans to fund the build-out

Oracle said it will limit additional funding raised in the capital markets for FY2027 through FY2030 to $20 billion, expected to be $10 billion of equity and $10 billion of gross debt. That is on top of the $20 billion at-the-market equity sale Oracle completed in the first quarter of FY2027, and it excludes refinancing of existing debt. The company expects growth to become self-funded in FY2029, with net debt below 3.5 times adjusted EBITDA. Net debt in Oracle's definition includes borrowings, vendor financing and lease liabilities, less cash and marketable securities.

Oracle said vendor financing, customer-provided hardware and customer prepayments should reduce upfront cash requirements as it moves toward positive free cash flow. It also said it will maintain investment-grade credit ratings, pay a dividend and fund growth.

Where Oracle is starting from

In its fiscal first quarter, which ended Aug. 31, Oracle reported revenue of $19.3 billion, up 30%, and remaining performance obligations of $664 billion, up $209 billion from a year earlier. Cloud infrastructure revenue was $7.4 billion, up 121%. Gross capital spending was $28.5 billion, or $18.0 billion after financing offsets and customer prepayments, and free cash flow was negative $5.4 billion. The Investor Day plan therefore asks investors to accept two more years of heavy spending before free cash flow turns positive in the second half of FY2028.

What it means

The new content is the funding path: a hard cap on additional capital raises, a date for positive free cash flow, and a target for $30 billion or more in FY2029 as spending declines. Investors have focused on how Oracle would finance its data-center commitments, and the $20 billion limit, with equity limited to $10 billion, speaks to dilution and leverage concerns. The execution risks are the size of the build-out, reliance on vendor and customer financing, and delivering the 35%-plus growth rate required to reach the FY2030 targets.

Sources: Oracle, fiscal 2027 first-quarter results (Sept.) and its Oct. 28 Investor Day materials. The share price and its intraday moves are as provided to MarketCatalyst. This is informational, not a recommendation to buy or sell.