Oracle Locks In $20 Billion Raise as Stephens Turns Bullish on Cash-Flow Visibility
Published on 11/03/2026 at 19:50 | Editorial boerse-global.de
Oracle has finalized the terms of a $20 billion capital raise, pairing fresh equity with a multi-tranche bond sale to bankroll its AI and cloud infrastructure build-out. The stock climbed 7.0% on the news.
The equity leg covers 86,206,897 new common shares priced at $116 apiece, a placement Oracle expects to net roughly $9.9 billion. Alongside it, the company is issuing $10.0 billion of senior notes split across five tranches maturing between 2029 and 2046, carrying coupons from 7.000% to 8.650%. Net proceeds from the debt are seen at about $10.0 billion. Both offerings are slated to close on November 4, 2026, subject to customary conditions, with Oracle earmarking the funds for general corporate purposes.
A Ceiling Set at Investor Day
The raise fits inside a framework Oracle laid out at its investor day just over a week ago, when management capped additional capital-market financing at $20 billion through fiscal 2030. Refinancing of existing debt sits outside that limit, the company made clear. At the same event, Oracle reaffirmed its fiscal 2027 guidance of at least $90 billion in revenue and adjusted earnings of $8.10 per share, and pointed to positive free cash flow in the back half of fiscal 2028 followed by at least $30 billion of free cash flow in fiscal 2029.
Should investors sell immediately? Or is it worth buying Oracle?
That clearer funding picture prompted Stephens to upgrade Oracle to Overweight from Equal Weight, with the analyst lifting the price target to $213 from $185. The broker cited improved visibility on the company's financing needs and its free-cash-flow prospects.
More Transparency on Data-Center Deals
Beyond the balance sheet, Oracle is changing how it deals with the communities hosting its AI data centers. According to Bloomberg Law, the company will stop asking state and local governments to sign non-disclosure or confidentiality agreements for those projects and will encourage its development partners to follow suit.
On the hardware side, Reuters reported on October 27 that Oracle has widened its arrangements with Nvidia for the supply of AI servers to a scale of several gigawatts. Financial terms of that expansion were not disclosed.
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