Oracle Files $20B Stock-and-Bond Raise to Fund 10x Compute Expansion

Oracle filed a $10 billion equity offering and a separate $10 billion bond offering on the same day, fulfilling what management said at its investor day would be no more than $20 billion in additional outside financing for AI through fiscal 2030. The capital raise funds a fiscal 2027 capital expenditure plan of $90 to $95 billion, largely to build data centers for customers including OpenAI. Oracle's investor day slide deck shows plans to grow compute capacity from roughly 1GW in FY25 to roughly 10GW by FY28. The company's remaining performance obligations grew from $138 billion at the end of FY25 to $638 billion at the end of FY26, roughly $500 billion in new contracted business in 12 months. Oracle projects annual revenue exceeding $225 billion by FY2030, up from $67.4 billion in FY2026, with free cash flow of at least $30 billion annually by FY2029 and operating margins above 40%, with capital expenditures expected to peak in FY2027 to FY2028 before the business becomes self-funding.