Oracle filed with the Securities and Exchange Commission on Monday to raise $20B, split evenly between common stock and senior notes.
The company told regulators the cash covers general corporate purposes, a bucket that includes capital spending, repaying debt, acquisitions, dividends, and buybacks. The money is meant to support data center expansion for AI customers including OpenAI.
Oracle is selling the bond half in six tranches, one floating-rate and five fixed-rate, maturing between 2029 and 2046. BofA Securities is the lead bank, alongside Wells Fargo, Citigroup, JPMorgan, and Deutsche Bank. Coupons, tranche sizes, and the share count hadn't been set.
The two offerings are legally separate, so either can close without the other.
Oracle says this is the last outside money it needs
Management capped new outside AI financing at $20B through fiscal 2030 at its Oct. 28 investor day, excluding refinancing of existing debt. Chief financial officer Hilary Maxson described the sum as the final amount needed to fund the rest of the current spending cycle.
Oracle had already completed a separate $20B share sale between June and August. It spent $55.7B on data centers in the year ended May 2026 and expects capital spending to peak this fiscal year and next before falling in fiscal 2029.
Free cash flow should turn positive in the second half of fiscal 2028 and exceed $30B in fiscal 2029, Maxson said. Fiscal 2026 revenue came in at $67.36B, and Oracle reaffirmed a fiscal 2027 forecast above $90B on the way to more than $225B in fiscal 2030.
Oracle Aims to More Than Triple Revenue by Fiscal 2030
Annual revenue, actual and company targets, $B, as of Nov. 2, 2026
Bar chart. $B. 2026 (Actual): Revenue ($B) $67.4. 2027 (Target): Revenue ($B) $90. 2030 (Target): Revenue ($B) $225.
Source: Reuters: Reuters, CNBC: CNBC
The debt load is what investors are watching
Oracle carried about $125.34B of notes payable and other borrowings as of Aug. 31, against roughly $36.37B of cash and some $236.1B of total liabilities.
Credit markets have repriced that risk. An Oracle bond with a 4.95% coupon maturing in 2031 now yields roughly 7.16%, and its five-year credit default swaps, essentially default insurance, trade near a spread of 296 after climbing around 270% over the past year.
S&P Global Market Intelligence's Gavan Nolan said that spread looks more like a higher-quality junk-rated company, and S&P cut Oracle to BBB- in July, the lowest investment-grade rung and one step above high yield.
The unease traces back to scale and concentration. Oracle lacks the revenue base of cloud rivals Microsoft and Amazon, and leans heavily on OpenAI, a customer that is still losing money while adding hundreds of billions to Oracle's cloud backlog.
Emarketer analyst Jacob Bourne called the targets ambitious and not guaranteed, though a sign Oracle is answering investor concerns. Oracle expects net debt below 3.5x annual core earnings by fiscal 2029, the year it plans to stop relying on outside funding for growth.
