Oracle Corporation

Oracle Corporation sells cloud infrastructure, databases and enterprise applications, along with software support, hardware and services. Its common stock trades on the New York Stock Exchange as ORCL. Artificial intelligence infrastructure is driving a much larger investment cycle, alongside its established application and database businesses.

Completed financing

On November 4, 2026, Oracle completed a common-stock offering and five fixed-rate bond series. The stock sale issued 86,206,897 shares at $116 each. The bonds totaled $10 billion of face value, with coupons from 7% to 8.65% and maturities from 2029 to 2046.

The bond series carry $776.75 million of combined annualized cash coupons, calculated by applying each fixed rate to its principal. The 2037 bonds mature on February 4, 2037; the other four series mature on November 4 in their respective years. Initial coupon payments fall in February and May 2027.

The new shares equal 2.85% of the historical August 31 common-share base used in the prospectus. Combined proceeds from both offerings were about $19.84 billion after underwriting and bond issue-price discounts, before other offering expenses.

This completed the $10 billion equity and $10 billion gross-debt mix announced on October 28. Management said that was the additional capital-market funding needed through fiscal 2030, excluding ordinary refinancing. It is separate from the $20 billion gross at-the-market stock program completed in the August quarter, which produced $19.909 billion of net proceeds.

Latest reported results

First-quarter revenue increased 30%, with cloud infrastructure revenue up 121% to $7.388 billion. Cloud applications revenue grew 10% to $4.219 billion. GAAP operating income increased 57%, while net income available to common shareholders reached $4.679 billion after $81 million of preferred dividends.

Adjusted operating income was $8.151 billion, excluding stock-based compensation, intangible amortization, and restructuring and other items. Operating costs are rising with the infrastructure build-out: the cloud-and-software segment margin fell to 55% from 60%. That segment measure excludes stock compensation, intangible amortization and certain allocated costs.

Cash generation and investment

Quarterly operating cash flow included $11.363 billion of customer prepayments with a significant financing component. Cash capital spending of $28.499 billion exceeded operating cash flow by $5.396 billion, the company's negative free cash flow for the quarter.

Oracle also presented net cash outlay for capital spending of $17.966 billion. That separate company measure adjusts cash capital spending for $830 million of net repayments of equipment-related financing and the customer prepayments. The prepayments are already included in operating cash flow.

The first fiscal quarter normally benefits from customer collections following fourth-quarter bookings. Oracle's $664 billion of remaining performance obligations represents contracted future revenue, with about 13% expected to be recognized over the following 12 months.

Balance sheet and obligations

At August 31, cash and cash equivalents were $36.369 billion and marketable securities were $708 million. A separate, rounded $2.6 billion of restricted cash was recorded in other current assets. Notes and other borrowings had a carrying amount of $125.337 billion, before the November financing.

Recognized operating lease liabilities were $34.621 billion, and finance lease liabilities were $9.185 billion, separate from those borrowings. Oracle also disclosed $288 billion of additional lease commitments, mainly for data centers, generally starting from the second quarter of fiscal 2027 through fiscal 2029. These future commitments were not yet on the balance sheet.

Management said existing liquidity, operating cash flow and available financing would cover at least the following 12 months of obligations. It also described flexibility over the timing of some discretionary capital spending.

Expectations and the funding model

Oracle reaffirmed its fiscal 2027 outlook on October 28: at least $90 billion of revenue and adjusted EPS of $8.10. It expects positive free cash flow during the second half of fiscal 2028 and at least $30 billion in fiscal 2029.

Its fiscal 2030 targets include at least $225 billion of revenue, an adjusted operating margin of 40% or more and adjusted EPS of at least $21. Management expects vendor financing, customer hardware and prepayments to reduce upfront cash needs while new capacity starts producing revenue.

The CFO's October presentation illustrated that approach with a one-gigawatt project and a larger build-out model. Its roughly $220 billion of modeled remaining capital spending covers the second quarter of fiscal 2027 through fiscal 2028 and scales up the illustrative one-gigawatt example.

Our analysis of Oracle's financing cost examines the interest and share-count consequences of the completed raise.