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Oracle Surges 11% After Analyst Day Targets $225 Billion in Revenue and Positive Free Cash Flow by 2028

By Market Flux··2 min read
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Oracle Corporation $ORCL

$144.49+10.67%as of publication

5D Change
+11.93%
Market Cap
$394.69B

Oracle shares jumped as much as 14% on Wednesday, closing up roughly 11% at around $148, after the company held its financial analyst day in Las Vegas and issued sweeping long-term financial targets that eased investor concerns about the cost of its artificial intelligence infrastructure buildout. The stock had been down 33% heading into the event, making the guidance reset a pivotal moment for the year.

At the event, Oracle set a fiscal year 2030 revenue target of at least $225 billion, implying a compound annual growth rate above 35% from fiscal 2026 levels. The company also targets non-GAAP earnings per share of $21 or more and a non-GAAP operating margin of at least 40% by that year. For fiscal 2027, Oracle reaffirmed its existing guidance of at least $90 billion in revenue and non-GAAP EPS of $8.10.

The detail that drove the sharpest market reaction was Oracle's free cash flow timeline. CFO Hilary Maxson said the company expects to turn free cash flow positive in the second half of fiscal 2028, then exceed $30 billion in fiscal 2029. That represents a nearly $54 billion swing from the negative $23.7 billion in free cash flow expected in fiscal 2026. Capital expenditures are projected to peak in fiscal years 2027 and 2028 before stepping down in fiscal 2029, at which point Oracle says growth will be self-funded. Net debt to EBITDA is targeted below 3.5 times by fiscal 2029.

To address balance sheet concerns, Oracle pledged to cap additional capital raises at $20 billion through fiscal 2030, split evenly between equity and debt, excluding refinancing. That $20 billion ceiling is separate from a $20 billion equity raise already completed in the first quarter of fiscal 2027. The company said customer prepayments, customer-provided hardware and vendor financing will help reduce upfront cash needs.

Ahead of the analyst day, Oracle also announced that Google's tensor processing units will be available through Oracle Cloud Infrastructure, broadening the company's AI chip offerings alongside Nvidia's Vera Rubin NVL72 systems, which Oracle had already made accessible on its platform. Oracle additionally signed a memorandum of understanding with F5 to bring web application and API security to Oracle Cloud, and separately was reported to be creating an AI workspace integrated with ChatGPT. Oracle was also among 33 major companies that formally objected to OKX and ICE's planned exchange listing tokenized versions of their shares.

Oracle shares ended the session as the standout mover on a broadly flat day. The S&P 500 gained 0.28% and the Nasdaq added 0.21%, with the Federal Reserve holding its benchmark rate unchanged at 3.75% to 4.00% in a 10 to 2 vote and offering little guidance on December.

© AI-generated summary is provided by Market Flux

Sources

  1. Yahoo FinanceMicrosoft Vs. Oracle: Same 2-Pronged AI Strategy, Very Different Outcomes
  2. FINANCIERNEWS🛑 Oracle Opts Out of OKX-ICE Tokenized Stock Plan as Objections Hit 26 Oracle joined IBM, Intel and IonQ in objecting to OKX-ICE offering blockchain versions of its shares, per the venture's Oct. 26 notice. $ORCL #Tokenization #CryptoExchanges
  3. CoinpediaNvidia Stock News: China AI Chip Shipments Fall 44% As Huawei Gains Ground
  4. CnbcGoogle alters its cloud playbook, enlisting partners to sell more AI chips
  5. 24/7 Wall StreetMicrosoft Vs. Oracle: Same 2-Pronged AI Strategy, Very Different Outcomes
  6. ReutersOracle expects to turn cash flow positive in second half of fiscal 2028
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  12. FaststocknewssORACLE $ORCL SETS FY30 OUTLOOK OF $225B+ REVENUE AND $21+ NON-GAAP EPS AT INVESTOR DAY • FY30 outlook: revenue of $225B+, non-GAAP operating margin of 40%+, non-GAAP EPS of $21+ • FY29: targets free cash flow of $30B+, with capex expected to decrease • FY27 outlook reaffirmed: revenue of $90B+, non-GAAP EPS of $8.10 • Will limit additional capital raises to $20B through FY30
  13. WallstengineOracle $ORCL targets $225B+ in annual revenue by FY2030. Key financial targets: • FY27 revenue: $90B+ • FY30 revenue: $225B+ • Revenue growth: 35%+ CAGR through FY30 • FY30 non-GAAP operating margin: 40%+ • FY30 non-GAAP EPS: $21+ • Positive free cash flow: 2H FY28 • FY29 free cash flow: $30B+ • CapEx to peak in FY27-FY28 • Growth to become self-funded in FY29 • FY29 net debt/EBITDA: Below 3.5x Oracle also plans to limit additional capital raises through FY30 to $20B: • $10B in equity • $10B in debt This excludes debt refinancing and is separate from the $20B equity raise already completed in Q1 FY27.
  14. FinancialjuiceOracle Reaffirms FY2027 Outlook, Targets $225 Billion Revenue by FY2030 $ORCL Oracle reaffirms FY2027 revenue outlook of at least $90 billion Oracle maintains FY2027 non-GAAP EPS guidance of $8.10 Oracle targets FY2030 revenue of at least $225 billion, representing a 35%+ CAGR Oracle sets FY2030 non-GAAP EPS target of $21 or more Oracle commits to limiting additional funding requirements Capital expenditures are expected to step down in fiscal 2029 Sees positive cash flow in 2028
  15. DeItaone$ORCL - ORACLE TARGETS $225 BILLION IN REVENUE BY 2030 Oracle forecasts at least $225 billion in revenue by fiscal 2030, implying over 35% annualized growth. The company targets 40% operating margins, $21 EPS, and $30 billion in free cash flow by fiscal 2029. Oracle expects AI infrastructure spending to peak in 2027–2028 before transitioning to self-funded growth.
  16. WOLF_FinancialOracle $ORCL targets $225B+ in FY30 revenue, representing over 35% annual growth from FY26. It also sees free cash flow swinging from -$23.7B in FY26 to $30B+ in FY29, a nearly $54B turnaround. FCF is expected to turn positive in H2 FY28, with growth self-funded from FY29.
  17. FirstSquawkORACLE REAFFIRMS ITS FY2027 OUTLOOK, MAINTAINING REVENUE GUIDANCE OF AT LEAST $90 BLN AND NON-GAAP EPS GUIDANCE OF $8.10