Oracle's $20 billion financing plan reaches its fiscal 2030 funding ceiling

Oracle expects capital spending to peak this fiscal year and next

Oracle plans to raise $20 billion in debt and equity to finance an artificial intelligence infrastructure buildout, according to separate filings with the Securities and Exchange Commission on Monday. The software company is selling $10 billion in common stock and $10 billion in bonds.

Oracle said it would use the proceeds for general corporate purposes, with capital expenditures, debt repayment, dividends and future investments or acquisitions among the possible uses.

The broader list of uses comes as Oracle lined up financing for its data-center buildout and chip purchases. Oracle was raising billions this year by selling stock and debt.

Last week, Oracle said it would not raise more than $20 billion in additional funding in the capital markets through fiscal 2030. The plan disclosed Monday reaches that stated ceiling.

Oracle projects that capital expenditures will peak this fiscal year and into the next fiscal year before stepping down in fiscal 2029. The company expects to start funding its own growth in fiscal 2029.

The financing plan therefore arrives at the peak of Oracle’s current capital-spending cycle. Oracle’s stated uses include capital spending, debt repayment, dividends, future investments and acquisitions.

The proposed financing would pair additional borrowing with common-stock sales. Some investors have raised concerns about Oracle’s debt, and those concerns have weighed on the company’s shares, according to The Wall Street Journal.

Oracle’s plan thus reaches its stated $20 billion funding ceiling while the company is near the top of its spending cycle. The infrastructure buildout is the immediate focus behind the financing, but the general-purpose structure also leaves the company’s other corporate priorities in scope. Oracle expects capital spending to step down and its own growth funding to begin in fiscal 2029.