Oracle projects $225 billion revenue by 2030 and caps fundraising at $20 billion

Oracle's shares rose 11% on Wednesday after the company released a fiscal 2030 revenue outlook of $225 billion, indicating an average annual growth of about 35%. The software maker also said it will restrict additional fundraising to $20 billion between fiscal 2027 and 2030, splitting the amount evenly between equity and debt.

The company noted that vendor financing, customer-provided hardware and customer pre-payments are expected to lower cash needs as it moves toward positive free cash flow, according to a filing with the Securities and Exchange Commission.

Analysts surveyed by LSEG had projected fiscal 2030 revenue of $224.2 billion, with an 8% growth expectation for fiscal 2027 followed by faster expansion. Oracle has previously faced market pressure over its debt load, which stands at $117 billion, and a BBB- rating from S&P.

Oracle, traditionally a leader in enterprise software, entered the AI infrastructure market last year to compete with major cloud providers and to support OpenAI. Capital expenditures are slated to rise from $55.7 billion in fiscal 2026 to $91.9 billion this year, according to FactSet.

The company projects its operating margin to exceed 40% in fiscal 2030 and expects to generate more than $30 billion in free cash flow in fiscal 2029, after turning cash-flow positive in the second half of fiscal 2028. FactSet estimates current free cash flow to be negative $35 billion for this fiscal year and a similar shortfall next year.

The spread on Oracle's five-year credit default swaps has widened to 277 basis points, nearly doubling over the year.