Oracle Plans $40B Raise, Flags Capex Peak in FY27-28 as AI Buildout Accelerates
ORCL sits 29% above its 52-week low of $114.5.
Summary
Oracle is planning a $40 billion capital raise in fiscal 2027 through debt and equity, including an up to $20 billion at-the-market program, while aiming to maintain its investment-grade rating. This follows the massive $92 billion capex plan announced in June and the $55.7 billion already spent in FY2026. Management now expects capex to peak in FY2027-28 and decline in FY2029, with possible free cash flow improvement starting that year. The company also disclosed it is a direct supplier in a multiyear compute agreement with OpenAI, providing large-scale AI infrastructure. Headcount was cut 13% year-over-year to 141,000, with $1.84 billion in severance costs, signaling aggressive cost management alongside the buildout. The Quantinuum quantum processor hosting deal adds a new dimension to Oracle's cloud offerings. The scale of the raise and the capex trajectory update are material for positioning decisions.
At the time of this announcement, ORCL was trading at $147.19 on NYSE in the Technology sector, with a market capitalization of approximately $419.1B. The 52-week trading range was $114.50 to $345.72. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Wiseek News.