Oracle Targets >35% Revenue CAGR to $225B by FY30, $30B Free Cash Flow in FY29
ORCL sits 19% above its 52-week low of $114.5.
Summary
Oracle laid out long-range targets: revenue growing more than 35% a year from FY26 to FY30, reaching at least $225B in FY30, with free cash flow of at least $30B in FY29 once capex peaks in FY27-FY28 and steps down, and FY30 adjusted EPS of $21 or more. It reaffirmed FY27 revenue of at least $90B and non-GAAP EPS of $8.10, so the near-term guide is intact. Management capped new funding at $20B across FY27-FY30 — $10B equity and $10B gross debt excluding refinancings — which limits further dilution after the $20B ATM was fully used in Q1. That matters because FY26 free cash flow was negative on $55.7B of capex and total debt near $129.5B; the plan leans on vendor financing and prepayments to bridge the build-out, with growth self-funded beginning in FY29 and cash flow expected to turn positive in the second half of fiscal 2028 as capex decreases in FY29. Capital allocation priorities remain maintaining investment-grade credit ratings, paying a dividend and funding growth. The targets are aggressive and the credibility test is whether quarterly results track toward the FY30 revenue path.
At the time of this announcement, ORCL was trading at $136.08 on NYSE in the Technology sector, with a market capitalization of approximately $411.5B. The 52-week trading range was $114.50 to $285.46. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.