Deborah Sophia / Reuters : Oracle pledges to limit new financing to $20B through FY 2030, expects free cash flow to turn positive in H2 FY 2028 and top $30B in FY 2029; ORCL jumps 11%+ — Oracle said it expects capital spending to peak this fiscal year and next as it builds more cloud capacity, but pledged to raise …
Oracle pledges to limit new financing to $20B through FY 2030, expects free cash flow to turn positive in H2 FY 2028 and top $30B in FY 2029; ORCL jumps 11%+ (Deborah Sophia/Reuters)
In short
Oracle outlined a strategic financial roadmap tied directly to its ongoing cloud capacity expansion. The software giant anticipates that capital spending will hit its peak across the current fiscal year and the next. Following this heavy investment phase, free cash flow is projected to swing positive in the second half of fiscal year 2028 and cross the $30 billion mark in fiscal year 2029, even as the company limits fresh financing through 2030.
Key points
- Capital spending is projected to peak during the current and subsequent fiscal years to s…: Capital spending is projected to peak during the current and subsequent fiscal years to support cloud expansion.
- Free cash flow is expected to shift into positive territory in the second half of fiscal…: Free cash flow is expected to shift into positive territory in the second half of fiscal year 2028.
- Oracle is maintaining strict debt and financing constraints through 2030 despite ongoing…: Oracle is maintaining strict debt and financing constraints through 2030 despite ongoing heavy capital investments.