Oracle expects to turn cash flow positive in second half of fiscal 2028

Oracle anticipates its free cash flow will turn positive during the second half of fiscal 2028, with expectations to surpass $30 billion in revenue for fiscal 2029, according to CFO Hilary Maxson. The company's CFO provided some reassurance to investors who have been concerned about Oracle's substantial investments in artificial intelligence, which have contributed to the stock's decline of roughly a third this year.

During Oracle's investor day, Maxson announced that the company will begin self-funding its growth in fiscal 2029 and will restrict further capital raises to $20 billion through fiscal 2030. Oracle has become a primary focus of investor concerns regarding the rising expenses associated with AI infrastructure due to its limited revenue base compared to cloud giants like Microsoft and Amazon, which heavily rely on a single customer, the loss-making ChatGPT maker OpenAI.

For fiscal 2030, Oracle has projected revenue of over $225 billion, an adjusted operating margin exceeding 40%, and adjusted earnings of more than $21 per share. The company reaffirmed its fiscal 2027 revenue forecast of more than $90 billion and adjusted earnings of $8.10 per share.