Stock Market Today, Oct. 28: Oracle Surges on Fiscal 2030 Revenue Guidance of $225 Billion

On October 28, Oracle Corporation (ORCL) experienced a significant surge in its stock price, closing at $144.54, marking a 10.73% increase. The tech giant's Investor Day guidance for fiscal year 2030 projected revenue of at least $225 billion, which propelled Oracle's stock performance. Following the guidance, investors now closely monitor the company's progress in generating free cash flow and managing AI-related capital expenditures (capex).

Oracle's stock volume climbed to 79.1 million shares, a substantial increase of about 161% compared to its three-month average of 30.4 million shares. Meanwhile, the broader market also saw gains, with the S&P 500 (^GSPC) closing at 7,744, up 0.28%, and the Nasdaq Composite (^IXIC) reaching 26,550, up 0.27%.

In the context of enterprise software and cloud infrastructure, Oracle's peers SAP (SAP) and IBM (IBM) also experienced gains, with SAP closing at $236.93, up 0.48%, and IBM at $253.22, up 1.19%. These upward movements provided a stable backdrop for Oracle's more substantial price movement.

During Oracle's Investor Day on October 28, the company announced that its fiscal 2027 sales were expected to reach $90 billion, surpassing the previous year's record revenue of $67.4 billion. Oracle also projected that free cash flow would become positive in the second half of fiscal 2028, with at least $30 billion generated in fiscal 2029.

This forecast alleviated concerns about Oracle's capital spending, particularly in relation to AI investments. The company's management stated that vendor financing, customer-provided hardware, and customer prepayments would help reduce upfront cash requirements during the transition to positive free cash flow.

The recent positive outlook for Oracle comes as the stock has declined by approximately 50% over the past year. The significant drop was primarily due to Oracle's heavy expansion of computing infrastructure to capitalize on the artificial intelligence boom and the issuance of debt to cover the associated costs. This led to a downgrade of the company's credit rating to BBB- in 2026, one notch above speculative grade.

Earlier this year, Oracle's September quarter performance and backlog strength helped renew confidence in the cloud growth and debt management strategies. The company reported record revenue of $19.3 billion, reflecting a remarkable 30% year-over-year increase.