Oracle Just Capped How Much New Money It Will Raise. I'd Consider Buying a Small Stake in the Stock.
The cloud giant's 2030 revenue target is a year old. Its cap on new shares and debt is brand new.
Oracle set ambitious targets for revenue and earnings at its investor day on Oct. 28, aiming for $225 billion in revenue by 2030 and at least $21 per share in adjusted earnings. The stock fell about 56% from its September 2025 record close of $328.33. A key addition to the plan was a cap on how much more money Oracle would raise from investors and lenders in the coming years.
The company pledged to raise at most $20 billion in new funding during its fiscal 2027-to-2030 investment cycle, split between $10 billion in stock and $10 billion in gross debt. This brings the total to around $40 billion in new stock and debt over four years. This cap is more significant than the revenue target for shareholders, as the $10 billion in new stock represents only about 2% of the company's current share count.
The stock cap is modest compared to Oracle's recent sales and debt levels. While the cap doesn't cover everything, it does limit additional shares and debt standing between current shareholders and the $21 earnings target. Oracle's leverage target treats vendor financing and lease liabilities as debt, so those obligations are included in the 3.5-times-EBITDA goal.
The stock trades at around 18 times earnings, considered a fair price for the plan. The author suggests buying a small stake, adding more only if capital spending begins to fall.
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