Oracle Corporation Announces $45-50 Billion Funding Plan for Cloud Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Funding Objective: Oracle Corporation aims to raise $45 to $50 billion in 2026 through a balanced mix of debt and equity financing to meet the cloud infrastructure demands from major clients like AMD, Meta, and NVIDIA, reflecting strong confidence in market growth.
- Equity Financing Strategy: The company plans to raise approximately half of its funding through the issuance of mandatory convertible preferred securities and a newly authorized at-the-market program of up to $20 billion, enhancing capital structure flexibility and stability under varying market conditions.
- Debt Financing Plan: Oracle intends to complete a one-time issuance of investment-grade senior unsecured bonds early in 2026 to cover the other half of its planned funding, ensuring optimized capital allocation while maintaining its investment-grade rating.
- Transparency and Governance: This funding plan has been approved by the Board of Directors, indicating Oracle's commitment to transparency and effective communication with investors as it continues to expand its cloud infrastructure business, further solidifying its market position.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like ORCL with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 169.010
Low
180.00
Averages
309.59
High
400.00
Current: 169.010
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oracle Plans to Raise $50 Billion to Expand Cloud Infrastructure
- Funding Overview: Oracle Corporation plans to raise between $45 billion and $50 billion in 2026 through a balanced mix of debt and equity financing to meet the cloud infrastructure demands from major clients like AMD, Meta, and NVIDIA, demonstrating a strong response to market needs.
- Equity Financing Details: The company expects to raise funds through the issuance of mandatory convertible preferred securities and an at-the-market equity program of up to $20 billion, allowing for flexible financing based on market conditions while maintaining investment-grade financial health.
- Debt Financing Arrangement: Oracle intends to conduct a one-time issuance of investment-grade senior unsecured bonds early in 2026 to cover half of its planned funding for the year, ensuring sufficient capital for its cloud infrastructure expansion.
- Strategic Implications: This funding plan, approved by the Board of Directors, reflects Oracle's prudent approach to capital allocation and transparency, aiming to strengthen its market position by enhancing its cloud capabilities.
Continue Reading
Bitcoin Troubles Signal Increased Risk Aversion
- Bitcoin Risk Escalation: The ongoing decline of Bitcoin raises concerns among investors regarding risk assets, prompting a shift towards safer investments, which could impact overall market sentiment and liquidity.
- Support Level Testing: Major indexes show weakness while testing support levels, indicating uncertainty about future economic prospects, which may lead to increased selling pressure.
- Precious Metals Decline: The sharp drop in silver prices reflects a waning demand for safe-haven assets, potentially affecting investment strategies and price stability in the precious metals market.
- Upcoming Earnings Reports: Earnings reports from Google, AMD, Eli Lilly, Amazon, and Palantir are on the horizon, with the market closely monitoring their potential impact on stock prices, especially in the current unstable market environment.
Continue Reading