Oracle laid out an ambitious long-term growth and profitability plan at its 2026 Investor Day, targeting at least $225 billion in revenue by fiscal 2030. The company also set milestones for cash generation and debt reduction, while limiting how much additional capital it plans to raise to fund its investment cycle.
The plan assumes capital spending peaks in fiscal 2027 and 2028, then declines. Oracle expects that step-down to help it reach positive free cash flow in the second half of fiscal 2028 and rely on internally generated funds to finance growth starting in fiscal 2029.
Key details
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Fiscal 2030 targets: Oracle aims for total revenue of $225 billion or more, representing annual growth of more than 35% from fiscal 2026. It also targets a non-GAAP operating margin of at least 40% and non-GAAP earnings per share of at least $21.
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Cash-flow milestones: The company expects positive free cash flow in the second half of fiscal 2028 and is targeting at least $30 billion of free cash flow in fiscal 2029. It expects capital spending to peak in fiscal 2027–28 and step down in fiscal 2029.
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Funding limits: For its fiscal 2027–30 investment cycle, Oracle plans to limit additional capital-market funding to $20 billion, excluding refinancing of existing debt. The company currently expects that to consist of $10 billion in equity and $10 billion in gross debt.
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Separate equity raise already completed: The planned $20 billion of additional funding is on top of a $20 billion at-the-market equity raise completed in the first quarter of fiscal 2027.
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Other ways to manage cash needs: Oracle expects vendor financing, hardware provided by customers and customer prepayments to reduce the upfront cash required during the transition to positive free cash flow.
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Leverage target: Oracle expects net debt to adjusted EBITDA to be below 3.5 times in fiscal 2029. Its calculation of net debt includes borrowings, vendor financing and operating and finance lease liabilities, less cash and marketable securities.
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Near-term outlook unchanged: Oracle reaffirmed its fiscal 2027 targets of at least $90 billion in revenue and non-GAAP earnings per share of $8.10.
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Capital-allocation priorities: The company said it remains focused on maintaining investment-grade credit ratings, paying a dividend and funding growth opportunities.
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Non-GAAP basis: The operating-margin and earnings-per-share targets use non-GAAP measures, which exclude certain costs, including stock-based compensation and some acquisition- and restructuring-related expenses.
Plain-English implications
Oracle expects to use external funding during the heavy-investment years, but says it will cap additional capital-market funding at $20 billion through fiscal 2030, apart from debt refinancing. Its plan then depends on lower capital spending and stronger cash generation: Oracle says growth will be self-funded beginning in fiscal 2029, with leverage below 3.5 times adjusted EBITDA that year.