TLDR
- Oracle (ORCL) stock rose about 11% after the company laid out its FY30 targets at Investor Day.
- Oracle expects FY30 revenue above $225 billion, a compound annual growth rate of more than 35% from FY26.
- The company targets a non-GAAP operating margin above 40% and non-GAAP EPS above $21 for FY30.
- Free cash flow is expected to turn positive in the second half of FY28, with at least $30 billion in FY29.
- Oracle will limit extra capital raises through FY30 to $20 billion, split evenly between equity and debt.
Oracle (ORCL) stock climbed 10.73% on Wednesday after the company set new financial targets for fiscal year 2030. The move followed Oracle’s Investor Day event in Las Vegas, where management presented updated medium-term guidance.
The company projects total revenue above $225 billion in FY30. That equals a compound annual growth rate of more than 35% from FY26.
Oracle also set profit goals. It is aiming for a non-GAAP operating margin above 40% and non-GAAP earnings per share above $21 for FY30.
Co-CEOs Clay Magouryk and Mike Sicilia presented the plan along with CFO Hilary Maxson. The three laid out how the company expects to fund its growth.
Cash flow and spending plans
Cash flow is where investors got the most detail. Oracle expects free cash flow to turn positive in the second half of FY28.
For FY29, the company is targeting at least $30 billion in free cash flow. That is a big jump from where things stand now, and Wall Street will likely hold management to it.
Capital spending is set to peak in FY27 and FY28. Oracle said capital expenditures should decline in FY29 after that run.
The company also said growth will be self-funded starting in FY29. Net debt to adjusted EBITDA is expected to come in below 3.5 times that year.
Oracle listed several ways it plans to cut upfront cash needs. These include vendor financing, customer-provided hardware and customer prepayments.
Limits on new capital raises
Oracle committed to capping additional capital raises through FY30 at $20 billion. That figure excludes refinancing of existing debt.
The $20 billion would be split evenly, with $10 billion in equity and $10 billion in gross debt. Investors have watched Oracle’s funding needs closely, so a firm cap likely drew attention.
The company already completed a $20 billion at-the-market equity raise in the first quarter of fiscal 2027. That is separate from the new cap.
Oracle also reaffirmed its fiscal 2027 outlook. It still expects total revenue of at least $90 billion and non-GAAP EPS of $8.10.
Management said its capital allocation priorities have not changed. Those are keeping investment-grade credit ratings, paying dividends and funding growth opportunities.
For now, the stock sits at a double-digit gain on the day. The next marker is FY27, when Oracle needs to deliver on the $90 billion revenue outlook it just repeated.
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