Oracle filed plans Monday to issue $20 billion in new stock and debt to finance its artificial intelligence buildout, according to filings with the Securities and Exchange Commission. The offering includes $10 billion in common stock and $10 billion in senior notes. The hyperscaler outlined the fundraising at last week's investor day, but shares tumbled more than 6% Monday.
Oracle said proceeds will fund general corporate purposes, which may include capital expenditures, repayments of debt and future investments. The company also issued a revenue forecast of at least $225 billion for fiscal 2030 and said it was limiting additional capital market funding for the 2027 to 2030 investment cycle to that $20 billion.
Oracle shares are down 33% in 2026 and 50% over the past 12 months. It has $125.34 billion in debt as of Aug. 31, with the bulk in senior notes. Its five-year credit default swaps sit at 296, up 270% in one year, and S&P downgraded Oracle to BBB- in July.
"Can they do what they say they are going to do?" said Pat Nerney, head of investment solutions at Dynasty Financial Partners. "If this gets executed according to plans laid out, they will be rewarded. If they have to come back to market in the back half of '27 ... look out."
Source: Hacker News · Summarized by HeadlinesBriefing