REDWOOD SHORES (dpa-AFX) - Oracle Corp.'s (ORCL) shares increased significantly after the tech major announced positive long-term outlook and plans for reaching positive free cash flow, closing Wednesday's regular trading 11 percent higher. In the pre-market activity on the NYSE, the shares were down 0.37 percent.
During its Investor Day 2026, Oracle's co-CEO Clay Magouyrk, co-CEO Mike Sicilia and CFO Hilary Maxson announced various plans to accelerate value creation.
Oracle reaffirmed its fiscal 2027 outlook for total revenue of at least $90 billion and adjusted earnings per share of $8.10.
Further, the company said that following a period of peak capex in fiscal 2027 and fiscal 2028, capital expenditures are expected to step-down in fiscal 2029, supporting positive free cash flow of at least $30 billion in fiscal 2029.
At its Investor Day, Oracle also described that its unique portfolio positioning across cloud infrastructure, database and applications would drive total revenue growth of more than 35 percent CAGR from fiscal 2026 to fiscal 2030. This would result in total revenue of $225 billion or more in fiscal 2030.
By 2030, the company also projects adjusted operating margin of 40 percent+ and adjusted earnings per share of $21+.
The firm also projects strong profitability and free cash flow generation from each of its three business models.
Oracle plans to limit additional funding to be raised in the capital markets for its fiscal 2027 to 2030 investment cycle to $20 billion, currently expected to be $10 billion in equity and $10 billion in gross debt. The incremental funding requirement excludes refinancing of existing debt.
The company added that the vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements through the transition to positive free cash flow.
The company further confirmed that growth will be self-funded beginning in fiscal 2029 and net debt to adjusted EBITDA will be below 3.5 times in the year.
Oracle shares closed 10.73 percent higher on Wednesday's regular trading at $144.54. In the pre-market activity, the shares are currently down 0.37 percent, trading at $143.80.
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