Oracle shares rose 11% on Wednesday after the company forecast revenue of $225bn for its 2030 financial year and said it would limit new fundraising until then to $20bn, CNBC reports.
The forecast, given at an investor day, implies average annual growth of about 35%. Oracle said the money raised between fiscal 2027 and 2030 would be split equally between shares and debt, and that vendor financing, customer-supplied hardware and prepayments would reduce its upfront cash needs until free cash flow turns positive.
The shares had lost about a third of their value this year amid worries that rising interest rates and heavy borrowing would make its AI data centre expansion too expensive. Oracle has issued $117bn in long-term debt and holds the lowest investment-grade rating at S&P. It supplies computing capacity to OpenAI.
Source: CNBC
