Oracle Jumps 10.7% as Investor Day Sets $30B Cash Flow Target and Caps New Funding at $20B

ORCL closed at $144.54 on Oct. 28, up 10.73%, after the company used its investor day to answer the question that has dogged the stock all year: when its AI data-center buildout starts generating cash. Oracle said free cash flow will turn positive during the second half of fiscal 2028 and reach at least $30 billion in fiscal 2029, according to its 8-K filing. The rally was its best day since May, per Yahoo Finance data cited by Gotrade, though shares had fallen about 50% over the prior 12 months.

The revenue goals are large. Oracle targets $225 billion or more in fiscal 2030 revenue, more than 35% compound annual growth from fiscal 2026, when it booked a record $67.4 billion, and at least $90 billion in fiscal 2027. The filing also sets fiscal 2030 targets of a 40%+ non-GAAP operating margin and non-GAAP EPS of $21 or more. Reports tie the $225 billion figure to the outlook Oracle first gave in October 2025, so the new elements are the cash-flow timeline and the funding limits rather than the revenue goal itself.

The funding commitment is what eased debt worries. Oracle said it will limit additional capital raises through fiscal 2030 to $20 billion, excluding refinancing, split between $10 billion of equity and $10 billion of gross debt, per the 8-K. That is a cap on new financing, not on spending: capital expenditures are expected to peak in fiscal 2027 and 2028 before stepping down in fiscal 2029, and Oracle spent $28.5 billion on data centers and equipment in its first fiscal quarter alone, according to Stock Titan. Vendor financing, customer-supplied hardware and customer prepayments are meant to reduce upfront cash needs. Free cash flow was negative $23.7 billion in fiscal 2026 (Stock Titan), and Oracle's credit rating sits at BBB-, one notch above speculative grade.

What to watch: quarterly progress on capex and free cash flow against the fiscal 2028 turn, the timing and pricing of the planned $10 billion equity raise, and whether the fiscal 2027 revenue target of at least $90 billion holds as new data-center capacity comes online.