Oracle soars more than 10%... “Revenue to surge 35% annually”

[Financial News]  

Oracle shares surged by double digits on the 28th (local time), following an upbeat forecast that revenue would reach $225 billion in fiscal 2030. That would represent average annual revenue growth of 35%.
The rosy outlook could dispel concerns that massive investment in artificial intelligence (AI) is failing to translate into actual corporate results.
Oracle also reassured investors about its AI-related debt-fueled investments, saying it would cap additional fundraising at $20 billion.
According to CNBC, Oracle said at its “Investor Day” event that it would raise up to $20 billion over fiscal 2027–2030, with half coming from equity and half from bonds.
In a filing with the U.S. Securities and Exchange Commission (SEC), Oracle said it would deploy three broad financial strategies to reduce spending pressures during the transition to positive free cash flow (FCF) amid large-scale AI investment.
The first is vendor financing, in which suppliers or equipment providers lend funds on behalf of the purchasing company or defer payment. NVIDIA Corporation has often sold its semiconductors this way, backed by its substantial cash reserves.
Oracle also plans to adopt what is known as “customer-provided hardware,” whereby customers directly procure or cover the cost of hardware needed to operate services or build infrastructure. Since servers and other equipment are set up using customers’ money, this can reduce Oracle’s capital expenditures.
Oracle also plans to use prepayments. Under this approach, customers pay in advance before cloud services are actually provided. This secures short-term liquidity and can significantly ease cash pressures.
In an LSEG survey, Wall Street analysts forecast that Oracle’s revenue would grow 8% in fiscal 2027 and then increase rapidly over the following two years. They expect Oracle’s revenue to reach $224.2 billion in fiscal 2030.
Meanwhile, Oracle has faced selling pressure this year amid concerns over AI investment, and its stock has plunged more than 30%. 

[email protected] Song Kyung-jae Reporter