Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030

Oracle (ORCL) shares rose 8.6% in Wednesday trading after the cloud and software giant laid out an aggressive long-term growth strategy, projecting that annual revenue will reach at least $225 billion by fiscal 2030. The ambitious targets, detailed during the company's investor day, offer a roadmap for how Oracle plans to convert its heavy investments in artificial intelligence infrastructure into sustained profitability and cash flow.

Ambitious 2030 Financial Goals

According to its investor-day presentation, Oracle is targeting a compound annual revenue growth rate of more than 35% from fiscal 2026 through fiscal 2030. The company also provided long-term guidance on profitability, forecasting a significant expansion in earnings and margins.

Key fiscal 2030 targets include:

• Annual revenue of at least $225 billion.
• Non-GAAP earnings per share (EPS) of at least $21.
• A non-GAAP operating margin of at least 40%.

These projections signal the company's confidence in its ability to meet surging demand for computing capacity driven by AI workloads and capture a significant share of the cloud infrastructure market.

Capital Spending and Cash Flow Path

Ad

Oracle management outlined a plan to rein in spending after a period of intense investment. The company expects capital expenditures to peak in fiscal 2027 and 2028 before beginning to decline in fiscal 2029. This moderation in spending is projected to significantly boost cash generation.

Oracle anticipates achieving positive free cash flow in the second half of fiscal 2028, with the metric rising to at least $30 billion in fiscal 2029. The company stated it expects its growth to become self-funded beginning in fiscal 2029, at which point it also projects its net debt to adjusted EBITDA ratio will fall below 3.5 times.

Financing and Near-Term Outlook

To support its expansion, Oracle plans to limit additional capital-market funding to $20 billion through fiscal 2030. This new funding is expected to be split evenly between equity and gross debt, excluding the refinancing of existing debt. This plan follows the completion of a $20 billion at-the-market equity offering in the first quarter of fiscal 2027, highlighting the substantial capital required for its infrastructure build-out.

Alongside its long-term vision, Oracle reaffirmed its outlook for fiscal 2027. The company continues to expect revenue of at least $90 billion and non-GAAP EPS of $8.10 for that year.