Oracle Corp. (NYSE:ORCL) is reportedly preparing a massive capital raise of up to $50 billion to accelerate its cloud infrastructure expansion.
Oracle is targeting up to $50 billion to expand cloud capacity
On Sunday, Oracle said it plans to raise $45 billion to $50 billion in 2026 to build additional capacity for its cloud infrastructure.
“Oracle is raising funds to build additional capacity to meet the contracted demand of our largest Oracle Cloud Infrastructure customers,” the company said in a statement.
The financing will be split approximately equally between equity and debt, which will be one of the largest capital efforts in Oracle’s history.
Sale of shares, convertible bonds and one-off bond issue planned
On the equity side, Oracle plans to raise about half of the money through equity-related and common stock issuances. This includes mandatory convertible preferred securities, along with a market equity program of up to $20 billion.
On the debt financing front, Oracle plans to complete a single, one-time issuance of investment-grade senior unsecured notes in early 2026.
The company said it does not expect to issue any additional bonds after the transaction in the 2026 calendar year.
Cloud infrastructure revenues increase 68% as demand for AI increases
The announcement follows Oracle’s December second-quarter earnings report, in which the company posted revenue of $16.06 billion, narrowly beating Wall Street expectations.
However, adjusted earnings rose 54% year over year to $2.26 per share, easily exceeding expectations, according to Benzinga Pro.
Total revenue increased by 14%, driven by the power of cloud services. Cloud infrastructure revenue rose 68% to $4.1 billion.
Oracle’s cloud infrastructure now includes 147 live customer-facing regions, with 64 more regions in the pipeline; the company added nearly 400 megawatts of capacity in the quarter, including a 50% increase in GPU capacity compared to the previous quarter.
Strong guidance indicates confidence despite high expenses
Looking ahead, Oracle expects third quarter growth of 40% to 44% in US dollar-based cloud revenues and expects total revenue growth of up to 21%.
Price promotion: Over the past six months, Oracle is down 32.67%. On Friday, the stock fell 2.62% and in after-hours trading fell to $164.03, down 0.33%, according to Benzinga Pro.
Oracle shares score low on Value and Momentum Benzinga’s Edge Stock Rankingswith a negative price development in the short, medium and long term.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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