Oracle caps new AI financing at $20B, targets $30B FCF

Oracle's forecast came after a cash-heavy stretch in which the company spent $55.7 billion on data centers in the year to May 2026 and ran negative $23.7 billion in free cash flow over the same period. CFO Hilary Maxson, who joined in April 2026, delivered the numbers at the company's Las Vegas conference, projecting capacity growth of about seven gigawatts in the next couple of years and more than ten gigawatts by the end of fiscal 2028, while keeping the $225 billion revenue target for fiscal 2030.

The financing plan leans on vendor financing, customer-provided hardware and customer prepayments to reduce upfront cash needs until free cash flow turns positive late in fiscal 2028. Anurag Rana of Bloomberg Intelligence said the plan "could ease concern about elevated capital spending beyond the next two years." Shares rose as much as 14% on Wednesday after sliding 33% year-to-date before the forecast, which suggests investors read the figures as a relief, though whether the schedule holds depends on hyperscaler demand, a point the coverage flags.