Oracle Shares Jump Nearly 11% as Investor Day Details Cash Flow Outlook

Oracle shares closed about 11% higher at roughly $144 after the company’s investor-day outlook laid out a path toward positive free cash flow, easing concerns over the cost of expanding AI infrastructure. The stock rose more than 13% intraday, adding more than $40 billion to Oracle’s market value.

Oracle expects free cash flow to turn positive in the second half of FY2028 and reach about $30 billion in FY2029. Capital spending is expected to peak in FY2027 or FY2028 before declining. Oracle also capped additional equity and debt financing through FY2030 at $20 billion.

The company reaffirmed its FY2027 targets of at least $90 billion in revenue and adjusted earnings per share of $8.10. Its FY2030 targets include revenue of at least $225 billion, an adjusted operating margin of 40% or higher, and adjusted earnings per share of at least $21.

Recent AI partnerships broaden Oracle Cloud Infrastructure’s hardware and software reach. Oracle expanded its work with OpenAI and Nvidia, with OCI superclusters slated to use Nvidia’s Vera Rubin systems at multigigawatt scale. Google Cloud TPUs are scheduled to become available through OCI starting in 2027. Oracle also expanded collaborations with Intel, Cerebras and Snowflake.