Oracle announces Equity and Debt Financing Plan for Calendar Year 2026

Core Viewpoint - Oracle Corporation is planning to raise between $45 billion and $50 billion in gross cash proceeds during the 2026 calendar year to fund the expansion of its Oracle Cloud Infrastructure business, driven by demand from major customers like AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI [1][2]. Funding Strategy - The company intends to achieve its funding objective through a balanced mix of debt and equity financing, aiming to maintain a solid investment-grade balance sheet [2]. - Approximately half of the funding will come from equity-linked and common equity issuances, including an initial issuance of mandatory convertible preferred securities and a newly authorized at-the-market equity program of up to $20 billion [3]. - On the debt side, Oracle plans a single issuance of investment-grade senior unsecured bonds early in 2026 to cover the remaining half of its funding needs, with no additional bond issuances expected for the year [4]. Commitment to Investors - This funding plan underscores Oracle's commitment to maintaining an investment-grade rating, prudent capital allocation, balance sheet strength, and transparency with investors as it continues to expand its cloud infrastructure business [5]. - The transactions have received approval from the Oracle Board of Directors, with Goldman Sachs & Co. LLC leading the bond offering and Citigroup managing the equity issuance [5].