Oracle Forecasts Positive Cash Flow and Limits Further AI Financing

Technology · First reported 28 Oct, 18:36 · Updated 18:56

Image: Wikimedia Commons · Fikkar Bonggi · CC BY-SA 4.0

Oracle said it expects free cash flow to turn positive in the second half of fiscal 2028 and pledged no more than $20 billion in additional AI financing through fiscal 2030. It also forecast more than $225 billion in fiscal 2030 revenue.

Oracle expects capital spending to peak in the current fiscal year and next, as it expands cloud-computing capacity.
The company said it expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029.
Oracle pledged no more than $20 billion in additional AI financing through fiscal 2030, and said that amount would be split evenly between debt and equity.
Oracle expects vendor financing, customer-provided hardware and customer prepayments to reduce its upfront cash needs. It expects to stop relying on outside funding for growth from fiscal 2029.
Oracle forecast fiscal 2030 revenue above $225 billion, adjusted operating margin above 40% and adjusted earnings above $21 per share.

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Key facts

Positive free cash flow expected: Second half of fiscal 2028
Additional AI financing pledge: No more than $20 billion through fiscal 2030
Fiscal 2029 free cash flow forecast: More than $30 billion
Fiscal 2030 revenue forecast: More than $225 billion
Borrowings as of August 31: $125.34 billion