Shares of Oracle Corp. ended lower Monday after the company unveiled plans to raise up to USD50 billion in debt and equity to expand its cloud infrastructure, reviving market concerns that returns from its artificial intelligence investments may take years to materialize.
Oracle’s stock initially moved higher before sliding to a 2.7 percent loss by the close, a sign of investor unease over the scale and timing of the funding effort. The company said Sunday it expects to raise between USD45 billion and USD50 billion in gross proceeds to build additional capacity to meet contracted demand for Oracle Cloud Infrastructure. Major customers include AMD, Meta, NVIDIA, OpenAI and TikTok.
While Oracle has positioned itself as a key beneficiary of surging AI-driven cloud demand, some investors remain cautious about the heavy capital outlays required to support that growth. The latest financing plan underscores both the opportunity and the risk: strong visibility into customer demand paired with significant near-term spending.
Oracle plans to fund roughly half of its 2026 capital needs through equity. That will include an initial issuance of mandatory convertible preferred securities and a newly authorized at-the-market equity program of up to USD20 billion. The company said shares would be issued flexibly over time, depending on market conditions and capital requirements.
The remaining funding will come from a single, one-time issuance of investment-grade senior unsecured bonds early in 2026. Oracle does not expect to issue additional bonds during the calendar year, highlighting its focus on preserving an investment-grade credit profile.
Oracle said the funding strategy reflects disciplined capital allocation and balance sheet strength as it continues to scale its cloud business. Goldman Sachs will lead the bond offering, while Citigroup will lead the equity transactions, all of which have been approved by the company’s board.
