Oracle Targets at Least $225 Billion in Revenue in 2030, With Annual Growth Above 35%
Key Facts
Oracle set a target of at least $225 billion in revenue in fiscal 2030, with compound annual growth of more than 35% between fiscal 2026 and fiscal 2030. The company announced the targets during its investor day presentation in Las Vegas on October 28, 2026, according to its statement via PR Newswire. The target puts strong revenue growth at the center of its plan for the coming years. Oracle also targets an operating margin of 40% or more and earnings per share of $21 or more in 2030, on a non-GAAP basis. The company also reaffirmed its fiscal 2027 outlook for revenue of at least $90 billion and earnings per share of $8.10 on the same basis.
The long-term targets follow a 30% increase in total revenue to $19.3 billion in the first quarter of fiscal 2027. In the same quarter, cloud revenue rose 62% to $11.6 billion, according to the company’s results. In fiscal 2026, revenue increased 17% to $67.4 billion, while cloud revenue rose 39% to $34.0 billion. The comparison reflects the different periods covered by these rates: the annual cloud figures are for 2026, while the quarterly figures are for the first quarter of 2027. Oracle is building its new outlook on a revenue base that expanded in the previous fiscal year, while first-quarter results show faster growth in cloud revenue.
The company set a timeline for its cash flow transition ahead of reaching its longer-term revenue target. It expects positive free cash flow in the second half of fiscal 2028 and targets $30 billion or more in 2029. Free cash flow recorded a deficit of $23.7 billion in fiscal 2026, despite a 54% increase in operating cash flow to $32.0 billion. These figures show a divergence between cash generated from operations and free cash flow during the current investment period. Oracle said it expects capital expenditures to peak in fiscal 2027 and 2028, before declining in 2029.
Oracle capped the additional financing it expects to raise from capital markets during the investment cycle spanning fiscal 2027 to 2030 at $20 billion. Under the company’s current estimate, that amount comprises $10 billion in equity and $10 billion in gross debt, excluding refinancing of existing debt. The company said it expects to fund growth internally starting in fiscal 2029. It also targets a net debt to adjusted earnings before interest, taxes, depreciation and amortization ratio of less than 3.5 times that year. These financing targets link the expected decline in capital expenditures in 2029 with the shift to funding growth from the company’s own resources.
The new financing cap follows Oracle’s raising about $43 billion in debt financing and $5 billion in equity financing in fiscal 2026. The company had expected to raise about $40 billion from issuers in fiscal 2027 through a mix of debt and equity. In its fiscal 2026 results, it said the value of prepaid equipment or equipment provided by customers under large artificial intelligence contracts was $75 billion. It added that these components significantly reduce the capital required to build artificial intelligence data centers. The figures provide context for a financing approach that combines capital markets with customer contributions, alongside infrastructure spending plans.
Remaining performance obligations stood at $638 billion at the end of the fourth quarter of fiscal 2026, up 363% year over year and after a quarterly increase of $85 billion. Oracle confirmed the date of its investor day as October 28, 2026, as part of Oracle AI World, with the broadcast set to begin at 10:55 a.m. Central Time. EL7 data showed the stock closed at $130.53 on October 27 and then at $130.30 on October 28. These are daily closing prices, not a measure of the stock’s intraday movement following the announcement. In its financial plan, Oracle expects free cash flow to return to positive territory in the second half of fiscal 2028, ahead of its target of $30 billion or more in 2029.