Oracle targets revenue of at least $225 billion in 2030, with annual growth exceeding 35%
Key Facts
Oracle set a target of at least $225 billion in revenue for fiscal 2030, with compound annual growth exceeding 35% between fiscal 2026 and fiscal 2030, according to the company’s announcement at its investor day on October 28, 2026. For the same year, it is targeting a non-GAAP operating margin of at least 40% and non-GAAP earnings per share of at least $21. The targets follow the company’s reaffirmation of its fiscal 2027 outlook, with revenue of at least $90 billion and non-GAAP earnings per share of $8.10. Oracle said its revenue would grow by more than 35% annually over the plan period, “reaching $225 billion or more” in 2030. The plan pairs revenue and profit expansion with a path to lower capital spending and improve cash generation.
The targets are underpinned by a recent acceleration in cloud activity. Oracle’s revenue in the first quarter of fiscal 2027 reached about $19.3 billion, up 30% year over year, while cloud revenue rose 62% to $11.6 billion. Cloud infrastructure revenue was $7.4 billion, up 121% in dollar terms, according to the company’s results. Oracle said customer demand for AI training services and cloud inference “continues to grow at a faster pace than supply.” It added that it delivered 850 megawatts of additional data center capacity during the quarter. In the previous fiscal year, revenue rose 17% to $67.4 billion in 2026, while cloud revenue increased 39% to $34 billion.
The accumulated contractual commitments reflect the scale of demand underlying the company’s plan. Remaining performance obligations stood at $664 billion at the end of the first quarter of fiscal 2027, an increase of $209 billion year over year, according to Oracle’s results. That followed a balance of $638 billion at the end of the fourth quarter of fiscal 2026, making the first-quarter figure the latest available reading. The company says equipment prepaid or provided by customers under large AI contracts totaled $75 billion in fiscal 2026. It added that these components “significantly reduce the amount of capital Oracle needs to raise.” Customer financing thus forms part of the funding for data center expansion, alongside cash generated by operations and capital markets.
But the expansion is putting clear pressure on free cash flow. Oracle recorded record operating cash flow of $32 billion in fiscal 2026, up 54%, while free cash flow was negative $23.7 billion. The company expects capital expenditures to peak in fiscal 2027 and 2028, then decline in 2029. Against that backdrop, it is targeting a return to positive free cash flow in the second half of fiscal 2028, followed by $30 billion or more in 2029. This path is a central part of the plan, linking the current increase in capacity to improved cash flows in subsequent years.
Oracle set a cap of $20 billion on the additional financing it expects to raise from capital markets during the 2027 to 2030 investment cycle, allocated under its current estimate as $10 billion in equity and $10 billion in gross debt, excluding refinancing of existing debt. The company said growth would be self-funded starting in fiscal 2029, and that it is targeting net debt to adjusted earnings before interest, taxes, depreciation and amortization of less than 3.5 times that year. The cap follows $43 billion raised through debt financing and $5 billion through equity financing in 2026, while the company had expected to raise about $40 billion in debt and equity in 2027. It also completed a $20 billion sale of common stock through its at-the-market program during the first quarter of 2027. These figures show the financing plan shifting from large near-term issuances toward greater reliance on self-funding, according to Oracle’s timeline.
Oracle announced that its investor day was held as part of Oracle AI World on October 28, 2026, and began streaming at 10:55 a.m. Central Time. EL7 data showed the stock closing at $130.53 on October 27, then at $130.30 on October 28; closing prices alone do not measure the stock’s movement following the announcement. The company is scheduled to report second-quarter fiscal 2027 results on December 14, 2026, its next disclosure listed on its calendar. The next quarterly results will provide a fresh reading on cloud and revenue growth against the 2027 targets the company reaffirmed. Capital spending and cash flow indicators will also remain relevant to its stated path through 2029.