Oracle Targets Revenue Above $225 Billion in 2030 as U.S. Stocks Rise
Key Facts
Major U.S. indexes rose for a third consecutive session on October 28, as Oracle announced long-term financial targets and the Federal Reserve held interest rates steady. The S&P 500 rose 0.3% to 7,743.98 points, the Dow Jones added 0.2% to close at 52,475.10 points, and the Nasdaq Composite gained 0.3% to 26,549.85 points, according to The Associated Press. Oracle closed at $144.34, compared with $130.53 in the previous session, according to EL7 data. Reuters said the company’s shares rose more than 8% after it announced its new forecasts at its investor day. The gains came within a narrow range around the rate decision; the move alone does not mean the unchanged rate was the cause of the indexes’ rise.
The Federal Open Market Committee kept the target range for the federal funds rate at 3.75% to 4% and approved its statement by a vote of 10 to 2, according to the Federal Reserve statement. Lisa Cook and Beth Hammack voted against holding rates, preferring to raise the target range by a quarter of a percentage point at the meeting. The statement said economic activity was expanding at a solid pace and domestic spending had remained resilient. It also described productivity growth as strong and capital investment as robust, while inflation remained elevated. The committee said job gains had continued to keep pace with labor force growth and the unemployment rate had changed little; these were descriptions in the committee’s statement, not remarks by the Federal Reserve chair.
In its investor day announcement, Oracle set a target for total revenue of more than $225 billion in fiscal 2030. The company said the target represents compound annual growth of more than 35% from fiscal 2026. It also reaffirmed its fiscal 2027 outlook for revenue of at least $90 billion and non-GAAP earnings per share of $8.10. Its fiscal 2030 targets include a non-GAAP operating margin of at least 40% and earnings per share of at least $21. These targets set a timeline for revenue and earnings expansion, while the company tied its financing plans to its cash flow and capital expenditure outlook.
Oracle said it would cap additional capital markets financing through fiscal 2030 at $20 billion, excluding refinancing of existing debt. Under the current allocation, the amount includes $10 billion in equity and $10 billion in gross debt during fiscal years 2027 through 2030. The company affirmed that its growth would become self-funded starting in fiscal 2029. It also aims for net debt to adjusted earnings before interest, taxes, depreciation and amortization to be below 3.5 times that year. These commitments set out a financing framework for expansion, with a stated limit on additional capital raising and a set date for the shift to self-funding.
The company identified the second half of fiscal 2028 as the expected start of positive free cash flow, then set a target of at least $30 billion for fiscal 2029. It said capital expenditure would peak during fiscal 2027 and 2028 before declining in fiscal 2029. This trajectory follows a period of high spending and places the expected start of positive cash flow in the second half of 2028, ahead of the specific cash flow target for 2029. In the bond market, The Associated Press said the two-year Treasury yield initially rose after the Fed decision, then reversed course as traders pared their expectations for future rate increases. The Federal Reserve is expected to hold its next meeting on December 8 and 9, 2026, while investors were awaiting results from Microsoft and Alphabet after the market close, according to Reuters.