---
title: Oracle Caps New Debt and Share Sales at $20 Billion and Expects Positive Free Cash Flow in Fiscal 2028
description: Oracle had about $125 billion of borrowings in August and now caps new debt and share sales at $20 billion through fiscal 2030, with positive cash flow in 2028.
author: Darie Nani (Editor-in-Chief)
date: 2026-10-29T11:42:10.603Z
updated: 2026-10-29T11:42:10.621Z
canonical: https://www.sovereignmagazine.com/article/how-much-debt-does-oracle-have
image: https://cdn.nanimediahouse.com/oracle-saline-township-data-center-construction-506269.webp
categories: Finance
content_type: News
region: Global
publication: Sovereign Magazine
schema_type: Article
---

Oracle has set a limit on how much more money it will raise from investors to pay for its AI data-center build-out: $20 billion through fiscal 2030, which it currently expects to split into $10 billion of new shares and $10 billion of new debt. At an Investor Day in Las Vegas on October 28, co-chief executives Clay Magouyrk and Mike Sicilia and chief financial officer Hilary Maxson also said Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and to reach at least $30 billion in fiscal 2029. Oracle's fiscal year ends May 31, so the second half of fiscal 2028 runs from December 2027 to May 2028.

Oracle had about $125.3 billion of notes payable and other borrowings at August 31, according to its latest quarterly filing: $7.6 billion due within a year and $117.7 billion due later. The total was down from about $129.5 billion at May 31, after Oracle repaid $4.2 billion of senior notes, term loans and other borrowings during the quarter, and it ended August with $38.9 billion of cash, cash equivalents and restricted cash.

[In September, Oracle expected to raise about $40 billion more in this fiscal year alone](https://www.sovereignmagazine.com/article/larry-ellison-oracle-stock-sale-cancelled). The new plan puts the total for all four years, fiscal 2027 through fiscal 2030, at about that figure: the $19.9 billion of shares Oracle sold in the first quarter of fiscal 2027 through an at-the-market program of up to $20 billion, plus no more than $20 billion more, which leaves roughly $30 billion of equity and $10 billion of debt in all. Refinancing of existing debt is not counted.

## Oracle Says Capital Spending Peaks in Fiscal 2027 and 2028

Oracle expects its capital spending to stay at its highest in fiscal 2027 and fiscal 2028 and to fall in fiscal 2029, when it says its growth will become self-funded. In the quarter to August 31, it spent $28.5 billion on capital expenditures, up from $8.5 billion a year earlier, against $23.1 billion of cash from operations. Free cash flow for the quarter was minus $5.4 billion, compared with minus $362 million a year earlier.

## Vendor Financing Counts Toward Oracle's 3.5 Times Leverage Target

Oracle expects vendor financing, hardware supplied by customers and customer prepayments to reduce the cash it has to pay upfront until free cash flow turns positive. It targets net debt below 3.5 times adjusted EBITDA in fiscal 2029.

Oracle's net debt measure counts borrowings, vendor financing, and operating and finance lease liabilities, then subtracts cash and marketable securities, so equipment paid for through vendor financing still counts toward the leverage target. Adjusted EBITDA is Oracle's non-GAAP earnings with depreciation and operating lease expense added back.

Oracle says its priorities for cash remain keeping its investment-grade credit ratings, paying a dividend and funding growth.

## Oracle Targets $225 Billion of Revenue and $21 of Earnings Per Share in Fiscal 2030

For fiscal 2030, which ends in May 2030, Oracle is aiming for total revenue of $225 billion or more, compound annual growth of more than 35% from fiscal 2026. It also expects a non-GAAP operating margin of 40% or more and non-GAAP earnings of $21 or more a share.

Oracle reaffirmed its outlook for the current year, fiscal 2027: total revenue of at least $90 billion and non-GAAP earnings of $8.10 a share.

Oracle's announcements are at [oracle.com/news](https://www.oracle.com/news/).

## FAQ

**Q: What is Oracle's Series D preferred stock?**
Oracle's 6.50% Series D mandatory convertible preferred stock is recorded in stockholders' equity, not in the $125.3 billion of notes payable and other borrowings. It was carried at $4.95 billion at August 31, 2026. Depositary shares, each a 1/2,000th interest in one preferred share, trade on the New York Stock Exchange as ORCL-PRD, and Oracle paid $81 million of preferred dividends in the quarter.