Oracle announces Equity and Debt Financing Plan for Calendar Year 2026

Oracle (NYSE: ORCL) announced a $45–$50 billion 2026 financing plan to fund Oracle Cloud Infrastructure capacity expansion.

Rhea-AI Summary

Oracle (NYSE: ORCL) announced a $45–$50 billion 2026 financing plan to fund Oracle Cloud Infrastructure capacity expansion. The company will use a balanced mix of debt and equity, including a one-time senior unsecured bond and equity issuances such as mandatory convertible preferred securities and an at-the-market program up to $20 billion.

Goldman Sachs will lead the bond offering; Citigroup will lead the ATM and preferred offerings. The Board approved the plan and Oracle says it intends to maintain an investment-grade balance sheet.

Positive

• $45–$50B funding target for OCI capacity
• Balanced use of debt and equity to preserve ratings
• $20B authorized at-the-market equity program

Negative

• Equity funding could meaningfully dilute shareholders
• Large one-time bond issuance may increase leverage

Argus Feb 2 session

-2.75% close to close Open Argus

Details

News Market Reaction – ORCL

On Feb 2, the first trading day after this news, ORCL closed 2.75% below the previous close.

Data tracked by StockTitan Argus for the Feb 2 session.

Key Figures

Planned 2026 funding (low end): $45 billion Planned 2026 funding (high end): $50 billion ATM equity program size: $20 billion +5 more

Planned 2026 funding (low end)

$45 billion

Expected gross cash proceeds during 2026 calendar year

Planned 2026 funding (high end)

$50 billion

Expected gross cash proceeds during 2026 calendar year

ATM equity program size

$20 billion

Newly authorized at-the-market equity program

Equity funding share

Approximately half

Portion of 2026 funding via equity-linked and common equity

One-time bond issuance

Single issuance

Investment-grade senior unsecured bonds planned early 2026

Current share price

$164.58

Pre-news market price for ORCL

52-week high

$345.72

Pre-news 52-week high for ORCL

52-week low

$118.86

Pre-news 52-week low for ORCL

Historical Context

5 past events · Latest: Jan 29

5 events

1. Jan 29

   AI platform launch

   24h Move

   -2.2%

   Launched Oracle Life Sciences AI Data Platform using 129M+ de-identified EHR records.

2. Jan 29

   Cloud win hospitality

   24h Move

   -2.2%

   OPERA Cloud approved by IHG as a property management option across key regions.

3. Jan 27

   Healthcare digitization deal

   24h Move

   -4.1%

   Alrajhi Medicine adopting Oracle Health EHR and Fusion Cloud to unify operations.

4. Jan 26

   Pharmacovigilance deal

   24h Move

   +3.0%

   Voisin Consulting chose Oracle Argus to upgrade global pharmacovigilance operations.

5. Jan 15

   Earnings call notice

   24h Move

   +0.7%

   Globe Life scheduled Q4 2025 results release and conference call details.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

at-the-market equity program, mandatory convertible preferred securities, investment-grade senior unsecured bonds, Rule 10b5-1 trading plan, +1 more

5 terms

at-the-market equity program financial

"as well as a newly authorized at-the-market equity program of up to $20 billion."

An at-the-market equity program lets a company sell newly issued shares directly into the open market at the current trading price through a broker, rather than in a single, prearranged block. It provides flexible, on-demand access to cash—like drawing small amounts from a credit line—but increases the number of shares outstanding, which can reduce existing shareholders’ ownership percentage and put downward pressure on the stock price, so investors monitor program size and pacing.

mandatory convertible preferred securities financial

"include an initial issuance of mandatory convertible preferred securities, representing a modest portion"

A mandatory convertible preferred security is a hybrid investment that pays a fixed dividend like a bond or preferred share but is contractually required to convert into common stock at a set future date or under specified conditions. Investors care because it provides near-term income yet guarantees future dilution of existing shareholders and changes risk and return—like holding a loan that will later turn into ownership, affecting both expected payouts and share count.

investment-grade senior unsecured bonds financial

"Oracle intends to complete a single, one-time issuance of investment-grade senior unsecured bonds early in 2026"

A debt security that acts like an IOU from a borrower which must be repaid before other debts but is not backed by specific assets as collateral. “Investment-grade” means independent ratings see it as relatively low risk of default, so it typically pays lower interest than riskier bonds. Investors care because these bonds balance safety and income: they sit ahead of junior creditors in line for repayment yet offer higher returns than very safe cash, like a ladder between safety and yield.

Rule 10b5-1 trading plan regulatory

"The sale was made pursuant to a Rule 10b5-1 trading plan that was adopted on October 9, 2025"

A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.

Rule 144 regulatory

"filed a notice of proposed stock sales under Rule 144, covering up to 35,000 shares"

Rule 144 is a U.S. securities regulation that sets conditions under which restricted or insider-held shares can be legally resold to the public, such as required holding periods, availability of public information, limits on how much can be sold at once, and certain filing requirements. For investors it matters because it determines when previously locked-up shares can enter the market — like a release valve that can increase supply, affect share price, and signal insider intent.

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AUSTIN, Texas, Feb. 1, 2026 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced its full calendar year 2026 plan to fund the expansion of its rapidly growing Oracle Cloud Infrastructure business. Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others.

Oracle expects to raise $45 to $50 billion of gross cash proceeds during the 2026 calendar year.  The company plans to achieve its funding objective by using a balanced combination of debt and equity financing to maintain a solid investment-grade balance sheet.

On the equity side, Oracle plans to raise approximately half of its 2026 funding through a combination of equity-linked and common equity issuances. This is expected to include an initial issuance of mandatory convertible preferred securities, representing a modest portion of the overall equity funding, as well as a newly authorized at-the-market equity program of up to $20 billion. The company plans to issue equity from the at-the-market program flexibly over time at prevailing market prices, based on market conditions and capital needs.

On the debt side, Oracle intends to complete a single, one-time issuance of investment-grade senior unsecured bonds early in 2026 to cover the other half of the company's planned funding for the year. Oracle does not expect to issue additional bonds during calendar year 2026 beyond this transaction.

This funding plan reflects Oracle's commitment to maintaining an investment-grade rating, prudent capital allocation, balance sheet strength, and transparency with investors as the company continues to expand its Oracle Cloud Infrastructure business. These transactions have been approved by the Oracle Board of Directors.

Goldman Sachs & Co. LLC will be leading the senior unsecured bond offering, and Citigroup will be leading the at-the-market issuance and mandatory convertible preferred equity offering.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud.

Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

"Safe Harbor" Statement: This press release contains forward-looking statements, including statements regarding Oracle's expected funding needs, anticipated credit ratings, capital markets transactions, and financing strategy. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Among the factors that could cause actual results to differ are:  changes in the timing of any customer's purchases or ability to fund its commitments; delays or development and/or operational problems with the construction of implementation of any of the data centers; and new or different commercial opportunities that cause the Company to reevaluate its near-term capital needs. Oracle undertakes no obligation to update these forward-looking statements, except as required by law.

Oracle Corporation may file a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Oracle Corporation has filed with the SEC for more complete information about Oracle Corporation and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you may obtain a copy by visiting www.oracle.com/investor, calling our Investor Relations Department at 1-650-506-4073, writing to Investor Relations Department, Oracle Corporation, 500 Oracle Parkway, Redwood City, California 94065 or sending an email to investor_us@oracle.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/oracle-announces-equity-and-debt-financing-plan-for-calendar-year-2026-302675778.html

SOURCE Oracle

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What financing did Oracle (ORCL) announce on February 1, 2026?

Oracle announced a $45–$50 billion calendar‑year 2026 funding plan. According to the company, the plan uses a balanced mix of debt and equity, including a one-time senior unsecured bond and equity issuances like mandatory convertible preferred securities and an ATM program.

How much equity will Oracle (ORCL) raise via the at-the-market program in 2026?

Oracle authorized an at-the-market program of up to $20 billion for 2026. According to the company, equity will be sold flexibly over time at prevailing market prices based on conditions and capital needs.

What debt transaction is Oracle (ORCL) planning to fund its 2026 needs?

Oracle intends a single, one-time issuance of investment-grade senior unsecured bonds early in 2026. According to the company, no additional bond issuances are expected during calendar year 2026 beyond this transaction.

Will Oracle (ORCL) issue mandatory convertible preferred securities in 2026?

Yes, Oracle plans an initial issuance of mandatory convertible preferred securities as part of equity funding. According to the company, this represents a modest portion of the overall equity funding mix for 2026.

Why is Oracle (ORCL) raising $45–$50 billion in 2026?

Oracle is raising capital to build additional Oracle Cloud Infrastructure capacity to meet contracted demand. According to the company, funding is needed to serve major customers and support OCI expansion while maintaining investment-grade strength.