Oracle shares are up as much as 14% after forecast of $30 billion in free cash flow for fiscal 2029
Oracle expects free cash flow to turn positive in late fiscal 2028, after a negative $23.7 billion in fiscal 2027.
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Chart: ORCL, one-minute prices, three sessions
Oracle shares are up as much as 14%, at $148.48, after the company forecast $30 billion in free cash flow for fiscal 2029. The forecast eases concerns about heavy spending on AI infrastructure.
Free cash flow is the cash a company has left after paying for its capital spending. Oracle expects this figure to turn positive in late fiscal 2028, after a negative $23.7 billion in fiscal 2027. The company plans to cap additional fundraising at $20 billion through May 2030, using a mix of debt and equity. Customer prepayments, hardware supplied by customers and vendor financing will reduce its upfront cash needs.
Oracle set out these targets at its Investor Day. The share move suggests investors now see the cash flow turn and the funding cap as answers to the execution risk that drove the stock down. Shares fell 6% on October 14 on those concerns. The targets do not resolve the Cerner breach liability or the New Mexico power constraints, both of which remain open overhangs on the stock. They do narrow a debate that had widened beyond capital spending alone.
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