On November 2, 2026, Oracle filed with the SEC to raise $20 billion through equal $10 billion sales of common stock and senior bonds to finance its artificial intelligence infrastructure expansion. Despite pledging to cap market capital raises at $20 billion through fiscal 2030 and projecting long-term revenue over $225 billion, Oracle shares fell 6%. Investors remain concerned over Oracle's $125.34 billion debt load and its BBB- credit rating.
Details of the $20 billion capital raise
- ▪Oracle announced last week that it would limit additional capital market funding for its fiscal 2027 to 2030 AI investment cycle to $20 billion
- ▪Oracle disclosed that proceeds from its $20 billion stock and bond offerings will fund general corporate purposes, including capital expenditures, debt repayments, future investments, dividends, and stock buybacks
- ▪The bond portion of Oracle's $20 billion November 2, 2026 capital raise comprises six tranches maturing between 2029 and 2046, including one floating-rate tranche and five fixed-rate tranches
- ▪Oracle filed regulatory documents with the SEC to raise $20 billion by selling $10 billion in common stock and $10 billion in senior debt notes
Oracle share price declines
- ▪Oracle shares fell nearly 6% on November 2, 2026, following the SEC regulatory filings detailing Oracle's $20 billion stock and bond offering
- ▪Oracle shares declined 33% during 2026 through November 2, 2026, and dropped 50% over the preceding 12-month period
Credit risk and bond market reaction
- ▪Yields on Oracle's 4.95% investment-grade bonds maturing in 2031 rose to 7.267% on November 2, 2026
- ▪Oracle's five-year credit default swap spread reached 296 basis points on November 2, 2026, representing a 270% increase over the prior 12 months
- ▪S&P Global Market Intelligence analyst Gavan Nolan stated on November 2, 2026, that Oracle's five-year credit default swap spread aligns with a high-end junk bond rating
- ▪S&P downgraded Oracle's credit rating in July 2026 to BBB-, placing the software company one tier above high-yield status
Existing debt and bond performance
- ▪Oracle reported holding $125.34 billion in total debt and borrowings as of August 31, 2026, primarily consisting of senior notes
- ▪Oracle's existing 6.85% bonds due in 2066 fell more than 1.2 cents on the dollar, according to Tradeweb data reported on November 2, 2026
Revenue and earnings projections
- ▪LSEG consensus data indicates Wall Street analysts project Oracle's adjusted earnings per share for fiscal 2027 at $8.14, compared with fiscal 2026 revenue of $67.36 billion
- ▪Oracle issued financial projections targeting at least $225 billion in revenue and over $21 in adjusted earnings per share for fiscal 2030
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