Oracle filed preliminary prospectuses Monday, Nov. 2, for $20 billion in stock and bond sales as its latest quarter showed $28.499 billion in capital expenditures and negative free cash flow.
The filings cover $10 billion in common stock and $10 billion in senior notes. Oracle says each transaction can close without the other. It lists capital spending, debt repayment, investments or acquisitions, dividends and share repurchases among possible uses for the proceeds. The filings do not dedicate the money solely to artificial intelligence projects.
Oracle’s Oct. 28 Investor Day release set a $20 billion limit on additional capital-market funding for its fiscal 2027-30 investment cycle, excluding debt refinancing. The framework split that additional funding between $10 billion in equity and $10 billion in gross debt, following a separate $20 billion at-the-market equity raise completed in fiscal 2027’s first quarter. The new filings build on Oracle’s earlier disclosure of its funding plan. Oracle expects capital spending to peak in fiscal 2027 and fiscal 2028, positive free cash flow in the second half of fiscal 2028, and at least $30 billion in free cash flow in fiscal 2029.
For the three months ended Aug. 31, 2026, Oracle reported $19.345 billion in revenue, including $7.388 billion from cloud infrastructure, up 121% year over year. Capital expenditures were $28.499 billion, and free cash flow was negative $5.396 billion.
Reuters reported Oracle shares down 5.8% at 10:02 a.m. ET Monday, while Amazon rose 4.1% and Nvidia gained 1.5%. NDTV Profit later reported Oracle down 5.5%, with Amazon up 4.5%, Alphabet up 2% and Nvidia up 1.6%.
The stock prospectus uses Oracle’s Oct. 30 closing price of $130.67 for an illustration, not as a final offering price. At that price, a sale of 76,528,659 shares would bring the outstanding share count to 3,100,255,354 from 3,023,726,695, reducing existing holders’ proportional ownership under that scenario. The final share count depends on the sale price and terms.
The notes prospectus does not yet specify interest rates or the size of each tranche. The filings give no closing date.