Oracle's financing outlook puts a timetable on the cost of its investment cycle, as U.S. stocks closed mixed Monday and investors weigh whether AI infrastructure spending can produce enough revenue.
In an Oct. 28 filing, Oracle said capital spending is expected to peak in FY27-FY28 before declining in FY29. It expects to limit additional capital-market funding for its FY27-FY30 investment cycle to $20 billion, excluding refinancing: $10 billion in equity and $10 billion in gross debt. Oracle said that plan is on top of a $20 billion at-the-market equity raise completed in FY27's first quarter.
Oracle projects free cash flow to turn positive in the second half of FY28 and reach at least $30 billion in FY29. That projected improvement follows the expected peak in capital spending.
U.S. stocks closed mixed Monday. The S&P 500 fell 0.5% to 7,541.40, and the Nasdaq Composite dropped 1.1% to 25,164.32, while the Dow Jones Industrial Average gained 0.4% to 51,983.98, the Associated Press reported. AP said nearly seven in 10 S&P 500 stocks advanced.
Barron's reported that investors are questioning how quickly companies can earn revenue from AI infrastructure investments. The publication quoted Claudio Irigoyen, head of global economics research at BofA Global Research, asking, “Will firms be able to monetize their investments?” Barron's also reported strategist Jay Woods said the pullback offered opportunities for value investors while hurting some high-growth investors.
The Federal Reserve held the federal funds target range at 3.75% to 4% on Oct. 28. The Federal Open Market Committee's 10-2 vote included dissents from Lisa D. Cook and Beth M. Hammack, who favored a quarter-point increase. The committee's next scheduled meeting is Dec. 8-9.
Advanced Micro Devices said it will report fiscal third-quarter 2026 results after the market closes Tuesday, Nov. 3. The company scheduled a conference call for 5 p.m. ET.
