Oracle expects to turn cash flow positive in second half of fiscal 2028
Hilary Maxson said capital spending will peak this fiscal year and next as Oracle aims to self-fund growth in fiscal 2029.
- On Wednesday, Oracle shares jumped more than 8 per cent after CFO Hilary Maxson announced the company would cap additional capital raises at $20 billion through fiscal 2030, aiming to reassure investors about AI infrastructure costs.
- Heavy debt and reliance on ChatGPT maker OpenAI to fund data center expansion caused investor worry, as Oracle lacks the deep revenue base of cloud giants Microsoft and Amazon.
- The company reported an incredible $664 billion backlog in fiscal Q1, with analysts expecting revenue to reach more than $225 billion by fiscal 2030 and grow 34% in fiscal 2027.
- Maxson stated Oracle will begin self-funding growth by fiscal 2029, with free cash flow projected to exceed $30 billion as capital expenditures decline, offering relief to investors.
- Wall Street remains optimistic, with 80% of analysts rating the stock a buy and a median price target of $240 implying an 84% jump over the coming year.
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Oracle shares jumped after the company gave a much better-than-expected long-term free cash flow forecast. The announcement reassured investors who had been anxiously watching the return on its massive artificial intelligence development. The company's shares rose as much as 14 percent during the day, reaching $148.48, the biggest intraday gain since March, especially considering that they had lost 33 percent of their value from the beginning of…
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WTVBOracle expects to turn cash flow positive in second half of fiscal 2028
Oct 28 : Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029 as capital spending declines, CFO Hilary Maxson said, offering some relief to investors concerned about its hefty AI outlays.Shares of the company, down by around a third so far this
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