Oracle expects free cash flow to turn positive in fiscal 2028
“Oracle expects its free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029 as capital spending declines, Chief Financial Officer Hilary Maxson said, off…”
Oracle shares, which have fallen around one-third so far this year, rose more than 8% in afternoon trading on Wednesday. Speaking at the cloud and database company’s investor day, Maxson said Oracle would begin financing its growth internally in fiscal 2029.
She added that the company would limit additional capital raising to $20 billion through fiscal 2030. Oracle has become a focus of investor concerns over the rising cost of artificial intelligence infrastructure. Unlike cloud giants such as Microsoft and Amazon, the company has a smaller revenue base and relies heavily on OpenAI, the loss-making developer of ChatGPT, as a customer.
For fiscal 2030, Oracle forecast revenue of more than $225 billion, an adjusted operating margin above 40% and adjusted earnings exceeding $21 per share. The company reaffirmed its fiscal 2027 forecast of revenue exceeding $90 billion and adjusted earnings of $8.10 per share.
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