$50 billion "shoe drops": French bank says Oracle Corporation's financing is a "risk clearing", target price $290

Investment bank BNP Paribas of France stated that the announcement by Oracle Corporation (ORCL.US) regarding its 2026 equity and debt financing plan is a "risk clarification event" for the IT giant. Analyst Stefan Slowinski of the bank has a target price of $290 for Oracle Corporation's stock. Slowinski wrote in a report to clients, "We believe that Oracle Corporation's financing announcement could be a potential risk clarification event for its stock, especially when combined with the upcoming financing round for OpenAI (recent reports suggest a strong demand in the market for its financing in the range of $50 billion to $100 billion)." "As the ability of Oracle Corporation to provide funding for its OCI (Oracle Cloud Infrastructure) construction and the ability of OpenAI to fulfill its funding obligations become clearer, we expect these issues to decrease in importance in investor discussions, allowing the market to refocus on whether Oracle Corporation can convert its large remaining performance obligations (RPO) into OCI revenue." He added that using a financing structure involving both debt and equity (while limiting equity dilution) should help the company maintain its target investment-grade credit profile. Slowinski also stated, "Furthermore, Oracle Corporation plans to raise $22.5 billion to $25 billion in debt through a single issue, which should alleviate concerns in the market about its repeated entrance into the financing market in calendar year 2026 (CY26) and may result in the company obtaining more favorable terms from credit investors." Last week, Oracle Corporation announced that it expects to raise $45 billion to $50 billion in 2026 to expand additional capacity for its cloud infrastructure business. The company plans to meet its funding needs through a combination of debt and equity. On the equity side, Oracle Corporation anticipates that approximately half of its 2026 financing total will come from a combination of equity-linked instruments and common stock issuance.