Oracle’s Up-to-$50 Billion 2026 Funding Plan Signals the Next Phase of the AI Data-Center Buildout

Oracle said it expects to raise $45 billion to $50 billion in calendar 2026 through a combination of stock sales and debt, explicitly linking the move to the scale of its data-center investment cycle. The plan addresses a core investor concern: AI infrastructure demand can ramp faster than operating cash flow, especially when large customers require capacity to be built ahead of revenue recognition and cash collections. Oracle framed the structure as a way to fund growth without compromising credit quality.

The company indicated that up to $20 billion of the 2026 total could come from at-the-market share sales, with the rest raised via bond issuance early in 2026. Oracle also stated it does not expect additional debt issuance beyond that this year. The financing plan arrives after concerns about cash burn intensified; figures tied to its December results pointed to roughly $10 billion in cash outflow over the first half of its fiscal year, putting a spotlight on funding strategy and timing.

Credit markets reacted favorably to the increased transparency. The company’s credit-default swaps tightened after the plan was outlined, a sign that bond investors viewed the proposed funding mix as reducing near-term balance-sheet risk. Oracle also disclosed it filed for an offering of 100 million depositary shares, while assigning clear roles to major banks: Goldman Sachs to lead the bond sale and Citigroup to manage the equity and convertible preferred offerings.

The bigger investment question is how quickly these AI infrastructure bets convert into durable, high-margin growth. Funding at this magnitude implies that near-term profitability and free cash flow could remain under pressure, especially as depreciation ramps and operating costs scale with new data-center capacity. Some analysts expect free cash flow may not turn positive until FY29, which makes execution risk the defining variable: if demand remains strong and utilization ramps quickly, the buildout can look prescient; if not, the market will focus on dilution, leverage, and the opportunity cost of capital.