Oracle announced it plans to raise $45 billion to $50 billion in gross cash proceeds during calendar year 2026 to fund the expansion of its rapidly growing Oracle Cloud Infrastructure business, as it works to build additional capacity to meet what it described as contracted demand from its largest OCI customers.
In outlining that demand, Oracle cited a roster of major technology and AI names, including AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI. The company cited the financing as a capacity-building initiative tied to signed commitments, positioning the funding plan as a deliberate, full-year roadmap rather than a series of ad hoc capital-markets transactions.
Oracle expects to achieve its 2026 funding objective through a balanced mix of debt and equity financing, with the goal of maintaining a solid investment-grade balance sheet. The company described the approach as intentionally split, with roughly half of the targeted proceeds expected to come from equity-related instruments and the other half from debt. By presenting the plan in advance, Oracle emphasized transparency to investors and highlighted that the funding strategy is designed to support growth in cloud infrastructure without compromising balance sheet strength.
On the equity side, Oracle said it plans to raise approximately half of its 2026 funding through a combination of equity-linked and common equity issuances. The plan is expected to include an initial issuance of mandatory convertible preferred securities, which Oracle characterized as representing a modest portion of overall equity funding. Oracle also said its board has authorized a new at-the-market equity program of up to $20 billion. The company indicated it would issue equity under its at-the-market program flexibly over time at prevailing market prices, with timing and volume determined by market conditions and evolving capital needs. This structure gives Oracle discretion to pace issuance rather than committing to a single large common equity deal on a fixed date, while still signaling the magnitude of capacity investment it believes is required to meet customer demand.
On the debt side, Oracle said it intends to complete a single, one-time issuance of investment-grade senior unsecured bonds early in 2026 to cover the other half of the company’s planned funding for the year. Oracle added that it does not expect to issue additional bonds in calendar year 2026 beyond that transaction, effectively treating the debt component as a single financing event rather than multiple tranches spread throughout the year.
The company noted that this aligns with its investment-grade posture and prudent capital allocation, suggesting it intends to pair a predictable debt funding step with a more flexible equity program that can be scaled up or down based on market conditions.
Oracle said the transactions have been approved by its board of directors and identified the financial institutions expected to lead key components.
While Oracle did not provide granular project details in the announcement, the plan’s structure underscores how central OCI capacity has become to Oracle’s growth priorities, particularly as large customers increasingly require massive-scale deployments to support cloud workloads and AI-related demand. By pairing a single planned investment-grade bond issuance with an equity program that can be executed over time, Oracle positioned the funding mix to secure substantial capital while preserving flexibility, controlling the financing cadence, and managing trade-offs among leverage, cost of capital, and potential shareholder dilution.
Support: Goldman Sachs & Co. LLC is set to lead the senior unsecured bond offering, while Citigroup is set to lead the at-the-market issuance and the mandatory convertible preferred equity offering.
