Oracle sets $225 billion-plus long-term revenue outlook at Investor Day
Oracle sets a fiscal 2030 revenue outlook of $225 billion or more, targets $30 billion free cash flow in fiscal 2029 and reaffirms its fiscal 2027 guidance.
Key takeaways
- Oracle Corporation (ORCL) set a long-term outlook for total revenue of $225 billion or more in fiscal 2030 at its Investor Day in Las Vegas on Oct. 28. It also targets $30 billion or more in free cash flow in fiscal 2029 and caps additional capital raises through fiscal 2030 at $20 billion. It reaffirmed its fiscal 2027 outlook.
Oracle Corporation (ORCL) set a long-term outlook for total revenue of $225 billion or more in fiscal 2030 at its Investor Day in Las Vegas, the company said in an 8-K filing on Oct. 28.
The company expects total revenue to grow more than 35% a year, measured as a compound annual growth rate, or CAGR, from fiscal 2026 through fiscal 2030.
Oracle also set targets for profitability. It expects a non-GAAP operating margin of 40% or more and non-GAAP earnings per share of $21 or more.
The company said it expects to reach positive free cash flow during the second half of fiscal 2028. It set a free cash flow target of $30 billion or more for fiscal 2029.
Capital expenditures are expected to step down in fiscal 2029, after a period of peak spending in fiscal 2027 and fiscal 2028.
Oracle committed to limiting additional capital raises through fiscal 2030 to $20 billion, excluding refinancing of existing debt. The company expects that amount to be split between $10 billion in equity and $10 billion in gross debt.
The company said this funding is in addition to a $20 billion at-the-market equity raise it completed in the first quarter of fiscal 2027.
Oracle said vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements through the transition to positive free cash flow.
The company expects its growth to be self-funded beginning in fiscal 2029. It also expects net debt to adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, to be below 3.5 times in fiscal 2029.
Oracle reaffirmed its fiscal 2027 outlook for total revenue of at least $90 billion and non-GAAP earnings per share of $8.10 per share.
Co-CEO Clay Magouryk, co-CEO Mike Sicilia and CFO Hilary Maxson presented at the event and answered questions about the strategy and medium-term guidance.
The company said its capital allocation priorities remain maintaining investment-grade credit ratings, paying a dividend and funding growth opportunities.
The Investor Day presentations and a webcast replay are available on the company's Investor Day website.