Oracle plans a $45–50bn capital raise in 2026 to fund cloud infrastructure expansion, splitting funding between equity and a one-off bond issuance.
Summary:
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Oracle plans to raise $45–50bn in 2026 to expand Oracle Cloud Infrastructure capacity.
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Funding will be split roughly evenly between equity and debt.
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Equity raising includes mandatory convertibles and up to $20bn via an at-the-market programme.
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Debt funding will come from a single investment-grade bond deal early in 2026.
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The plan reflects strong contracted cloud demand from major technology customers
Oracle Corporation said it plans to raise between $45 billion and $50 billion in 2026 to fund a significant expansion of its cloud infrastructure capacity, as demand from large enterprise and technology customers continues to grow.
The company said the capital raising will be structured through a balanced mix of equity and debt, with the aim of preserving its investment-grade credit profile while funding long-term growth. The proceeds will be used to build additional Oracle Cloud Infrastructure capacity to meet already-contracted demand from some of the world’s largest technology groups.
Oracle expects approximately half of the funding to come from equity-related issuance. This will include a combination of common equity and equity-linked securities, including a mandatory convertible preferred offering that will represent a relatively small portion of the overall equity raise. In addition, Oracle has authorised an at-the-market equity programme of up to $20 billion, allowing the company to issue shares gradually over time depending on market conditions and capital needs.
The remaining funding is expected to be sourced from debt markets. Oracle plans a single issuance of investment-grade senior unsecured bonds early in the 2026 calendar year. The company said it does not expect to return to the bond market again later in the year, indicating a preference for a one-off transaction rather than multiple debt deals.
Oracle said the funding strategy reflects its focus on disciplined capital allocation and balance-sheet strength as it scales its cloud business. The company has positioned Oracle Cloud Infrastructure as a core growth engine, competing more directly with other hyperscale cloud providers amid rising demand for data-intensive workloads, including artificial intelligence.
The funding plan has been approved by Oracle’s board of directors. Goldman Sachs will lead the senior unsecured bond issuance, while Citigroup will lead the equity-related transactions, including the at-the-market programme and the mandatory convertible offering.
The announcement underscores the scale of capital required to compete in global cloud infrastructure and highlights Oracle’s intention to lock in long-term capacity to support contracted customer demand through the next phase of growth.
This article was written by Eamonn Sheridan at investinglive.com.