AUSTIN – October 29, 2026 -- Oracle set a fiscal 2030 target of $225 billion or more in total revenue, a compound annual growth rate above 35% from FY26, and committed to limiting new capital market funding to $20 billion through FY30. Co-CEOs Clay Magouryk and Mike Sicilia and CFO Hilary Maxson presented the updated medium-term guidance at the company's Investor Day in Las Vegas.
Oracle targets 40% non-GAAP operating margin and $21 EPS in FY30
Beyond the revenue goal, Oracle guided to a non-GAAP operating margin of 40% or higher and non-GAAP earnings per share of $21 or more in FY30. The company said each of its three business models, cloud infrastructure, database and applications, is expected to generate strong profitability and free cash flow.
Free cash flow turns positive in the second half of FY28
Oracle expects positive free cash flow in the second half of FY28 and at least $30 billion in FY29. Capital expenditures are projected to peak in FY27-FY28 and step down in FY29.
Growth will be self-funded beginning in FY29, the company said. Net debt to adjusted EBITDA is expected to fall below 3.5 times that year.
Oracle's net debt definition includes borrowings, vendor financing, and operating and finance lease liabilities, less cash and marketable securities. Adjusted EBITDA is based on reported non-GAAP results, with depreciation and operating lease expense added back.
Oracle splits $20 billion funding cap evenly between equity and debt
For the FY27-FY30 investment cycle, additional capital raises are currently expected to total $10 billion in equity and $10 billion in gross debt. The cap excludes refinancing of existing debt.
The figure comes on top of the $20 billion at-the-market equity raise Oracle completed in the first quarter of fiscal 2027.
Vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements until free cash flow turns positive.
Oracle reaffirms FY27 outlook of $90 billion revenue and $8.10 EPS
The company reaffirmed its fiscal 2027 outlook for total revenue of at least $90 billion and non-GAAP EPS of $8.10. Its capital allocation priorities are unchanged: maintaining investment-grade credit ratings, paying a dividend and funding growth opportunities.
Oracle named risks to the plan including its ability to secure and manage datacenter capacity, the sourcing of components such as graphic processing units, and the performance of its AI products.