Oracle stock pops on forecast for 35% average growth through 2030

Oracle shares jumped on Wednesday after the software company issued a revenue forecast of $225 billion for fiscal 2030, implying 35% average annual growth, and said it will limit additional fundraising over that stretch to $20 billion.

Analysts polled by LSEG expected growth of 8% in fiscal 2027, followed by significant acceleration over the next two years. They’re projecting revenue in fiscal 2030 of $224.2 billion.

Oracle said, as part of its commitment to limit additional funding for fiscal 2027 through 2030, that the amount will be divided equally between equity and debt.

“Vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements through the transition to positive free cash flow,” Oracle said in a filing with the Securities and Exchange Commission.

Prior to Wednesday, Oracle had lost about one-third of its value this year on concern that rising interest rates and the company’s hefty debt load will make its artificial intelligence buildout too costly. Oracle has issued $117 billion in long-term debt and is clinging to an investment-grade credit rating of BBB-, the lowest level of investment grade above junk, according to S&P.

—CNBC’s Michelle Fox contributed to this report.

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