Oracle's stock falls as the company details plan to raise $20 billion

By Emily Bary

Oracle has been borrowing money and issuing stock to help finance its AI cloud growth

Oracle's stock is set to fall on Monday.

Oracle is raising more money to finance its artificial-intelligence cloud buildout.

The technology giant announced Monday that it plans a $10 billion stock offering. Oracle (ORCL) will also conduct a $10 billion debt offering.

The company noted in a filing that the proceeds will go toward "general corporate purposes," including capital expenditures, debt repayments or future investments. Capital expenditures refer to money spent on data-center infrastructure, equipment and other related assets.

Oracle shares are down 4% in premarket action on Monday.

Last week, Oracle's management team seemingly calmed Wall Street's nerves with its discussion of the financing that could be expected in the future. In short, the company said it was "committed to limiting additional funding to be raised in the capital markets" through the fiscal year ending in May 2030. The company was targeting $20 billion in financing for that stretch.

That's the aggregate amount of the offerings announced on Monday.

Oracle has been borrowing money to finance its buildout of cloud-computing capacity as it chases big opportunities with OpenAI and other AI players.

Shares of Oracle have fallen 61% from their peak close in September 2025, a reflection of jitters over the company's ability to generate appropriate returns on its AI investments and pay off its debt. The company painted a better-than-expected picture of its financial prospects during last week's investor day, noting a target for positive free cash flow during the second half of the fiscal year that ends next May.

Analysts were expecting negative free cash flow for that period, meaning they anticipated the company would spend more on capital expenditures and operating costs than it would generate in cash through its business.

-Emily Bary

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11-02-26 0903ET