Oracle to raise up to $50bn to fund cloud infrastructure expansion

(Sharecast News) - Oracle shares fell in pre-market trade on Monday after it said it was looking to raise between $45bn and $50bn to fund the expansion of its Cloud Infrastructure business. In a statement on Sunday, the company said it was raising the money to build additional capacity to meet the contracted demand from its largest cloud infrastructure customers, including AMD, Meta, Nvidia, OpenAI, TikTok, xAI and others.

Oracle said it will use a combination of debt and equity financing "to maintain a solid investment-grade balance sheet".

The company plans to raise about half of its 2026 funding through a combination of equity-linked and common equity issuances. This is expected to include an initial issuance of mandatory convertible preferred securities, representing a modest portion of the overall equity funding, as well as a newly authorised at-the-market equity program of up to $20bn.

In addition, Oracle plans to complete a single, one-time issuance of investment-grade senior unsecured bonds early in 2026 to cover the other half of the planned funding for the year.

"This funding plan reflects Oracle's commitment to maintaining an investment-grade rating, prudent capital allocation, balance sheet strength, and transparency with investors as the company continues to expand its Oracle Cloud Infrastructure business," it said.

At 1040 GMT, the shares were down 3.9% in pre-market trade at $158.29.