Oracle Just Capped How Much New Money It Will Raise. I'd Consider Buying a Small Stake in the Stock.

Oracle announced a cap of $20 billion in new capital raising through fiscal 2030 ($10 billion in stock, $10 billion in debt), a significant shift from raising $48 billion in fiscal 2026 alone. The company reiterated its $225 billion revenue target for fiscal 2030 and $21 per share in adjusted earnings. Management expects capital spending to peak in fiscal 2027-2028, with free cash flow turning positive in late fiscal 2028 and reaching $30 billion+ in fiscal 2029. The analyst views the funding cap as more meaningful than the revenue target, as it limits shareholder dilution and debt accumulation, and considers the stock fairly valued at 18x current earnings as a small stake buy.