New York, Feb 3, 2026, 10:52 EST — Regular session
- Oracle shares dropped roughly 3% in early trading following plans for a capital raise linked to AI data center investments
- The company aims to raise $45–$50 billion by 2026, combining debt issuance with equity-linked and common stock sales
- Investors await the final pricing details and the upcoming earnings report set for early March
Oracle shares dropped roughly 3% on Tuesday, marking another volatile session for the software giant as it unveiled plans to raise up to $50 billion to fuel an AI-driven cloud expansion. Microsoft remained mostly flat, while Amazon saw a slight uptick.
The company plans to raise $45 billion to $50 billion in gross cash proceeds during calendar 2026 to boost Oracle Cloud Infrastructure capacity, meeting contracted demand from major clients like AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI. It intends to split the funding almost evenly between debt and equity, with Goldman Sachs leading the bond issuance and Citigroup handling the equity portion.
This stands out as a rare, sizable issuance of both debt and new equity from a company more often associated with stock buybacks and growth fueled by cash flow. It thrusts Oracle into direct competition with cloud giants like Alphabet, Microsoft, and Amazon, each pouring money into expanding AI computing power.
On Monday, Oracle filed a prospectus supplement revealing plans for an eight-part notes offering. This includes floating-rate notes linked to compounded SOFR — a short-term rate based on overnight Treasury-backed lending — alongside fixed-rate notes maturing as far out as 2066. The filing also listed Oracle’s consolidated liabilities at roughly $174.5 billion as of Nov. 30, 2025, with $108.1 billion of that in senior unsecured borrowings.
Oracle has filed for an “at-the-market” equity offering program, allowing it to sell up to $20 billion of shares directly into the open market. The company will price sales based on market conditions and its funding requirements. CloudFront
Another filing revealed plans to issue 100 million depositary shares linked to Series D mandatory convertible preferred stock. This equity-linked instrument converts into common shares later, easing near-term cash flow but potentially diluting shareholders down the line. The depositary shares have a $50 liquidation preference and are slated to trade on the New York Stock Exchange under the ticker ORCL-PRD, according to the prospectus.
The bond market is putting the narrative to the test. According to the Financial Times, Oracle wrapped up a $25 billion bond deal across eight tranches, attracting strong investor interest despite concerns over the company’s growing debt.
Oracle rolled out fresh product updates Tuesday, unveiling a new “agentic” platform through Oracle Financial Services. Designed for banks, the platform features pre-built AI agents targeting automation in retail banking workflows. “AI moves beyond task automation,” said Sovan Shatpathy. PR Newswire
But the funding plan isn’t without clear risks. Oracle flagged that results might fluctuate depending on when customers make purchases and whether they can meet payment commitments. Delays or issues in expanding data centers could also hit hard, potentially leading to big expenses without matching revenue.
Investors are waiting on final pricing for both the debt and equity-linked offerings, closely monitoring any shifts in cloud demand as AI spending adjusts. Oracle’s next earnings report is penciled in for March 9, per MarketBeat, though the company hasn’t officially confirmed the date.
