New York, February 2, 2026, 18:30 EST — After-hours
Oracle (ORCL) shares dropped 2.7% to $160.06 in after-hours trading Monday following the company’s announcement of plans to raise $45 billion to $50 billion in 2026 aimed at rapidly expanding its cloud data centers. During the session, the stock fluctuated between $155.90 and $175.62. The funding will come from a mix of equity and a one-time senior unsecured bond issuance, with Goldman Sachs leading the bond deal and Citigroup managing the equity offerings. (Oracle)
Oracle’s fundraising plan comes at a sensitive time, with investors watching closely how the company backs a spike in spending driven by AI demand and large cloud clients like OpenAI. Back in January, bondholders sued Oracle, accusing it of hiding the need for a major debt raise. Meanwhile, the cost to insure its debt against default via credit-default swaps jumped sharply in December. (Reuters)
Oracle has filed a prospectus with the U.S. Securities and Exchange Commission indicating it could sell up to $20 billion in common stock through an at-the-market offering. This allows the company to introduce shares gradually rather than all at once. The filing names BofA Securities, Deutsche Bank Securities, and J.P. Morgan Securities as sales agents. Based on the closing price on Jan. 30 used in the document, that translates to roughly 121.5 million shares. (SEC)
Another filing revealed Oracle plans to issue 100 million depositary shares linked to Series D mandatory convertible preferred stock. These depositary shares represent a portion of preferred stock, and “mandatory convertible” indicates they will convert into common shares by 2029, potentially diluting current shareholders. (SEC)
Some analysts noted that blending equity and debt buys Oracle more time with lenders, even if it doesn’t alter the overall spending scale. Guggenheim analysts said Oracle is “sending a clear message to bond investors and the rating agencies.” Barclays suggested the equity-heavy approach might ease pressure on debt markets by lowering borrowing needs. Russ Mould, investment director at AJ Bell, pointed out Oracle’s fate is now “heavily tied to OpenAI.” Jefferies cautioned the spending spree could weigh on margins for years. (Reuters)
Oracle has lagged behind the major cloud giants for years but is now ramping up investment to win over workloads that typically went to Microsoft, Alphabet, and Amazon. To fuel this effort, it’s tapping new equity and equity-linked securities, which has made its stock vulnerable to swings tied to AI spending sentiment. (Investopedia)
For shareholders, the key issue is speed: how fast Oracle moves through the $20 billion share program and just how big the preferred conversion will be once final terms are set.
The strategy hinges on continued strong demand and a few major customers sticking with their contracted capacity. If growth slows or data center launches get pushed back, Oracle could end up with heavier debt burdens and idle equipment.
Bond spreads and what rating agencies say might soon shift the stock just as much as cloud bookings do.
Traders are eyeing the upcoming prospectus updates for signs, especially around pricing for the mandatory convertible preferred and timing for the senior unsecured bond offering. Tuesday’s session will offer the first full opportunity to assess the dilution impact following the filings.
Oracle is set to report its next quarterly results on March 9, per the Yahoo Finance earnings calendar. Investors will be watching closely for updates on cash flow, capital expenditures, and the extent to which its cloud expansion is already locked in. (Yahoo)
