Oracle plans to raise $45-50 billion in 2026 to expand cloud business

Oracle Corporation (NYSE: ORCL) announced plans to raise $45 billion to $50 billion in gross cash proceeds during calendar year 2026 to fund expansion of its Oracle Cloud Infrastructure business. The company said the funding will build additional capacity to meet contracted demand from customers including AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI.

The technology company plans to use a combination of debt and equity financing to maintain its investment-grade balance sheet. Oracle intends to raise approximately half of its 2026 funding through equity-linked and common equity issuances, including mandatory convertible preferred securities and a newly authorized at-the-market equity program of up to $20 billion.

For debt financing, Oracle plans to complete a single issuance of investment-grade senior unsecured bonds early in 2026 to cover the remaining half of its planned funding. The company stated it does not expect to issue additional bonds during calendar year 2026 beyond this transaction.

The Oracle Board of Directors has approved these transactions. Goldman Sachs & Co. LLC will lead the senior unsecured bond offering, while Citigroup will lead the at-the-market issuance and mandatory convertible preferred equity offering.

Oracle stated the funding plan reflects its commitment to maintaining an investment-grade rating and balance sheet strength as it continues expanding its cloud infrastructure business. The company plans to issue equity from the at-the-market program over time based on market conditions and capital needs.

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