Oct 28 (Reuters) – Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029 as capital spending declines, CFO Hilary Maxson said, offering some relief to investors concerned about its hefty AI outlays.
Shares of the company, down by around a third so far this year, jumped more than 8% in afternoon trading on Wednesday.
Speaking at the cloud and database company’s investor day, Maxson said Oracle would begin self-funding its growth in fiscal 2029 and would limit additional capital raises to $20 billion through fiscal 2030.
Oracle has become a focal point of investor worries about the soaring cost of AI infrastructure because it lacks the deep revenue base of cloud giants such as Microsoft and Amazon and relies heavily on a single customer, loss-making ChatGPT maker OpenAI.
For fiscal 2030, the company forecast revenue of more than $225 billion, an adjusted operating margin above 40% and adjusted earnings of more than $21 per share. It reaffirmed its fiscal 2027 forecast of more than $90 billion in revenue and adjusted earnings of $8.10 per share.
(Reporting by Deborah Sophia in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
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