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Offices of cloud service provider Oracle in Dublin, Ireland, in October, 2021.Tom Bergin/Reuters
Oracle ORCL-X expects free cash flow to turn positive in the second half of fiscal 2028 and exceed US$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 per cent 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 US$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 US$225-billion, an adjusted operating margin above 40 per cent and adjusted earnings of more than US$21 per share. It reaffirmed its fiscal 2027 forecast of more than US$90-billion in revenue and adjusted earnings of US$8.10 per share.