Summary: Oracle (NYSE:ORCL) said it will pursue $45-50 billion in funding during calendar year 2026 to accelerate build-out of its Oracle Cloud Infrastructure. Jefferies maintained a Buy rating and a $400 price objective. The company plans a balanced mix of equity and debt to close the gap between forecasted capex and existing liquidity, and to directly fund capacity tied to contracted hyperscale customers.
Oracle's shares are trading at $164.58 and have undergone substantial volatility, with the stock down nearly 32% over the past six months. The company reported trailing revenue of $61.02 billion, representing an 11.07% growth rate. Market capitalization stands at $472.86 billion, and the firm's reported price-to-earnings ratio is 30.72.
The funding plan and capital structure
Oracle described the 2026 funding initiative as a way to accelerate OCI capacity to meet contracted demand. The company is targeting a 50/50 split between equity and debt. The equity component will include equity-linked and common equity issuances and a new $20 billion at-the-market equity program. The debt portion is planned as a single issuance of investment-grade unsecured bonds to be completed early in 2026.
Oracle reported current liquidity of about $45 billion, comprising roughly $20 billion in cash and an expected $25 billion in operating cash flow. That liquidity is intended to help cover part of the projected fiscal year 2026 capital expenditures, which the company estimates will exceed $50 billion. Oracle signaled it does not anticipate issuing additional bonds during 2026, citing a desire to preserve its investment-grade standing. The company’s debt-to-equity ratio was reported at 4.4.
How the proceeds will be used
Proceeds from the program are earmarked to add capacity supporting contracted growth for hyperscale customers. The list of named customers includes AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI. Jefferies emphasized that tying capital directly to contracted demand reduces execution risk for OCI expansion even if the funding plan creates near-term dilution and potential margin pressure that could weigh on earnings per share.
Jefferies’ reiteration of a Buy rating and its $400 price target reflect the firm’s view that the funding construct helps de-risk OCI growth. Analyst targets reported in coverage span a range from $155 to $400. Some analysts' valuation work suggests the shares may be trading below a Fair Value assessment, using current public metrics.
Related business developments
Oracle has recently won an $88 million contract to provide cloud services for the U.S. Air Force’s Cloud One program, as announced by the U.S. Department of War. The company also introduced a Life Sciences AI Data Platform designed to combine AI capabilities with healthcare and customer data to support pharmaceutical and life sciences organizations in areas such as research, clinical trials, and commercialization.
In the hospitality sector, IHG Hotels & Resorts approved Oracle’s OPERA Cloud as a property management system for its global properties. Separately, reports indicated that Blackstone is considering increasing its financial commitment to Oracle’s Michigan data-center project through a potential debt investment. Bank of America is reported to be leading efforts to raise $14 billion in debt for the same project.
Analytical context and investor considerations
The funding plan is intended to address investor and market questions about Oracle’s ability to finance an aggressive infrastructure build-out supporting AI and hyperscale workloads. Jefferies pointed out that while executing the funding program could introduce short-term dilution and margin headwinds, the approach aligns capital directly with contracted demand and aims to reduce the funding-related execution risk that had previously concerned some market participants.
Investors tracking liquidity, capex execution, and the company’s ability to maintain its investment-grade credit profile will likely view the mix of equity and a single bond issuance as central to Oracle’s near-term financial strategy. Reported figures for liquidity, projected capex, and the announced program parameters will be key inputs for assessing cash-flow durability and balance-sheet risk as the build-out progresses.
Bottom line
Oracle's $45-50 billion program for 2026 represents a concerted effort to fund OCI capacity expansion while attempting to preserve the company’s credit rating. Jefferies’ Buy rating and $400 target reflect a view that the funding plan reduces execution risk, despite the possibility of short-term dilution and margin pressure. Additional contract wins and product launches underscore Oracle’s push across cloud, defense, life sciences, and hospitality verticals.