Oracle slides on $20 bln AI fundraising

Bank of America

02/11/2026 15:02

Updates, recasts
** Shares of cloud computing firm Oracle's ORCL.N slide 6.2% to $122.61, a more than 3-month low, in early trading on Mon as it looks to raise capital to finance AI expansion
** Per SEC filings, ORCL to sell $10 bln in stock and offer $10 bln of bonds 
** Co to use net proceeds from concurrent offerings for general corp purposes, including capex, debt paydown, acquisitions, cash dividends and share repurchases
** Last week, ORCL said it anticipates capital spending to peak this fiscal year and next, and pledged to raise no more than $20 bln in additional AI financing through fiscal 2030
** As of Aug 31, ORCL had $125.34 bln in notes payable and other borrowings; investors have scrutinized its AI spending given its smaller revenue scale than cloud rivals and significant exposure to loss-making OpenAI
** BofA is global coordinator and joint bookrunner on the equity offering, joined by Wells Fargo, Citigroup, BNP Paribas, Deutsche Bank and JP Morgan, among others
** With the decline, ORCL stock down 37% YTD
** Of 41 analysts, recommendation breakdown is 34 "strong buy" or "buy", 6 "hold" and 1 "sell"; median PT $240, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com))