Oracle Shares Jump 10.7% After Long-Term Forecast Shows Free Cash Flow Turning Positive in Fiscal 2028

Oracle shares rose 10.7% to $144.54 on Wednesday, their biggest gain since May 29, after the company's investor day in Las Vegas projected free cash flow turning positive in the second half of fiscal 2028, easing concerns over AI infrastructure spending. The stock had fallen about a third this year. CFO Hilary Maxson said free cash flow should reach $30 billion by fiscal 2029, when capital expenditures begin declining from peak levels in fiscal 2027 and 2028. Investors had expected negative free cash flow through fiscal 2029. Oracle reported negative free cash flow of $23.7 billion last fiscal year, making it the first major tech company to turn negative on data-center spending. The company capped additional funding needs at $20 billion through May 2030, split evenly between equity and debt. Oracle carries $117 billion in long-term debt and holds a BBB- investment-grade rating. Its five-year credit default swap spread narrowed slightly to 287.2 basis points. For fiscal 2030, Oracle forecast revenue of at least $225 billion, an adjusted operating margin above 40% and adjusted EPS above $21. It reiterated fiscal 2027 guidance of over $90 billion in revenue and $8.10 adjusted EPS. CoreWeave, Nebius, Applied Digital and Iren gained 2.1% to 5%.