Oracle Plans $20 Billion Stock and Bond Sale to Fund AI Buildout

Oracle plans to raise $20 billion through bond and share sales, regulatory filings showed on Monday, November 2, 2026. The plan splits the raise evenly, with $10 billion in common stock and $10 billion in senior notes, Reuters reported. The money is meant to fund the company's AI buildout and other corporate needs.

Investors sold the stock on the news. Oracle shares fell nearly 5 percent in early trading, with some reports putting the drop at 5 to 6 percent. The fall extended a decline of about 33 percent in the shares this year through Friday, October 30.

How the raise is split

The bond side of the deal is built from six tranches of senior notes maturing between 2029 and 2046. One tranche carries a floating interest rate and five carry fixed rates. The key terms are not final yet. Interest rates, prices and the number of new shares have not been set, the filings showed.

One figure in the filing gives a sense of the share sale's size. At the preliminary prospectus price of $130.67, which was the closing price on October 30, the $10 billion stock sale would amount to about 76.5 million new shares. Final pricing could change that count.

What the money is for

Oracle said it would use the proceeds for general corporate purposes. The list in the filing includes capital spending, debt repayment, acquisitions, dividends and share buybacks. Capital spending sits at the center of the story, because the raise is tied to the company's AI buildout.

The new money would land on top of a large debt load. Oracle had $125.34 billion in notes payable and other borrowings as of August 31. That compares with fiscal 2026 revenue of $67.36 billion, so the borrowings already on the books are far larger than one year of revenue.

A plan that matches last week's pledge

The size of the raise matches a pledge Oracle made last week. The company said then that capital spending would peak this fiscal year and the next, and it pledged to raise no more than $20 billion in additional financing for AI through fiscal 2030. It also forecast revenue of more than $225 billion for fiscal 2030.

Chief financial officer Hilary Maxson said free cash flow should turn positive in the second half of fiscal 2028. Shares rallied about 11 percent on Wednesday after that guidance, as investors weighed the spending peak and the funding cap against the long-term revenue target.

Monday's reaction ran the other way. A stock sale of this size adds new shares, and a bond sale of this size adds to the borrowings the company already carries. With pricing still unset, the filings leave traders to judge the plan on its scale alone: $20 billion of new money, half in shares and half in notes, for a buildout the company says will peak in spending terms within the next two fiscal years.