Oracle shares slide after company launches $10 billion stock sale and $10 billion bond sale

Oracle shares fall as financing plan takes effect

Oracle shares fell about 6% on Monday after the company launched a $10 billion common-stock offering and a separate $10 billion bond sale. The stock was trading at $123.17 at 10:16 a.m. Eastern time, down 5.7% from Friday’s $130.67 close, according to real-time Nasdaq data. The timing of the decline coincided with the filings, but the reviewed reporting did not establish a definitive cause beyond the financing and investor concerns surrounding Oracle’s AI spending.

The share-price decline extended a broader selloff. Oracle had fallen roughly 33% through Friday, while one market review reported that the shares had dropped about 15% from Wednesday’s close after an investor day. Those figures cover different periods and are not directly comparable. The $20 billion financing matched the amount Oracle said the week earlier it would limit additional capital raising to through fiscal 2030, excluding refinancing of existing debt.

Two independent offerings cover the financing limit

Oracle filed for $10 billion of bonds and $10 billion of common stock on Monday. The offerings are separate and do not depend on each other to close. The bond filing contemplated six groups of notes maturing between 2029 and 2046, while interest rates, prices and fees had not yet been finalized. The stock offering also remained preliminary, with its final share count dependent on the offering price.

The preliminary prospectus illustrates the equity sale at Friday’s closing price of $130.67. At that level, $10 billion would buy approximately 76.5 million shares, increasing Oracle’s share count from about 3.02 billion to about 3.10 billion. That would represent roughly 2.5% dilution at the assumed price. Because the shares were lower on Monday, the final number of shares could be higher if the offering price remained below $130.67.

Oracle said proceeds could be used for general corporate purposes, including capital expenditures and repayment of indebtedness, as well as possible investments, acquisitions, dividends and share buybacks. The stock prospectus warned that new sales could dilute existing common shareholders’ ownership interests.

Financing comes amid heavy AI investment

Oracle said it is using the proceeds in part to fund data-center capacity for AI and cloud customers. The company reported $125.34 billion of notes payable and other borrowings as of August 31, compared with fiscal 2026 revenue of $67.36 billion.

The financing follows Oracle’s disclosure that capital spending would peak in fiscal 2027 and fiscal 2028 before declining in fiscal 2029. The company expects free cash flow to turn positive in the second half of fiscal 2028 and expects $30 billion or more in free cash flow in fiscal 2029, when it says growth will become self-funded. These are company targets rather than reported results. Oracle also aims for more than $225 billion of total revenue in fiscal 2030 and for net debt below 3.5 times adjusted EBITDA in fiscal 2029.

The next milestone is pricing and completion

The immediate verification points are the final pricing of both offerings and whether each closes. The equity filing must establish the offering price and resulting share count, while the bond filing must determine rates, prices and fees for the six tranches. Neither offering had closed as of the knowledge snapshot.