--- title: "Here's what just sent Oracle's stock soaring" type: "News" locale: "en" url: "https://longbridge.com/en/news/303443918.md" description: "Oracle shares surged 12% after the company announced it expects positive free cash flow by May 2028, alleviating investor concerns over heavy AI spending. Oracle also projected over $30 billion in free cash flow for fiscal 2029 and committed to limiting capital market funding through 2030. Additionally, Oracle revealed it will be the first major cloud provider to offer Google's custom TPUs, enhancing hardware flexibility for customers." datetime: "2026-10-29T01:41:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/303443918.md) - [en](https://longbridge.com/en/news/303443918.md) - [zh-HK](https://longbridge.com/zh-HK/news/303443918.md) generator: "portal-rs" --- # Here's what just sent Oracle's stock soaring By Emily Bary and Britney Nguyen Oracle's new financial targets paint a rosier picture of the company's AI economics than investors had feared Oracle's stock is rising 12% on Wednesday. It's been a busy week of Oracle announcements, but one stands out most of all to investors. The company disclosed Wednesday afternoon that it expects to generate positive free cash flow during the second half of its next fiscal year. That corresponds to the six-month period ending in May 2028. The target is significant because investors have been worried about the financial implications of Oracle's (ORCL) hefty artificial-intelligence spending. Oracle has been borrowing money to finance a buildout of cloud capacity that will help it meet its contracts with OpenAI and others down the road. The new disclosure suggests that Oracle is managing its AI economics better than Wall Street feared. Free cash flow refers to the money a company has left after it covers operating costs and equipment purchases. Analysts tracked by FactSet expected Oracle to post more than $13 billion in negative free cash flow across the final two quarters of fiscal 2028. Oracle shares are popping 12% in Wednesday trading following the new forecast, which was made in conjunction with the company's investor day. The surge puts Oracle's stock on track for its biggest once-day gain since April. The company gave other targets as well, including a projection for upwards of $30 billion in free cash flow during the fiscal year that ends in May 2029. Only a couple analysts forecast metrics that far out, but their average projection had been for negative free cash flow during that period. Oracle further announced that it was "committed to limiting additional funding to be raised in the capital markets" through fiscal 2030, which ends in May of that year. The company has a $20 billion financing target across that period, split evenly between debt and stock offerings. The forecast excludes the $20 billion raised through an equity offering earlier this year. "Vendor financing, customer-provided hardware and customer prepayments are expected to reduce upfront cash requirements through the transition to positive free cash flow," Oracle said in a release. The financial announcements follow more product-related news from earlier in the week. Oracle said Tuesday that it will be the first major cloud provider to offer Google's custom chips - besides Google itself. Google has been working on its tensor processing units for more than a decade and uses them to run things from its search-engine algorithms to its Gemini AI models. Offering Google's TPUs will give customers more flexibility on which hardware works best with their AI workloads, Oracle said. The hardware offers scalability and improved economics - a major focus for companies that are looking to keep costs in check for computing power. Oracle said it will support TPU deployments with power, cooling and networking. Google's custom silicon will be available next year, Oracle said, and deployments will ramp up over several years. -Emily Bary -Britney Nguyen This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. ### Related Stocks - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [ORAC.US](https://longbridge.com/en/quote/ORAC.US.md) - [ORCS.US](https://longbridge.com/en/quote/ORCS.US.md) - [ORCU.US](https://longbridge.com/en/quote/ORCU.US.md) - [ORCX.US](https://longbridge.com/en/quote/ORCX.US.md) - [ORCZ.US](https://longbridge.com/en/quote/ORCZ.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) ## Related News & Research - [Oracle Announces $1 Billion Investment to Accelerate Partner Growth and AI-Driven Modernization for Customers | ORCL Stock News](https://longbridge.com/en/news/302875513.md) - [Oracle Advances Enterprise Security for the AI Era | ORCL Stock News](https://longbridge.com/en/news/303262545.md) - [Oracle Introduces Claw-Powered Fusion Agentic Applications for Customer Experience | ORCL Stock News](https://longbridge.com/en/news/303080626.md) - [Oracle Unveils New Cloud Networking Innovations for AI | ORCL Stock News](https://longbridge.com/en/news/303261879.md) - [Oracle Expands AI Software Offerings Ahead of Investor Day](https://longbridge.com/en/news/303115104.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**