Oracle outlines plan to raise $50 billion in debt and equity for 2026

Oracle Corporation has unveiled its strategic plan to secure between $45 billion and $50 billion (around Rs 4.585 lakh crores) in 2026. This significant capital infusion aims to dramatically enhance the company's cloud infrastructure to accommodate the increasing demands from leading clients in artificial intelligence (AI) and technology sectors, according to reports from Reuters. Under the guidance of billionaire chairman Larry Ellison, Oracle revealed on February 1 that it intends to achieve this funding through a careful blend of debt and equity. Approximately 50% of the total is expected to come from common equity and equity-linked issuances, which will include a new $20 billion "at-the-market" equity program alongside mandatory convertible preferred securities. The other half will be raised through a one-time issuance of investment-grade senior unsecured bonds planned for early 2026. Oracle has stated that it does not foresee any further debt issuance for the rest of that year. The bond sale will be spearheaded by Goldman Sachs, while Citigroup will oversee the equity programs. In its announcement, Oracle emphasized that this capital raise is crucial for expanding its Oracle Cloud Infrastructure (OCI), driven by "contracted demand" from a prestigious lineup of clients, such as NVIDIA, OpenAI, Meta, AMD, xAI, and TikTok. This bold expansion strategy comes at a time of intensified scrutiny regarding Oracle’s financial health. The company is currently facing a lawsuit from bondholders who claim that it failed to disclose the full extent of the debt needed for its AI infrastructure. Additionally, the cost of insuring Oracle’s debt reached a five-year peak in December 2025. Nevertheless, Oracle is steadfast in its commitment to progress with its expansion plans to support large-scale, compute-intensive projects, including its extensive multi-year partnership with OpenAI.