Updated Version 1 - Oracle expects to achieve positive cash flow in the second half of fiscal year 2028

Supplemented with details and background information

Reuters, October 28 - Oracle Corporation (ORCL.N) Chief Financial Officer Hilary Maxson stated that as capital expenditures decrease, the company expects its free cash flow to turn positive in the second half of fiscal year 2028 and exceed $30 billion in fiscal 2029, offering some relief to investors concerned about the company's massive AI spending.

The company’s share price has fallen by about one-third so far this year, but surged more than 8% in afternoon trading on Wednesday.

At the cloud and database company’s investor day event, Maxson noted that Oracle will begin funding its business growth with internal resources starting in fiscal 2029 and will keep additional financing below $20 billion before fiscal 2030.

Because Oracle lacks the robust revenue base of cloud giants like Microsoft and Amazon and relies heavily on a single client—OpenAI, the developer of ChatGPT, which is still generating losses—it has become a central concern for investors worried about soaring AI infrastructure costs.

For fiscal 2030, the company forecasts revenue will exceed $225 billion, an adjusted operating profit margin above 40%, and adjusted earnings per share greater than $21. The company reaffirmed its fiscal 2027 forecast of revenue above $90 billion and adjusted earnings per share of $8.10.

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