Oracle (NYSE:ORCL) set a cap at its investor day on Oct. 28. Through fiscal 2030, it would raise up to $20 billion of new money in the stock and bond markets, which it expected to split equally between shares and debt. Five days later, on Nov. 2, it raised it all.
The cloud giant sold 86.2 million new shares at $116 each, netting around $9.9 billion. A separate $10 billion of notes, in five issues maturing from 2029 to 2046, carries interest rates between 7% and 8.65%. Both deals closed on Nov. 4.
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As I write, the stock trades around $116 — about where the new shareholders bought in, and near its lowest close in the past year. And I’d say the price Oracle got matters more than the size of the deal.
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Oracle sold the stock about 11% below the $130.67 it closed at on Oct. 30, the last trading day before the deal. Shares had closed at $144.54 on investor day itself.
This gap matters because the limit was set in dollars, not shares. When I covered the cap last week, I figured $10 billion of stock at around $145 a share would mean about 69 million new shares. At $116, the same $10 billion took about 86 million — about a quarter more.
Still, using the full limit at once has an upside. Oracle’s promise spans its fiscal 2027-to-2030 investment cycle (its fiscal years end May 31), and only refinancing of existing debt sits outside it. By its own commitment, then, Oracle shouldn’t have to sell more stock or new debt in the capital markets through fiscal 2030.
This should ease worries about further share sales, which Oracle relied on heavily this year. It sold $20 billion in stock using an at-the-market program in its fiscal first quarter of 2027 (which ended Aug. 31, 2026) alone.
The notes are the pricier half
As for the dilution, the stock sale boosts Oracle’s share count by about 3%, from the 3.02 billion outstanding at the end of August to about 3.11 billion. Future profits now get spread across that many more shares.
But in cash terms, the new stock is cheap to carry. At Oracle’s $0.50 quarterly dividend, the 86.2 million new shares add around $172 million a year in payouts.
The notes cost far more. Across the five issues, the $10 billion carries about $780 million in interest per year. And that adds to an interest bill that was already rising fast.
