Oracle expects to complete the $5 billion mandatory convertible preferred securities offering on February 5, 2026.
This offering is part of Oracle’s broader plan to raise $45 billion to $50 billion during the 2026 calendar year. The company will use a combination of debt and equity financing.
Oracle intends to use the capital raise to fund the expansion of its Cloud Infrastructure (OCI). This expansion aims to meet surging demand from major AI clients.
The large-scale financing announcement drew a mixed market reaction. Analysts expressed caution regarding the substantial, multi-year capital expenditure required for the build-out.
The stock is currently termed a "battleground" stock. Headlines surrounding its financing strategy and its role in supplying infrastructure for major AI companies significantly influence its price.