Oracle's Capital Plan Clarity Supports Long-Term Targets, RBC Says

MT Newswires Live10-30

Oracle's (ORCL) long-term fiscal 2030 targets are supported by greater clarity on its capital financing strategy, including vendor financing, bring-your-own-hardware arrangements, and customer prepayments that reduce upfront cash requirements by about 50%, RBC Capital Markets said in a Thursday research report

Management committed to limiting incremental capital raises to $20 billion through fiscal 2030, split evenly between equity and debt, and expects to self-fund growth investments beginning in fiscal 2029.

Channel checks indicate an improvement in enterprise resource planning win rates in vertical solutions, particularly financial services, where Oracle maintains a strong position and is gaining share against Workday, according to the note.

Management sees on-premises-to-cloud migrations, cross-sell opportunities, AI consumption, and embedded finance as growth drivers for the company's applications business. RBC viewed the event as incrementally positive but not thesis-changing.

RBC reiterated its sector perform rating and $165 price target on the stock.

Shares of Oracle were down 3.2% in Thursday afternoon trading.

Price: 139.84, Change: -4.70, Percent Change: -3.25

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