Markets & the AI economyNote

Oracle sold US$20bn of shares and notes five days after setting US$20bn as its cap

The terms Oracle priced on 2 November: 86.2 million shares at US$116 and US$10bn of notes at 7.000% to 8.650%, against its February bonds, its 28 October cap and its debt.

Illustration: The TechBag Journal

Oracle sold 86,206,897 new shares at US$116.00 and US$10bn of notes maturing from 2029 to 2046 at coupons of 7.000% to 8.650%, both priced on 2 November and due to close on 4 November; together they raise about US$19.9bn after costs.12 Five days earlier, at its investor day, Oracle had “committed to limiting additional capital raises through FY30 to $20 billion, excluding refinancing of existing debt, split between $10 billion in equity and $10 billion in gross debt”.5 Its shares closed 8.8% lower on 2 November, at US$119.22; the offer price is 2.7% below that close and 11.2% below the US$130.67 of 30 October that the prospectus cites.310

01February's plan had one bond sale for the year

On 1 February Oracle said it expected to raise US$45bn to US$50bn in calendar 2026, about half in equity and the other half from “a single, one-time issuance” of investment-grade bonds, adding: “Oracle does not expect to issue additional bonds during calendar year 2026 beyond this transaction.”6 That sale, priced the next day, was US$25bn in eight parts at 4.550% to 6.850%, beside US$5bn of 6.50% mandatory convertible preferred shares.78 A US$20bn at-the-market share sale was completed in the quarter to 31 August.5

For the same maturities, Oracle now pays 2.1 to 2.5 percentage points more than in February

Yield to maturity at pricing, %, Oracle senior notes priced on 2 February and 2 November 2026

  • Priced 2 February
  • Priced 2 November
Notes due 20297.06%+2.5 ptsNotes due 20317.46%+2.5 ptsNotes due 20337.85%+2.5 ptsNotes due 20468.67%+2.1 pts
Show tableHide table
Priced 2 FebruaryPriced 2 NovemberChange
Notes due 20294.67.062.5 pts
Notes due 20314.997.462.5 pts
Notes due 20335.357.852.5 pts
Notes due 20466.568.672.1 pts

Source: Oracle final pricing term sheets (FWP), 2 February and 2 November 2026 · as of 2 November 2026 · February's 2029 and 2031 notes mature in February and its 2033 notes in May; November's all mature in November

Most of the rise is Oracle’s spread over US Treasuries: on the 2029 notes it went from 0.95 to 2.40 percentage points, on the 2046 notes from 1.70 to 3.35. The term sheets give the same Moody’s rating both times, Baa2 with a negative outlook; S&P moves from BBB (negative) in February to BBB- (stable) now, one notch lower; Fitch stays at BBB (stable).27

02What Oracle owes: one number, two labels

The share prospectus says Oracle had, at 31 August, “approximately $236.1 billion in aggregate principal amount of consolidated indebtedness”, could borrow US$19.7bn more under its credit line and commercial paper, and expects “additional borrowings or other liabilities under vendor financing, leases and other financing arrangements”.3 The notes prospectus, filed the same morning, calls the same US$236.1bn “total liabilities”, and its capitalisation table puts total debt at US$125.3bn.4

Operating cash flow was US$32.0bn in the year to 31 May against US$55.7bn of capital spending, and US$23.1bn against US$28.5bn in the quarter to 31 August.9 Oracle forecasts positive free cash flow from the second half of fiscal 2028, and says vendor financing, customer-provided hardware and customer prepayments will reduce its upfront cash needs.5

03What is new, and what to watch

Our 1 November piece followed how Microsoft, Alphabet, Amazon and Meta pay for AI capacity with bonds and share sales. Oracle now does both on one day, at a discount: the 86.2 million new shares are about 2.9% of the 3.02 billion outstanding on 31 August, by our arithmetic.3 Its February plan named the customers it is building for: “AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others”.6

What to watch: settlement on 4 November; Oracle has agreed not to sell more shares for 60 days without the lead underwriter’s consent; and the 10-Q for the quarter to 30 November, which will show the proceeds.13

Sources

  1. Oracle, Oracle announces pricing of $20 billion of common stock and senior notes (PR Newswire) — 2 November 2026 22:09 New York time.
  2. Oracle, final pricing term sheet for five series of notes (FWP) — 2 November 2026
  3. Oracle, preliminary prospectus supplement for US$10bn of common stock (424B5) — 2 November 2026
  4. Oracle, preliminary prospectus supplement for US$10bn of senior notes (424B2), Ranking and Capitalization — 2 November 2026
  5. Oracle, Oracle Investor Day 2026: Accelerating Value Creation (8-K, Exhibit 99.1) — 28 October 2026
  6. Oracle, calendar 2026 funding plan (release filed under Rule 163) — 1 February 2026
  7. Oracle, final pricing term sheet for eight series of notes (FWP) — 2 February 2026
  8. Oracle, pricing term sheet for depositary shares in 6.50% Series D Mandatory Convertible Preferred Stock (FWP) — 2 February 2026
  9. Oracle, Form 10-Q for the quarter ended 31 August 2026 and Form 10-K for the year ended 31 May 2026 (SEC EDGAR XBRL company facts) — 11 September 2026 10-K filed 22 June 2026; sums are TechBag's arithmetic.
  10. Nasdaq.com, historical prices for ORCL — closes of 30 October and 2 November 2026

Related on TechBag: how Big Tech pays for AI spending, cloud growth by quarter and what a falling share price changes at renewal.

Disclosure. TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.