Oracle files to sell $20 billion in new stock, bonds to finance AI buildout

• Oracle filed plans on Monday to issue $10 billion in stock and $10 billion in bonds, it said in a filing.
• The plans were outlined last week at its investor day.

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Follow your favorite stocksCREATE FREE ACCOUNTThe Oracle logo is displayed on a building at an Oracle campus on September 10, 2025 in Redwood Shores, California. Justin Sullivan | Getty Images

Oracle filed plans on Monday to issue new stock and more debt to finance its artificial intelligence buildout.

The hyperscaler will sell $10 billion in common stock and $10 billion in senior notes, according to filings with the Securities and Exchange Commission. While the fundraising was already outlined at an investor day last week, shares tumbled more than 4% Monday.

Oracle said it plans to use the proceeds for general corporate purposes, which may include capital expenditures, repayments of debt and future investments.

Oracle's one-day performance

The hyperscaler's stock initially bounced after last Wednesday's investor day, when Oracle also issued a revenue forecast of at least $225 billion for fiscal 2030. Stock and bonds in Oracle, co-founded by former CEO Larry Ellison, have been under pressure amid growing investor concerns about the massive amount of debt being taken on to fund AI infrastructure.

Oracle shares are down 33% in 2026 and 50% over the past 12 months. The yield on its investment-grade 4.95% bond due in 2031 is currently 7.157%.

The sentiment shift is also seen in Oracle's five-year credit default swaps, which are insurance against default. The spread sits at 296, up 270% in one year. That's more in line with a high-end junk bond rating, according to S&P Global Market Intelligence's Gavan Nolan.

Oracle's five-year credit default swaps on Nov. 2, 2026

While still an investment-grade credit, Oracle was downgraded by S&P to a BBB- in July, one rating level above high yield. It has $125.34 billion in debt, as of August 31, with the bulk in senior notes.

— CNBC's Ari Levy contributed reporting.

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