TLDR
- Oracle raises $18B in bonds to fund cloud expansion amid debt concerns.
- Oracle’s bond sale boosts cloud growth but increases $95B debt load.
- Oracle’s $18B debt sale supports infrastructure amid shifting leadership.
- Oracle’s bond sale secures cloud growth but raises long-term debt risks.
- Oracle’s $18B debt deal boosts cloud services, raising debt to $95B.
Oracle Corporation (ORCL) shares declined 1.71% on September 24, 2025, closing at $308.46. After hours, the stock saw a slight rebound, rising by 0.02% to $308.53.
Oracle’s Bond Sale Fuels Infrastructure Expansion
On Wednesday, Oracle secured an $18 billion bond sale to finance its expanding cloud infrastructure projects. This debt issue, which includes six parts and a rare 40-year bond, attracted nearly $88 billion in demand. Oracle aims to meet increasing demand for its services, especially from large-scale customers such as OpenAI and Meta Platforms Inc.
The company’s bond issuance will help fund its growing expenses, especially for data centers and cloud services. Analysts view the move as necessary for Oracle to maintain its competitiveness in the cloud market. The firm has already secured significant cloud contracts but must now invest heavily in infrastructure to fulfill those agreements.
Oracle Faces Rising Debt Amid Investment Expansion
Oracle’s bond deal has pushed its total long-term debt to approximately $95 billion, based on filings as of August 2025. This debt increase is expected to elevate Oracle’s leverage relative to earnings, although the company is likely to maintain its high credit rating. Despite the elevated debt, analysts are confident in Oracle’s ability to manage these obligations, citing the company’s strong contracts and established demand.
The company has experienced a shift in cash flow, with negative figures reported this year for the first time since 1992. While short-term financial challenges may persist, Oracle anticipates a return to positive cash flow by 2029. The $18 billion bond deal is part of a broader trend, as the company plans to raise around $65 billion in debt through 2028 to support its ongoing growth and infrastructure needs.
The bond sale is also part of a broader surge in U.S. corporate debt issuance. Through September 2025, U.S. companies have raised more than $190 billion, the most since February of the previous year. Many firms are taking advantage of favorable market conditions, such as falling yields and tight risk premiums, to fund their expansion efforts.
Oracle’s Shift Under New Leadership
Oracle’s bond sale follows a significant leadership change, with longtime CEO Safra Catz stepping down. As the company navigates its expansion, there is some uncertainty regarding whether the disciplined cost management under Catz will continue. Industry analysts remain focused on Oracle’s ability to execute its growth strategy effectively under new leadership.
