Oracle Just Sold $10 Billion of Stock at $116 a Share. Is the Stock a Buy at That Price?

Oracle (ORCL) closed out its full $20 billion capital raise in just five days, selling $10 billion of stock at $116 per share alongside $10 billion in bonds. The equity portion adds roughly 3% dilution for existing shareholders.

The valuation case: at $116, ORCL trades near 10x fiscal 2028 earnings for a company growing revenue about 30%. That multiple looks modest against the growth rate.

The pressure points are in the balance sheet. Oracle spent $28.5 billion on capital expenditures in Q1 alone, well above the $20 billion just raised. Debt now stands at $125 billion, and interest costs are rising. Positive free cash flow isn't expected until late fiscal 2028.

Interpretation: the raise buys time but doesn't close the funding gap. One quarter of spending outran the entire deal, which suggests further financing could be needed if spending stays at that pace. The fast execution shows strong demand for ORCL paper, yet the 3% dilution and heavier debt load are real costs shareholders absorb now for payoffs that sit years out.