Oracle Raises Dividend While Funding $50B AI Infrastructure Buildout
Oracle, valued at $460B, raised its quarterly dividend in 2025 with payouts projected to reach $3.05 per share by fiscal 2030. The company plans to raise $50B in 2026 for AI infrastructure as RPOs surged 438% to $523B, driving capex and a $23B free cash outflow.
1. Dividend Growth and Market Position
Oracle, with a market cap of $460B, lifted its quarterly dividend to $0.50 per share in 2025, bringing annual dividend to $2.00 per share and sustaining a 12.8% compound annual growth rate over the past decade.
2. AI Infrastructure Fundraising
The company intends to raise up to $50B in calendar year 2026 for AI infrastructure buildouts, securing construction loans for new data centers in New Mexico and Wisconsin to support expanding cloud capacity.
3. Surge in Remaining Performance Obligations
Oracle’s Remaining Performance Obligations jumped 438% to $523B following AI cloud contracts with Nvidia, Meta, OpenAI, AMD and TikTok, marking a pivotal shift in its subscription revenue backlog.
4. Cash Flow and Debt Outlook
Heavy capital expenditures are projected to generate a $23B free cash outflow in fiscal 2026 and over $35B across the next two years, against a $5.75B annual dividend cost, with management aiming to maintain an investment-grade debt rating.