The rally suggests investors had been pricing in more financing risk than profitability risk, so a hard ceiling on new funding did as much work as the revenue target. A capped equity component also limits dilution concerns that had weighed on the stock. Beyond Oracle, a credible path to self-funded AI capacity eases pressure on the broader argument that hyperscaler spending cannot pay for itself. It arrived the same evening as Microsoft and Alphabet reported lower than expected capex. The scale of the move also leaves the stock more sensitive to any slippage against those targets.---Oracle gave investors a big number and, more importantly, a spending limit, and the market rewarded the discipline more than the ambition.Summary:Oracle shares rose around 11% after its Investor Day; no quarterly results were releasedFiscal 2030 targets: revenue of $225 billion or more, a non-GAAP operating margin of 40% or higher, and non-GAAP EPS of $21 or moreFiscal 2027 guidance was reaffirmed at revenue of at least $90 billion and non-GAAP EPS of $8.10New capital-market funding is capped at $20 billion from fiscal 2027 to fiscal 2030, split roughly evenly between equity and debtCapex will peak in fiscal 2027 and 2028, and free cash flow is expected to turn positive in the second half of fiscal 2028Free cash flow of at least $30 billion is targeted in fiscal 2029, with net debt below 3.5 times adjusted EBITDAOracle shares rose around 11% on Wednesday after the company used its Investor Day to set out ambitious long-term growth targets and, just as importantly for investors, put clear limits on how much new money it will raise to fund its AI cloud expansion.The headline target is revenue of $225 billion or more in fiscal 2030, which implies compound annual growth of more than 35% from fiscal 2026. Oracle also projected a non-GAAP operating margin of at least 40% and non-GAAP earnings per share of $21 or more by that year. For the nearer term, the company reaffirmed its fiscal 2027 guidance for revenue of at least $90 billion and non-GAAP EPS of $8.10.The event was not an earnings release, and no new quarterly results were reported. The share move instead reflected a reset in how investors view the risk around Oracle’s heavy spending on data centre capacity.That spending has raised concerns over the company’s debt load, and the funding plan was aimed squarely at those worries. Oracle said new capital-market funding from fiscal 2027 through fiscal 2030 will be capped at $20 billion, excluding refinancing of existing debt, split roughly evenly between equity and gross debt. That comes on top of a $20 billion at-the-market equity raise completed in the first quarter of fiscal 2027. The company is also targeting net debt below 3.5 times adjusted EBITDA in fiscal 2029.On cash flow, Oracle expects capital expenditure to peak in fiscal 2027 and 2028 before declining. It forecast free cash flow turning positive in the second half of fiscal 2028 and reaching at least $30 billion in fiscal 2029, a figure Bloomberg reported was above market estimates. From fiscal 2029, the company expects its growth to be self-funded.The targets are long-dated and depend on sustained demand for AI computing capacity and on Oracle delivering that capacity on schedule. The fiscal 2028 turn to positive free cash flow will be the first major checkpoint for whether the plan is on track. This article was written by Eamonn Sheridan at investinglive.com.