Morgan Stanley: Oracle's financing path is clearer, maintains $210 target price

According to TechFlow, based on Chaoxiang Research, a Morgan Stanley research report dated October 29, 2026 indicates that Oracle expects the remaining approximately 6 gigawatts of construction to correspond to about $220 billion in capital expenditure requirements. Supplier financing, customer-provided hardware, and advance payments can reduce initial cash pressures, with the company expected to need an additional $20 billion in funding. Management anticipates free cash flow will turn positive in the second half of fiscal 2028.

Morgan Stanley maintains a "Market Perform" rating and a $210 price target, stating that the capital and return framework has become clearer, with the subsequent key focus on on-time capacity delivery and margin maintenance. Oracle targets reaching about 10 gigawatts of capacity by the end of fiscal 2028; the construction pace will impact revenue release and cash flow improvement, while expense leverage and the financing mix will also influence expansion quality.