Oracle Corporation (ORCL)
Information Technology · $362B market cap · SEC CIK 0001341439
ahead of 15% of the S&P 500 · #63 of 73 in Information Technology
Next reports on Dec 14, 2026, with analysts expecting $1.93 in earnings per share.
52-week range $109.21 to $250.25. 53% below its 52-week high and 8% above its low.
The case for ORCL
- Revenue up 21.6% on the year.
- Earns 43% back on shareholder equity.
- 26% of revenue drops through to net profit.
- Earnings per share up 49.1%.
- Reasonably priced for its growth: 19.1× earnings, where 13% a year of growth plus a 1.4% dividend would justify about 29×.
- Has compounded revenue at 10.7% a year over five years.
The case against
- Burned $23.7B of free cash in FY2026.
- Down 49.9% over the past year.
- Swings harder than the market (beta 1.82).
- Near the bottom of its 52-week range, 53% below the high. Falling prices usually have a reason; find it first.
- Free-cash-flow yield of −6.5% is lower than 99% of Information Technology companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 41 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 62 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 51 |
| Momentumhow the price has behaved lately | 9 |
| Stabilityhow violently it moves, what it owes and what it pays you | 33 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +21.6% |
|---|---|
| Over 5 years | +10.7% a year |
| FY2026 revenue | $67.4B (+17%) |
Free cash flow
Is it generating real cash? No, it is burning cash
| FY2026 free cash flow | −$23.7B |
|---|---|
| Of revenue | −35% |
| Of profit | −139% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 64% |
|---|---|
| Operating margin | 32% |
| Net margin, FY25 → FY26 → now | 21.7% → 25.4% → 26.4% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $31.3B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 2.01× |
Valuation
Is the stock price reasonable? Mixed: cheap on earnings, dear on cash
| P/E | 19.1× |
|---|---|
| Fair P/E for its growth | 29× |
| P/FCF | no free cash flow |
| Forward P/E | 14.0× |
| EV / EBITDA | 18.8× |
At 19.1× earnings it trades below the 29× that 13% a year of growth plus a 1.4% dividend would justify. Its free cash flow is negative, which counts against it.
The financials, five years deep
Pulled from Oracle Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $67.4B | $57.4B | $53.0B | $50.0B | $42.4B |
| Change on the year | +17% | +8% | +6% | +18% | — |
| Free cash flow | |||||
| Free cash flow | −$23.7B | −$394M | $11.8B | $8.5B | $5.0B |
| Of revenue | −35% | −1% | 22% | 17% | 12% |
| Profit margins | |||||
| Operating margin | 30.6% | 30.8% | 29.0% | 26.2% | 25.7% |
| Net margin | 25.4% | 21.7% | 19.8% | 17.0% | 15.8% |
| Debt vs. cash | |||||
| Cash | $31.3B | $10.8B | $10.5B | $9.8B | $21.4B |
| Long-term debt | — | — | — | — | $0 |
| Net cash (debt) | — | — | — | — | $21.4B |
What Oracle Corporation says it does
Oracle provides products and services that build, run and support enterprise information technology (IT) frameworks. Our products and services include enterprise applications and infrastructure offerings that incorporate and are enhanced by artificial intelligence (AI) technologies, including embedded AI-driven automation and analytics and generative AI capabilities. These offerings are delivered worldwide through a variety of flexible and interoperable IT deployment models. These models include cloud-based, on-premise and hybrid deployments, such as Oracle Exadata Cloud@Customer and multicloud options that enable customers to use Oracle cloud offerings in conjunction with other public clouds. We provide choice and flexibility to our customers as to when and how they deploy Oracle applications and infrastructure technologies. We believe that offering customers broad, comprehensive, flexible and interoperable deployment models for…