Oracle Corporation (ORCL)
Information Technology · $463B market cap · SEC CIK 0001341439
fundamentals score out of 100
Next reports on Mar 8, 2027, with analysts expecting $2.06 in earnings per share.
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%.
- A PEG of 0.50: a P/E of 24.5× is low for EPS growing 49%.
- Has compounded revenue at 10.7% a year over five years.
The case against
- Burned $23.7B of free cash in FY2025.
- Down 51.9% over the past year.
- Swings harder than the market (beta 1.77).
- Near the bottom of its 52-week range, 55% below the high. Falling prices usually have a reason; find it first.
- Free-cash-flow yield of -5.1% is lower than 100% 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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 43 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 52 |
| Momentumhow the price has behaved lately | 13 |
| Stabilityhow violently it moves, what it owes and what it pays you | 24 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 24.5× |
|---|---|
| Price / book | 6.43× |
| Price / sales | 6.4× |
| Revenue growth (YoY) | +21.6% |
| EPS growth (YoY) | +49.1% |
| Gross margin | 64% |
| Operating margin | 32% |
| Net margin | 26% |
| Return on equity | 43% |
| Debt / equity | 2.01× |
| Current ratio | 1.17 |
| Dividend yield | 1.38% |
| Beta | 1.77 |
| 52-week range | $114.50 – $329.50 |
| Position in that range | 16% of the way up |
| 3-month return | -19.4% |
| 1-year return | -51.9% |
Five years of financials, as filed
Pulled from Oracle Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $67.4B | $57.4B | $53.0B | $50.0B | $42.4B |
| Operating income | $20.6B | $17.7B | $15.4B | $13.1B | $10.9B |
| Net income | $17.1B | $12.4B | $10.5B | $8.5B | $6.7B |
| Operating cash flow | $32.0B | $20.8B | $18.7B | $17.2B | $9.5B |
| Capital expenditure | $55.7B | $21.2B | $6.9B | $8.7B | $4.5B |
| Total assets | $205B | $148B | $134B | $128B | $107B |
| Shareholder equity | $30.0B | $13.7B | $3.9B | -$4.2B | -$10.1B |
| Cash | $19.2B | $10.9B | $8.2B | $6.8B | $17.9B |
| Free cash flow | -$23.7B | -$394M | $11.8B | $8.5B | $5.0B |
| Operating margin | 30.6% | 30.8% | 29.0% | 26.2% | 25.7% |
| Net margin | 25.4% | 21.7% | 19.8% | 17.0% | 15.8% |
| Diluted shares | 2.9B | 2.9B | 2.8B | 2.8B | 2.8B |
Share count is up 4.6% over 4 years. Mild issuance.
What Oracle Corporation says it does
and Note 13 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report provide additional information related to our businesses and operating segments and align to how our chief operating decision makers (CODMs), which are our Chief Executive Officers and Chief Technology Officer, view our operating results and allocate resources. Cloud and Software Business Our cloud and software business, which represented 87% and 86% of our total revenues in fiscal 2026 and 2025, respectively, markets, sells and delivers a broad spectrum of enterprise applications and infrastructure technologies through our cloud and software offerings. Revenue streams included in our cloud and software business are: • Cloud revenues, which are earned by providing customers access to Oracle Cloud applications and infrastructure technologies via cloud-based deployment models that Oracle develops, provides unspecified updates and…
Risk factors ORCL lists in its 10-K
- Information About Our Executive Officers
- Data Privacy, Cybersecurity and Intellectual Property Risks
- Risks Related to our Common and Preferred Stock
- We may be unsuccessful in developing and selling new products and services, integrating acquired products and services and enhancing our existing products and services
- Our AI products may not operate as anticipated, which could adversely affect our reputation, revenues and profitability
- If we do not successfully execute our Oracle Cloud strategy, including our offerings of Oracle Cloud, our revenues and profitability may decline
- If we are unable to secure data center capacity at affordable rates or do not accurately plan for and manage our infrastructure capacity requirements, our profitability may decline
- Our cloud offerings and hardware offerings are complex, and if we cannot successfully manage this complexity, including the sourcing of technologies and components, the results of these businesses will suffer
- We may not receive significant revenues from our current research and development efforts for several years, if at all
- Our products and services may not function properly if we experience significant coding, manufacturing or configuration errors in our cloud, software and hardware offerings
- If we are unable to compete effectively, the results of operations and prospects for our business could be harmed
- Any failure to offer high-quality technical support services may adversely affect our relationships with our customers and our financial results
- Our periodic workforce restructurings and reorganizations can be disruptive
- We may lose key employees or may be unable to hire enough qualified employees