Oracle (ORCL) AI Stock Analysis

• Market Cap: $569.97B
• Dividend Yield: 1%
• Average Volume (3M): 31.87M
• Price to Earnings (P/E): 36.7
• Beta (1Y): 1.58
• Revenue Growth: 11.08%
• EPS Growth: 29.56%
• Country: US
• Employees: 159,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.26
• Shares Outstanding: 2,873,130,000
• 10 Day Avg. Volume: 48,839,290
• 30 Day Avg. Volume: 31,870,261
• PEG Ratio: 2.17
• Price to Book (P/B): 22.57
• Price to Sales (P/S): 8.04
• P/FCF Ratio: -1.17K
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 11.51
• Enterprise Value/Gross Profit: 16.29
• Enterprise Value/Ebitda: 31.14
• 1Y Price Target: $307.77
• Price Target Upside: 57.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 35
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $215.00 ▲(10.06% Upside)

Oracle's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by growth in cloud and AI. However, technical analysis indicates bearish trends, and valuation metrics suggest overvaluation. The company's high leverage and negative free cash flow are notable risks.

Positive Factors

Cloud Revenue Growth

The significant growth in cloud revenue underscores Oracle's successful transition to cloud services, positioning it well for future market demands.

AI Integration

Integration of AI into Oracle's offerings enhances product capabilities, providing a competitive edge in the growing AI-driven technology market.

Multicloud Strategy

The multicloud strategy expands Oracle's reach and flexibility, catering to diverse customer needs and compliance requirements, strengthening its market position.

Negative Factors

High Leverage

High leverage indicates financial risk, potentially limiting Oracle's ability to invest in growth opportunities and manage economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests challenges in funding operations and investments, which could strain Oracle's financial flexibility and growth initiatives.

Capital-Intensive AI Infrastructure

The capital-intensive nature of AI infrastructure may pressure Oracle's resources, affecting its ability to sustain long-term investments and profitability.

Oracle Business Overview & Revenue Model

Company Description

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database, an enterprise database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, MySQL HeatWave, Internet-of-Things, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services; and consulting and customer services. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.

How the Company Makes Money

Oracle generates revenue through several key streams. The primary source is its cloud services and license support, which includes subscriptions to its cloud applications and database services. This segment has seen significant growth as businesses increasingly migrate to cloud-based solutions. Additionally, Oracle earns revenue from software licenses and hardware systems, where it sells its on-premises software and engineered systems. Maintenance and support services also contribute to its earnings, providing ongoing support to customers who purchase its software products. Strategic partnerships, such as collaborations with major cloud providers and technology firms, enhance its market reach and drive revenue growth. The company also benefits from its extensive customer base, which includes large enterprises and government entities, leading to recurring revenue through long-term contracts.

Oracle Financial Statement Overview

Summary

Oracle demonstrates strong profitability and operational efficiency, with consistent revenue growth and robust margins. However, high leverage and negative free cash flow in the TTM highlight potential financial risks. The company needs to manage its debt levels and improve free cash flow to ensure long-term financial stability.

Income Statement

Oracle's income statement shows strong profitability with a consistent gross profit margin above 69% and a net profit margin over 21% in the TTM. Revenue growth is steady at 3.39% in the TTM, indicating a healthy expansion. EBIT and EBITDA margins are robust, reflecting efficient operations and cost management. However, the slight decline in gross profit margin over time suggests potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.36 in the TTM, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is strong at 66.28%, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Oracle's cash flow statement shows a mixed picture. Operating cash flow is strong, but free cash flow is negative in the TTM, indicating potential challenges in covering capital expenditures. The free cash flow to net income ratio is negative, highlighting cash flow issues despite profitability. However, the operating cash flow to net income ratio is reasonable, suggesting operational efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.40B	52.96B	49.95B	42.44B	40.48B
Gross Profit	40.47B	37.82B	36.39B	33.56B	32.62B
EBITDA	23.91B	21.39B	18.74B	13.53B	18.41B
Net Income	12.44B	10.47B	8.50B	6.72B	13.75B
Balance Sheet
Total Assets	168.36B	140.98B	134.38B	109.30B	131.11B
Cash, Cash Equivalents and Short-Term Investments	11.20B	10.66B	10.19B	21.90B	46.55B
Total Debt	104.10B	94.47B	90.48B	75.86B	84.25B
Total Liabilities	147.39B	131.74B	132.83B	115.06B	125.16B
Stockholders Equity	20.45B	8.70B	1.07B	-6.22B	5.24B
Cash Flow
Free Cash Flow	-394.00M	11.81B	8.47B	5.03B	13.75B
Operating Cash Flow	20.82B	18.67B	17.16B	9.54B	15.89B
Investing Cash Flow	-21.71B	-7.36B	-36.48B	11.22B	-13.10B
Financing Cash Flow	1.10B	-10.55B	7.91B	-29.13B	-10.38B

Oracle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 195.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORCL, the sentiment is Negative. The current price of 195.34 is below the 20-day moving average (MA) of 200.86, below the 50-day MA of 232.58, and below the 200-day MA of 213.54, indicating a bearish trend. The MACD of -11.03 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORCL.

Oracle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRM	80 Outperform	$247.96B	35.15	12.18%	0.63%	8.41%	22.92%
MSFT	79 Outperform	$3.60T	34.64	32.24%	0.71%	15.59%	15.89%
PANW	73 Outperform	$132.07B	119.32	15.33%	―	15.30%	-60.71%
SAP	69 Neutral	$287.36B	36.38	16.30%	1.07%	11.85%	167.23%
CRWD	67 Neutral	$121.80B	-379.01	-8.88%	―	22.05%	-341.24%
ORCL	66 Neutral	$569.97B	36.71	70.60%	1.00%	11.08%	29.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Oracle Corporate Events

Oracle Reports Strong Q2 2026 Financial Results

Oracle announced its fiscal 2026 Q2 financial results, reporting a significant increase in remaining performance obligations to $523 billion, up 438% year-over-year. The company’s total quarterly revenues rose by 14% in USD to $16.1 billion, driven by a 34% increase in cloud revenues. Oracle’s strategic shift towards chip neutrality and its focus on embedding AI across its software products are expected to enhance its market position, with its Multicloud database business experiencing rapid growth.

Oracle Expands Board with Stephen Rusckowski Appointment

On November 18, 2025, Oracle Corporation’s Board of Directors elected Stephen Rusckowski as a director, expanding the board to 14 members. Rusckowski, with a rich background in healthcare and technology, is expected to provide valuable insights into Oracle Health’s operations. Additionally, Oracle held its 2025 Annual Meeting of Stockholders where directors were elected, executive compensation was approved, and Ernst & Young LLP was ratified as the independent accounting firm for the fiscal year ending May 31, 2026.

Oracle Completes $18 Billion Notes Issuance

On September 26, 2025, Oracle Corporation completed the issuance and sale of $18 billion in aggregate principal amount of notes with varying maturities and interest rates. The proceeds from this issuance are intended for general corporate purposes, including capital expenditures, debt repayment, and potential investments or acquisitions, which could impact Oracle’s financial strategy and market positioning.

Oracle Announces New Co-CEOs to Drive AI Growth

On September 22, 2025, Oracle announced significant management changes with the promotion of Clay Magouyrk and Mike Sicilia to Chief Executive Officers, effective immediately. These changes reflect Oracle’s strategic focus on advancing its AI and cloud infrastructure capabilities. Magouyrk, with his experience in Oracle Cloud Infrastructure, and Sicilia, with his expertise in industry applications, are expected to drive Oracle’s growth in the AI era. Safra Catz transitions to Executive Vice Chair of the Board, while Doug Kehring becomes the Principal Financial Officer. These leadership changes aim to position Oracle for continued success in the rapidly evolving technology landscape.