Oracle Corporation (ORCL)
NYSE:ORCL
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Oracle
(NYSE:ORCL)
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Rating:60Neutral
Price Target:
$193.00
▲(10.25% Upside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by leveraged financials and the recent negative free-cash-flow profile, with technicals also soft versus key moving averages. These risks are partially offset by upbeat earnings-call guidance and exceptional forward demand visibility (record RPO), while valuation remains moderately expensive.
Positive Factors
Recurring cloud revenue momentum
Durable demand for Oracle's cloud infrastructure and large AI contracts underpins multi-year subscription revenue growth and upsell opportunities. Strong cloud traction expands high-margin recurring revenue, supports longer RPO visibility, and reduces dependency on one-time licences, strengthening long-term revenue resilience.
Negative Factors
High leverage and indebtedness
Materially higher debt levels reduce financial flexibility and raise refinancing and interest-rate risk during a multi-year buildout. Elevated leverage increases sensitivity to cash-flow shortfalls and may constrain strategic optionality or force dilutive financing if capital markets deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cloud revenue momentum
Durable demand for Oracle's cloud infrastructure and large AI contracts underpins multi-year subscription revenue growth and upsell opportunities. Strong cloud traction expands high-margin recurring revenue, supports longer RPO visibility, and reduces dependency on one-time licences, strengthening long-term revenue resilience.
Read all positive factors
Oracle Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Oracle is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Oracle is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyOracle (ORCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$529.48B
Dividend Yield1%
Average Volume (3M)23.49M
Price to Earnings (P/E)31.0
Beta (1Y)1.67
Revenue Growth17.35%
EPS Growth32.98%
CountryUS
Employees159,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)5.94
Shares Outstanding2,876,046,000
10 Day Avg. Volume30,625,030
30 Day Avg. Volume23,487,146
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)16.59
Price to Sales (P/S)10.60
P/FCF Ratio-30.15
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue11.48
Enterprise Value/Gross Profit17.44
Enterprise Value/Ebitda24.09
Forecast
1Y Price Target
$264.72Price Target Upside51.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering32
EPS Forecast (FY)8.02
Revenue Forecast (FY)$88.78B
Oracle Business Overview & Revenue Model
Company Description
Oracle Corporation, a global technology giant, provides a comprehensive suite of enterprise information technology solutions worldwide. A core part of its portfolio comprises cloud-based software-as-a-service (SaaS) applications, including the Ora...
How the Company Makes Money
Oracle primarily makes money by selling software and cloud services through subscription and support contracts, complemented by license sales, hardware sales, and services.
1) Cloud services and license support (recurring): A large portion of Ora...
Oracle Earnings Call Summary
Earnings Call Date:Jun 10, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 14, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based momentum—record quarter revenue, very large and rapidly growing cloud infrastructure and database businesses, exceptional RPO and cash flow, and bullish FY2027 guidance. These positives are tempered by near-term gross margin pressure from heavy data-center investments, very large CapEx and financing needs, component cost inflation, and some concentration risk from very large contracts. Management presented mitigations (contract pass-throughs, prepaid/BYOH economics, high GPU utilization, and expected strong returns at steady state) and reconfirmed long-term targets.Positive Updates
Record Quarter and Strong Revenue Growth
Q4 revenue of $19.2B, up 21% year-over-year in USD; full-year revenue surpassed $67B for the first time.
Negative Updates
Gross Margin Pressure from Infrastructure Ramp
Full-year gross margin stepped down around 5 percentage points as expected due to data center buildout and infrastructure revenue acceleration; company expects gross margin to step down further in FY27 due to timing and mix from new projects.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarter and Strong Revenue Growth
Q4 revenue of $19.2B, up 21% year-over-year in USD; full-year revenue surpassed $67B for the first time.
Read all positive updates
Company Guidance
Oracle guided to strong FY2027 growth and heavy investment: total revenue is expected to grow ~34% in constant currency, non‑GAAP EPS is forecast at $8.05 (up ~18% CC, excluding FY26 one‑time gains), gross margin is expected to step down on data‑center ramp and mix while infrastructure margins should improve as sites reach full contractual revenue, operating costs are expected to be slightly negative year‑over‑year in dollars, and net cash outlay for capital expenditures is projected at ~ $70 billion (with $20–$25 billion of customer prepayments/timing impacts that will make reported CapEx higher), supported by record RPO of $638 billion (up 363%) with ~12% recognized in the next 12 months and ~34% in months 13–36; the company plans to raise ~ $40 billion of debt and equity in FY27 (including a previously announced $20 billion at‑the‑market equity issuance) and does not expect additional debt in calendar 2026. For Q1 FY27 Oracle expects total revenue growth of 27%–29% in USD, cloud revenue growth of 58%–64%, and non‑GAAP EPS of $1.72–$1.76 (up 17%–20% in USD), with revenues and earnings anticipated to accelerate in the second half as more megawatts come online; Oracle also reconfirmed its long‑term CAGRs of +31% revenue and +28% EPS through FY2030.Oracle Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 67.36B | 57.40B | 52.96B | 49.95B | 42.44B |
| Gross Profit | 43.92B | 40.47B | 37.82B | 36.39B | 33.56B |
| EBITDA | 32.14B | 23.91B | 21.39B | 18.74B | 13.53B |
| Net Income | 17.09B | 12.44B | 10.47B | 8.50B | 6.72B |
Balance Sheet | |||||
| Total Assets | 261.76B | 168.36B | 140.98B | 134.38B | 109.30B |
| Cash, Cash Equivalents and Short-Term Investments | 31.89B | 11.20B | 10.66B | 10.19B | 21.90B |
| Total Debt | 156.19B | 104.10B | 94.47B | 90.48B | 75.86B |
| Total Liabilities | 218.70B | 147.39B | 131.74B | 132.83B | 115.06B |
| Stockholders Equity | 43.06B | 20.45B | 8.70B | 1.07B | -6.22B |
Cash Flow | |||||
| Free Cash Flow | -23.69B | -394.00M | 11.81B | 8.47B | 5.03B |
| Operating Cash Flow | 31.98B | 20.82B | 18.67B | 17.16B | 9.54B |
| Investing Cash Flow | -51.85B | -21.71B | -7.36B | -36.48B | 11.22B |
| Financing Cash Flow | 40.28B | 1.10B | -10.55B | 7.91B | -29.13B |
Oracle Technical Analysis
Negative
175.06
Price Trends
184.95
Negative
169.57
Positive
204.90
Negative
Market Momentum
4.00
Positive
42.09
Neutral
10.13
Positive
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 175.06 is below the 20-day moving average (MA) of 205.24, below the 50-day MA of 184.95, and below the 200-day MA of 204.90, indicating a bearish trend. The MACD of 4.00 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 10.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORCL.
Oracle Risk Analysis
Oracle disclosed 34 risk factors in its most recent earnings report. Oracle reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oracle Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $136.32B | 17.95 | 14.95% | 0.63% | 10.98% | 34.24% | |
80 Outperform | $2.90T | 23.17 | 33.13% | 0.44% | 17.87% | 29.63% | |
80 Outperform | $227.82B | 241.86 | 15.49% | ― | 19.51% | -33.05% | |
76 Outperform | $176.04B | -7,065.30 | -4.15% | ― | 23.17% | 73.54% | |
72 Outperform | $189.07B | 21.81 | 17.25% | 1.07% | 14.77% | 41.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $529.48B | 31.01 | 57.35% | 1.00% | 17.35% | 32.98% |
* Technology Sector Average
ORCL
Oracle
184.13
-24.87
-11.90%
MSFT
Microsoft
390.74
-84.60
-17.80%
PANW
Palo Alto Networks
279.62
81.51
41.14%
CRM
Salesforce
165.89
-95.36
-36.50%
SAP
SAP SE
164.18
-127.99
-43.81%
CRWD
CrowdStrike Holdings
682.80
203.41
42.43%
Oracle Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Oracle Posts Record Q4 Results on Surging AI Cloud
Positive
Jun 10, 2026
Oracle reported record financial results for its fourth quarter and fiscal year 2026, with total quarterly revenue rising 21% to $19.2 billion and full-year revenue climbing 17% to $67.4 billion, driven primarily by rapid expansion in cloud servic...
Business Operations and StrategyExecutive/Board Changes
Oracle appoints healthcare leader Tomislav Mihaljevic to board
Positive
May 12, 2026
Oracle Corporation has expanded its board of directors to 13 members and elected Dr. Tomislav Mihaljevic, CEO and president of Cleveland Clinic, as a director effective May 6, 2026, with the appointment announced on May 12, 2026. He will receive s...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Oracle Names New CFO Amid Strong Cloud Momentum
Positive
Apr 6, 2026
On April 6, 2026, Oracle appointed Hilary Maxson as Chief Financial Officer and Principal Financial Officer, succeeding Douglas Kehring, who will continue as Executive Vice President of Operations. Maxson, formerly Group CFO at Schneider Electric ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.