Oracle (ORCL) AI Stock Analysis

• Market Cap: $702.15B
• Dividend Yield: 0.71%
• Average Volume (3M): 12.53M
• Price to Earnings (P/E): 57.6
• Beta (1Y): 1.39
• Revenue Growth: 8.38%
• EPS Growth: 16.96%
• Country: US
• Employees: 159,000
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Infrastructure
• EPS (TTM): 1.70
• Shares Outstanding: 2,808,833,000
• 10 Day Avg. Volume: 9,229,533
• 30 Day Avg. Volume: 12,529,226
• PEG Ratio: 31.03
• Price to Book (P/B): 34.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.79K
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 26.19
• Enterprise Value/Ebitda: 12.90
• 1Y Price Target: $237.86
• Price Target Upside: -6.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 33

• Rating: 75 Outperform
• Price Target: $271.00 ▲(6.79%Upside)

Oracle's overall stock score reflects strong technical momentum and positive growth prospects from cloud and AI initiatives, partially offset by financial leverage concerns and high valuation. The company's ability to manage cash flow and supply constraints will be crucial for sustaining its growth trajectory.

Positive Factors

Growth and Revenue

Oracle's cloud revenue grew by 27% year over year, contributing significantly to the overall revenue increase.

Market Positioning

The company's cloud strategy supports its strong growth as the cloud-based subscription model gives it the edge to provide more flexible and modular offerings, thereby boosting its customer base.

Strategic Partnerships

OpenAI has expanded its deal with Oracle for an additional 4.5GW of US data center capacity, pointing to potential revenue growth scenarios for Oracle.

Negative Factors

Competition and Pricing

Intensified competition could create downward pressure on product pricing and margins.

Cybersecurity Risks

The occurrence of any disruptive cyber incidents could harm Oracle's business or damage its brand and reputation.

Oracle Business Overview & Revenue Model

Company Description

Oracle Corporation (ORCL) is a multinational technology company headquartered in Austin, Texas. Specializing in database management systems, Oracle provides a wide array of software products and services, especially for enterprise users. Its core offerings include cloud services, database solutions, enterprise software, and hardware systems. Oracle's cloud technology encompasses infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), providing comprehensive solutions for businesses to manage data and applications.

How the Company Makes Money

Oracle makes money primarily through several key revenue streams: cloud and license revenues, hardware revenues, and services revenues. Its cloud and license business includes sales from cloud infrastructure and applications, as well as software licensing for its database and middleware products. The hardware business generates revenue from the sale of servers, storage, and networking products. Additionally, Oracle offers maintenance and professional services that provide ongoing support and consulting for its products, further contributing to its revenue. Significant partnerships with global enterprises and government entities also play a crucial role in driving Oracle's earnings, as these collaborations help expand its market reach and customer base.

Oracle Financial Statement Overview

Summary

Oracle displays strong revenue growth and profitability with effective cost management, as evidenced by a high gross profit margin and improved net profit margin. However, the high debt-to-equity ratio and negative free cash flow raise concerns about financial leverage and liquidity.

Income Statement

Oracle's income statement reflects strong revenue growth with a 8.38% increase from 2024 to 2025, and a consistent rise over the past few years. Gross profit margin remains impressive at 95.98%, highlighting efficient cost management. The net profit margin improved to 21.67%, indicating enhanced profitability. However, the EBIT margin decreased slightly to 30.79% from the previous year, suggesting a minor increase in operating expenses relative to revenue.

Balance Sheet

The balance sheet shows a substantial increase in stockholders' equity to $20.97 billion, improving the equity ratio to 12.46%. However, the debt-to-equity ratio remains high at 4.97, indicating significant leverage that could pose risk if not managed carefully. The return on equity improved to 59.33%, suggesting that Oracle is using its equity efficiently to generate profits.

Cash Flow

Oracle's cash flow statement reveals a decline in free cash flow, from $11.81 billion in 2024 to a negative position in 2025. This is a concern despite an increase in operating cash flow to $20.82 billion. The operating cash flow to net income ratio is 1.67, reflecting strong cash generation relative to net income. However, investment in capital expenditures has led to cash flow challenges that need addressing.

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: Positive
• Last Price: 253.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORCL, the sentiment is Positive. The current price of 253.77 is above the 20-day moving average (MA) of 240.84, above the 50-day MA of 208.88, and above the 200-day MA of 174.40, indicating a bullish trend. The MACD of 11.49 indicates Positive momentum. The RSI at 73.66 is Negative, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORCL.

Oracle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	85 Outperform	$3.81T	39.61	33.28%	0.61%	14.93%	15.50%
SNPS	77 Outperform	$117.22B	45.62	15.82%	―	0.30%	50.17%
CRWD	77 Outperform	$116.03B	721.64	-5.76%	―	25.94%	-226.80%
ADBE	76 Outperform	$157.25B	23.28	52.25%	―	10.69%	40.10%
PANW	76 Outperform	$129.25B	104.74	21.16%	―	13.91%	-50.96%
ORCL	75 Outperform	$702.15B	57.58	85.36%	0.71%	8.38%	16.96%
Sector *	62 Neutral	$35.05B	6.90	-11.57%	2.06%	6.28%	-15.90%

Oracle Corporate Events

Oracle Reports Strong Start to Fiscal Year 2026

Oracle‘s CEO, Safra Catz, announced that the company is experiencing a robust beginning to its fiscal year 2026, with MultiCloud database revenue growing over 100%. Oracle has secured several significant cloud services agreements, including one expected to generate over $30 billion annually starting in fiscal year 2028. However, these contracts will not alter Oracle’s fiscal year 2026 guidance. The announcement highlights Oracle’s strategic positioning in the cloud services market, although it acknowledges potential risks and uncertainties that could impact future results.

The most recent analyst rating on (ORCL) stock is a Hold with a $167.00 price target. To see the full list of analyst forecasts on Oracle stock, see the ORCL Stock Forecast page.

Oracle Reports Strong Q4 2025 Financial Results

Oracle announced its fiscal 2025 Q4 and full-year financial results, reporting a significant increase in total quarterly revenues by 11% to $15.9 billion and cloud revenue growth of 27% to $6.7 billion. The company also declared a cash dividend of $0.50 per share, payable on July 24, 2025, reflecting its strong financial performance and commitment to returning value to shareholders.

The most recent analyst rating on (ORCL) stock is a Hold with a $167.00 price target. To see the full list of analyst forecasts on Oracle stock, see the ORCL Stock Forecast page.