Oracle (ORCL) AI Stock Analysis

• Market Cap: $659.01B
• Dividend Yield: 0.76%
• Average Volume (3M): 10.42M
• Price to Earnings (P/E): 54.0
• Beta (1Y): 1.38
• Revenue Growth: 8.38%
• EPS Growth: 16.96%
• Country: US
• Employees: 159,000
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 1.70
• Shares Outstanding: 2,808,833,000
• 10 Day Avg. Volume: 10,558,744
• 30 Day Avg. Volume: 10,423,921
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 9.99
• Enterprise Value/Gross Profit: 14.17
• Enterprise Value/Ebitda: 23.98
• 1Y Price Target: $249.14
• Price Target Upside: 5.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 34

• Rating: 76 Outperform
• Price Target: $281.00 ▲(18.88% Upside)

Oracle's overall stock score reflects strong technical indicators and positive earnings call guidance, highlighting robust growth in cloud services. However, high leverage and negative free cash flow present risks. The premium valuation suggests the stock is priced for high growth, which may limit upside potential.

Positive Factors

Cloud Services Performance

Oracle's MultiCloud database revenue continues to grow at over 100%, demonstrating strong performance in cloud services.

Revenue Growth

The agreement with OpenAI could result in a significant increase in Oracle's revenue run rate as more data center capacity is brought online.

Negative Factors

Competitive Pressure

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 computer technology corporation that specializes in developing and marketing database software and technology, cloud-engineered systems, and enterprise software products. The company operates in multiple sectors, including cloud applications, cloud infrastructure, and hardware systems. Oracle’s core products include its flagship Oracle Database, Oracle Cloud Infrastructure, and a suite of cloud applications for enterprise resource planning (ERP), customer relationship management (CRM), and human capital management (HCM).

How the Company Makes Money

Oracle generates revenue primarily through a combination of software licensing, cloud services, and hardware systems. Its key revenue streams include subscription-based cloud services, which have seen significant growth as businesses migrate to cloud solutions, and software licensing fees for its on-premises database and applications. Additionally, Oracle earns revenue from services such as consulting, support, and training associated with its products. The company has formed strategic partnerships with other technology firms, enhancing its cloud offerings and expanding its market reach, which also contributes to its earnings. Oracle's focus on innovation and investment in research and development further drives its competitive advantage in the technology sector.

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: Neutral
• Last Price: 236.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORCL, the sentiment is Neutral. The current price of 236.37 is below the 20-day moving average (MA) of 247.14, above the 50-day MA of 234.50, and above the 200-day MA of 180.32, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ORCL.

Oracle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	84 Outperform	$3.79T	37.37	33.28%	0.65%	14.93%	15.50%
ADBE	82 Outperform	$149.93B	23.15	52.25%	―	10.69%	40.10%
SNPS	77 Outperform	$113.39B	43.29	15.82%	―	0.30%	50.17%
ORCL	76 Outperform	$659.01B	54.04	85.36%	0.76%	8.38%	16.96%
PANW	72 Outperform	$122.36B	116.02	17.45%	―	14.87%	-57.43%
CRWD	69 Neutral	$103.20B	721.64	-5.76%	―	25.94%	-226.80%
Sector *	50 Neutral	AU$1.63B	-0.40	3.91%	3.39%	16.91%	-3.75%

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.

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.