Oracle (ORCL) AI Stock Analysis

• Market Cap: $658.67B
• Dividend Yield: 0.85%
• Average Volume (3M): 16.45M
• Price to Earnings (P/E): 54.0
• Beta (1Y): 1.40
• Revenue Growth: 8.38%
• EPS Growth: 16.96%
• Country: US
• Employees: 159,000
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): 1.70
• Shares Outstanding: 2,808,833,000
• 10 Day Avg. Volume: 16,298,168
• 30 Day Avg. Volume: 16,454,846
• PEG Ratio: 25.32
• Price to Book (P/B): 27.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.46K
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 14.99
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $227.89
• Price Target Upside: -3.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 33

• Rating: 76 Outperform
• Price Target: $247.00 ▲(5.11%Upside)

Oracle's overall stock score reflects strong financial performance and robust growth in cloud services, supported by positive earnings call guidance. While high leverage and free cash flow challenges pose risks, the stock's bullish momentum and strategic investments in cloud infrastructure and AI offer significant growth potential.

Positive Factors

New Contracts

Oracle has signed a multi-year Cloud contract expected to contribute more than $30 billion in annual revenue starting in FY28, marking it as the largest deal in the company's history.

Revenue Growth

Oracle's Cloud revenue, driven by OCI Gen II and Strategic Back Office, is outpacing other parts of the business, indicating strong revenue growth.

Strategic Partnerships

OpenAI's expanded deal with Oracle for additional data center capacity points to potential revenue growth scenarios.

Negative Factors

Capital Expenditure Concerns

Oracle's CAPEX spend is expected to be lower than anticipated, raising potential concerns about infrastructure investment and capacity.

Market Competition

Despite Oracle's accelerating growth in Cloud, the broader software/Cloud market sees many SaaS growth names continuing to decelerate, highlighting competitive pressures.

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 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 shows strong revenue growth and profitability, with impressive margins. However, high leverage and negative free cash flow pose risks. The company's strong cash generation is a positive factor, but careful management of debt and capital expenditures is essential.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	57.40B	52.96B	49.95B	42.44B	40.48B
Gross Profit	55.09B	37.82B	36.39B	33.56B	32.62B
EBITDA	17.68B	21.58B	18.90B	18.96B	18.57B
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	20.97B	8.70B	1.56B	-5.77B	5.95B
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: 235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 235 is above the 20-day moving average (MA) of 215.83, above the 50-day MA of 181.64, and above the 200-day MA of 168.77, indicating a bullish trend. The MACD of 15.87 indicates Negative momentum. The RSI at 75.39 is Negative, neither overbought nor oversold. The STOCH value of 78.82 is Neutral, 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	83 Outperform	$3.74T	38.75	33.61%	0.66%	14.13%	12.10%
PANW	78 Outperform	$136.02B	117.92	21.16%	―	13.91%	-50.96%
ORCL	76 Outperform	$658.67B	54.01	85.36%	0.85%	8.38%	16.96%
ADBE	76 Outperform	$162.15B	23.88	52.25%	―	10.69%	40.10%
SNPS	75 Outperform	$85.57B	39.68	15.82%	―	0.30%	50.17%
CRWD	74 Outperform	$126.55B	721.64	-5.76%	―	25.94%	-226.80%
Sector *	69 Neutral	¥230.62B	14.12	7.50%	2.70%	9.13%	8.47%

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.