Oracle Corporation (ORCL)
NYSE:ORCL
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Oracle
(NYSE:ORCL)
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Rating:57Neutral
Price Target:
$167.00
▼(-4.60% Downside)
Action:ReiteratedDate:04/06/26
The score is held back most by financial risk (high leverage and sharply negative TTM free cash flow) and a bearish technical setup (price below all major moving averages with negative MACD). These are partly offset by a very strong and optimistic earnings narrative around accelerating cloud/AI growth and backlog, while valuation is moderate-to-premium with only a modest dividend.
Positive Factors
Recurring revenue base
Oracle’s core business is anchored in recurring subscriptions and support contracts, creating durable, predictable revenue and high customer stickiness. This installed-base model supports steady renewal economics, funds cloud migrations, and underpins multi-year revenue visibility as customers shift to subscription and consumption models.
Negative Factors
Very high leverage
Heavy leverage materially reduces financial flexibility and raises refinancing risk if market conditions tighten. Volatile or thin equity amplifies leverage metrics and can constrain strategic optionality (M&A, buybacks) or force more dilutive financing, creating a persistent balance‑sheet overhang on long‑term capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue base
Oracle’s core business is anchored in recurring subscriptions and support contracts, creating durable, predictable revenue and high customer stickiness. This installed-base model supports steady renewal economics, funds cloud migrations, and underpins multi-year revenue visibility as customers shift to subscription and consumption models.
Read all positive factors
Oracle (ORCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$464.17B
Dividend Yield1%
Average Volume (3M)29.62M
Price to Earnings (P/E)27.9
Beta (1Y)1.61
Revenue Growth14.87%
EPS Growth29.81%
CountryUS
Employees159,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.79
Shares Outstanding2,876,046,000
10 Day Avg. Volume35,498,216
30 Day Avg. Volume29,624,609
Financial Highlights & Ratios
PEG Ratio2.17
Price to Book (P/B)22.57
Price to Sales (P/S)8.04
P/FCF Ratio-1.17K
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue9.28
Enterprise Value/Gross Profit13.97
Enterprise Value/Ebitda20.30
Forecast
1Y Price Target
$244.21Price Target Upside39.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering34
EPS Forecast (FY)7.48
Revenue Forecast (FY)$67.26B
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 enter...
How the Company Makes Money
Oracle primarily makes money from recurring subscriptions and support contracts, complemented by cloud usage-based revenue, software licenses, and professional services. Its largest revenue streams are typically (1) Cloud Services and License Supp...
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 Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 16, 2026
Earnings Call Sentiment Positive
The call was strongly positive: management reported a standout quarter with double‑digit organic growth, substantial application momentum and go‑lives, massive year‑over‑year expansion in multicloud database (+531%) and AI infrastructure (+243%), significant capacity deliveries and secured power commitments, and successful upfront financing activity. Key challenges acknowledged include supply constraints for AI infrastructure, the capital intensity and near‑term profitability drag from construction, and some remaining financing and timing uncertainties. Overall, the positives—rapid revenue and earnings acceleration, large contract backlog/RPO, product innovation, strong margins on delivered capacity, and major customer wins—substantially outweigh the operational and financing risks highlighted.Positive Updates
Record Quarter — Strong Organic Growth
Q3 was the first quarter in over 15 years where both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD, reflecting broad-based acceleration across the business.
Negative Updates
Supply-Demand Imbalance for AI Infrastructure
Management acknowledged demand for AI infrastructure exceeds supply—reflected in a $553 billion RPO—creating near-term delivery constraints and requiring continued capacity expansion and partner coordination to meet customer demand.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarter — Strong Organic Growth
Q3 was the first quarter in over 15 years where both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD, reflecting broad-based acceleration across the business.
Read all positive updates
Company Guidance
The company guided that momentum will continue: Q3 marked the first quarter in >15 years with both organic total revenue and organic non‑GAAP EPS growing ≥20% in USD, and they say they are “overdelivering” on FY26 revenue and earnings while constantly raising the FY27 forecast; product/operational metrics cited include cloud applications revenue +11% (constant currency) to a $16.1B annualized run rate with Fusion ERP +14%, SCM +15%, HCM +15%, CX +6%, NetSuite +11% and industry SaaS +19% (cloud applications deferred revenue +14% vs in‑quarter revenue +11%); over 2,000 customers went live in Q3; multicloud database revenue grew 531% YoY and AI infrastructure revenue grew 243% YoY; RPO stands at $553B; OCI multicloud coverage is 33 Microsoft regions, 14 Google regions and 8 AWS regions live at quarter end (targeting 22 AWS regions by Q4 exit); they have secured >10 GW of power/data capacity coming online over the next three years with >90% partner‑funded, delivered >400 MW in Q3 with 90% of committed capacity on or ahead of schedule, and AI capacity gross margin ran above their 30% guidance at 32%; financing guidance remains up to $50B in debt/equity (with $30B raised so far) while maintaining an investment‑grade rating, and a TikTok US 15% equity stake will add a two‑month share of earnings in Q4 as non‑operating income.Oracle Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.08B | 57.40B | 52.96B | 49.95B | 42.44B | 40.48B |
| Gross Profit | 42.57B | 40.47B | 37.82B | 36.39B | 33.56B | 32.62B |
| EBITDA | 29.31B | 23.91B | 21.39B | 18.74B | 13.53B | 18.41B |
| Net Income | 16.21B | 12.44B | 10.47B | 8.50B | 6.72B | 13.75B |
Balance Sheet | ||||||
| Total Assets | 245.24B | 168.36B | 140.98B | 134.38B | 109.30B | 131.11B |
| Cash, Cash Equivalents and Short-Term Investments | 39.13B | 11.20B | 10.66B | 10.19B | 21.90B | 46.55B |
| Total Debt | 162.16B | 104.10B | 94.47B | 90.48B | 75.86B | 84.25B |
| Total Liabilities | 206.19B | 147.39B | 131.74B | 132.83B | 115.06B | 125.16B |
| Stockholders Equity | 38.49B | 20.45B | 8.70B | 1.07B | -6.22B | 5.24B |
Cash Flow | ||||||
| Free Cash Flow | -24.74B | -394.00M | 11.81B | 8.47B | 5.03B | 13.75B |
| Operating Cash Flow | 23.51B | 20.82B | 18.67B | 17.16B | 9.54B | 15.89B |
| Investing Cash Flow | -45.16B | -21.71B | -7.36B | -36.48B | 11.22B | -13.10B |
| Financing Cash Flow | 42.38B | 1.10B | -10.55B | 7.91B | -29.13B | -10.38B |
Oracle Technical Analysis
Positive
175.06
Price Trends
151.12
Positive
170.84
Positive
214.05
Negative
Market Momentum
4.35
Negative
67.32
Neutral
89.88
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 175.06 is above the 20-day moving average (MA) of 150.03, above the 50-day MA of 151.12, and below the 200-day MA of 214.05, indicating a neutral trend. The MACD of 4.35 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $3.03T | 21.63 | 33.61% | 0.44% | 17.87% | 29.63% | |
75 Outperform | $199.19B | 22.29 | 17.25% | 1.07% | 14.77% | 41.36% | |
74 Outperform | $146.33B | 71.18 | 15.49% | ― | 15.43% | -2.40% | |
74 Outperform | $113.05B | -686.05 | -4.68% | ― | 21.71% | -908.90% | |
71 Outperform | $144.41B | 27.05 | 12.37% | 0.63% | 9.58% | 21.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $464.17B | 27.89 | 57.35% | 1.00% | 14.87% | 29.81% |
* Technology Sector Average
ORCL
Oracle
171.83
24.02
16.25%
MSFT
Microsoft
414.44
-19.40
-4.47%
PANW
Palo Alto Networks
181.08
-7.05
-3.75%
CRM
Salesforce
183.82
-86.79
-32.07%
SAP
SAP AG
170.76
-129.97
-43.22%
CRWD
CrowdStrike Holdings
455.64
12.17
2.74%
Oracle Corporate Events
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 ...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Oracle Posts Strong Q3 Results on Surging AI Cloud
Positive
Mar 10, 2026
On March 10, 2026, Oracle reported an exceptionally strong third quarter for fiscal 2026, with total revenue rising 22% year over year to $17.2 billion and cloud revenue jumping 44% to $8.9 billion. GAAP earnings per share increased 24% to $1.27 a...
Private Placements and FinancingRegulatory Filings and Compliance
Oracle Issues Series D Mandatory Convertible Preferred Stock
Neutral
Feb 5, 2026
On February 2, 2026, Oracle Corporation entered into an underwriting agreement with a syndicate of major investment banks to issue and sell 100 million depositary shares, each representing a 1/2,000th interest in a share of its 6.50% Series D Mand...
Business Operations and StrategyPrivate Placements and Financing
Oracle Bolsters Financing with Major Senior Notes Issuance
Positive
Feb 4, 2026
On February 2, 2026, Oracle entered into an equity distribution agreement with a syndicate of major investment banks to launch an at-the-market offering program allowing the company to sell up to $20 billion of its common stock from time to time, ...
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.