Oracle (ORCL) AI Stock Analysis

• Market Cap: $777.30B
• Dividend Yield: 0.68%
• Average Volume (3M): 33.80M
• Price to Earnings (P/E): 64.8
• Beta (1Y): 1.43
• Revenue Growth: 9.67%
• EPS Growth: 11.23%
• Country: US
• Employees: 159,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.47
• Shares Outstanding: 2,850,792,700
• 10 Day Avg. Volume: 24,792,342
• 30 Day Avg. Volume: 33,796,143
• PEG Ratio: 2.17
• Price to Book (P/B): 22.57
• Price to Sales (P/S): 8.04
• P/FCF Ratio: -1.17K
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 12.86
• Enterprise Value/Gross Profit: 18.46
• Enterprise Value/Ebitda: 32.76
• 1Y Price Target: $354.13
• Price Target Upside: 26.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 36

• Rating: 66 Neutral
• Price Target: $297.00 ▲(6.04% Upside)

Oracle's strong earnings call, highlighting growth in cloud services and strategic AI positioning, is a major positive factor. However, high debt levels, negative free cash flow, and a high P/E ratio present significant risks. Technical indicators suggest mixed short-term momentum.

Positive Factors

Cloud Revenue Growth

Oracle's significant growth in cloud revenue underscores its strong market position and ability to capitalize on the increasing demand for cloud services, which is a key driver for long-term growth.

AI Strategic Positioning

Oracle's strategic partnerships in AI workloads position it as a leader in this rapidly growing sector, enhancing its competitive advantage and future revenue potential.

Multi-Cloud Database Growth

The exponential growth in multi-cloud database revenue highlights Oracle's successful integration with major cloud platforms, expanding its market reach and customer base.

Negative Factors

High Debt Levels

Oracle's high leverage could pose financial risks, limiting its ability to invest in growth opportunities and making it vulnerable to interest rate fluctuations.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could constrain Oracle's capacity to fund operations and strategic initiatives without additional financing.

Slight Decline in Software Revenue

The decline in software revenue suggests challenges in Oracle's traditional business segments, which may impact overall growth if not addressed.

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 demonstrates strong profitability with high margins and return on equity. However, high debt levels and negative free cash flow present potential risks, necessitating careful management of leverage and cash flow for sustained financial health.

Income Statement

Oracle's income statement shows strong profitability with a high gross profit margin of 77.23% and a solid net profit margin of 21.08% for TTM (Trailing-Twelve-Months). Revenue growth is moderate at 2.82% TTM, indicating steady expansion. EBIT and EBITDA margins are robust at 30.50% and 39.26% respectively, reflecting efficient operations. Overall, Oracle demonstrates strong profitability and stable growth, though revenue growth could be more aggressive.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.36 TTM, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity is impressive at 66.28%, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing. While profitability is strong, the high leverage warrants caution.

Cash Flow

Oracle's cash flow statement shows a concerning negative free cash flow of -$5.88 billion TTM, despite a significant growth rate of 1392.39%. The operating cash flow to net income ratio is moderate at 0.54, indicating decent cash generation relative to net income. However, the negative free cash flow to net income ratio of -0.27 highlights potential liquidity issues. While operating cash flow is strong, the negative free cash flow is a critical area to address.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.02B	57.40B	52.96B	49.95B	42.44B	40.48B
Gross Profit	41.11B	40.47B	37.82B	36.39B	33.56B	32.62B
EBITDA	23.17B	23.91B	21.39B	18.74B	13.53B	18.41B
Net Income	12.44B	12.44B	10.47B	8.50B	6.72B	13.75B
Balance Sheet
Total Assets	180.45B	168.36B	140.98B	134.38B	109.30B	131.11B
Cash, Cash Equivalents and Short-Term Investments	11.01B	11.20B	10.66B	10.19B	21.90B	46.55B
Total Debt	105.41B	104.10B	94.47B	90.48B	75.86B	84.25B
Total Liabilities	155.78B	147.39B	131.74B	132.83B	115.06B	125.16B
Stockholders Equity	24.15B	20.45B	8.70B	1.07B	-6.22B	5.24B
Cash Flow
Free Cash Flow	-5.88B	-394.00M	11.81B	8.47B	5.03B	13.75B
Operating Cash Flow	21.53B	20.82B	18.67B	17.16B	9.54B	15.89B
Investing Cash Flow	-27.66B	-21.71B	-7.36B	-36.48B	11.22B	-13.10B
Financing Cash Flow	5.89B	1.10B	-10.55B	7.91B	-29.13B	-10.38B

Oracle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 280.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 280.07 is below the 20-day moving average (MA) of 289.06, above the 50-day MA of 273.82, and above the 200-day MA of 201.86, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 10.82 is Positive, 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	$3.85T	37.95	33.28%	0.64%	14.93%	15.50%
ADBE	79 Outperform	$148.22B	22.06	52.87%	―	10.69%	35.19%
PANW	78 Outperform	$145.12B	132.75	17.45%	―	14.87%	-57.43%
PLTR	71 Outperform	$416.32B	599.80	15.30%	―	38.79%	78.37%
SNPS	67 Neutral	$84.39B	35.71	6.61%	―	3.21%	31.64%
ORCL	66 Neutral	$777.30B	64.84	71.15%	0.68%	9.67%	11.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Oracle Corporate Events

Oracle Completes $18 Billion Notes Issuance

On September 26, 2025, Oracle Corporation completed the issuance and sale of $18 billion in aggregate principal amount of notes with varying maturities and interest rates. The proceeds from this issuance are intended for general corporate purposes, including capital expenditures, debt repayment, and potential investments or acquisitions, which could impact Oracle’s financial strategy and market positioning.

The most recent analyst rating on (ORCL) stock is a Buy with a $364.00 price target. To see the full list of analyst forecasts on Oracle stock, see the ORCL Stock Forecast page.

Oracle Announces New Co-CEOs to Drive AI Growth

On September 22, 2025, Oracle announced significant management changes with the promotion of Clay Magouyrk and Mike Sicilia to Chief Executive Officers, effective immediately. These changes reflect Oracle’s strategic focus on advancing its AI and cloud infrastructure capabilities. Magouyrk, with his experience in Oracle Cloud Infrastructure, and Sicilia, with his expertise in industry applications, are expected to drive Oracle’s growth in the AI era. Safra Catz transitions to Executive Vice Chair of the Board, while Doug Kehring becomes the Principal Financial Officer. These leadership changes aim to position Oracle for continued success in the rapidly evolving technology landscape.

The most recent analyst rating on (ORCL) stock is a Buy with a $360.00 price target. To see the full list of analyst forecasts on Oracle stock, see the ORCL Stock Forecast page.

Oracle’s Earnings Call Highlights Cloud Growth and AI Leadership

Oracle’s latest earnings call painted a highly positive picture, emphasizing substantial growth in its cloud services, particularly in AI workloads and multi-cloud databases. Despite facing challenges such as negative free cash flow and a slight decline in software revenue, the company showcased a strong market positioning with ambitious future revenue projections and a significant increase in remaining performance obligations (RPO).

Oracle Reports Strong Cloud Revenue Growth

Oracle Corporation, a leading provider of integrated cloud applications and platform services, has released its financial results for the first quarter of fiscal year 2026, showcasing significant growth in its cloud business. The company, known for its robust cloud infrastructure and software solutions, operates primarily in the technology sector with a strong emphasis on cloud computing and enterprise software.

Oracle Reports Strong Q1 2026 Cloud Revenue Growth

Oracle announced its fiscal 2026 first-quarter financial results, highlighting a significant increase in cloud revenue, which rose by 28% to $7.2 billion. The company also reported a remarkable 359% growth in remaining performance obligations to $455 billion, driven by multi-billion-dollar contracts with key customers, positioning Oracle for substantial future growth in cloud infrastructure and AI services.

The most recent analyst rating on (ORCL) stock is a Hold with a $240.00 price target. To see the full list of analyst forecasts on Oracle stock, see the ORCL Stock Forecast page.