One-glance verdict
Within fair range
$99.92 our estimate vs market $142.30
Wall Street consensus: $237.97 (138.2% higher than our fair-value estimate)
42% above our estimate
Fundamentals snapshot
Oracle Corporation
ORCL · NYQ · Technology · Software - Infrastructure
Current price
$142.30
52-week range
$114.50 - $322.54
Market cap
$431.38B
Balance sheet
Distressed
4.88x Stretched
Net debt $132.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.6% last year.
- Reward Returns 41.2% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 54.8% over 3 years.
What this company does
Oracle Corporation
Oracle provides the digital backbone for large organizations like companies and governments, selling software and cloud services that manage everything from finances to the supply chain (the entire process of making and delivering a product). The company now makes most of its money from cloud subscriptions and support services, which creates recurring revenue (predictable income that comes in regularly, like a utility bill). This is important because investors often view this steady, subscription-based income as more stable and reliable than one-time software sales.
How the company got here
Founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, Oracle's first big success was creating one of the first commercial relational databases, a new way to organize and access large amounts of information. This database software became the foundation of the company and a dominant product in the tech world. Over the years, Oracle has grown significantly by acquiring other technology companies, such as PeopleSoft for human resources software, Siebel for customer relationship management, and Sun Microsystems, which gave them the Java programming language and hardware products. More recently, Oracle has been shifting its focus to cloud computing and made its largest acquisition ever, buying the electronic health records company Cerner to expand its presence in the healthcare industry.
What it actually does
Oracle provides the underlying technology that helps businesses and organizations operate. Think of it like the digital plumbing and filing cabinets for a company; it stores, manages, and secures vast amounts of information, from customer orders and financial records to employee data and medical histories. You don't buy Oracle products at a store, but many of the businesses you interact with every day rely on them to run their operations smoothly. This includes everything from the software that manages a company's finances to the cloud infrastructure that allows them to run their applications over the internet.
Cloud and License
This is Oracle's largest and most important business, making up the vast majority of its revenue. It has two main parts: cloud services and software licenses. The cloud business, known as Oracle Cloud Infrastructure (OCI), provides computing power, storage, and networking services over the internet, similar to Amazon Web Services or Microsoft Azure. The software side includes their famous database software and a wide range of business applications for things like finance, human resources, and supply chain management (the process of getting products from the factory to the customer). Customers pay either a subscription fee to use the cloud services or a one-time fee for a software license with ongoing charges for support.
Hardware
This part of the company sells physical computer equipment. This isn't like the laptops or phones you buy at a store; instead, Oracle creates powerful, specialized computer systems, servers, and storage solutions designed to work very efficiently with its own software. A key product line is Oracle Engineered Systems, which are pre-built and optimized to run Oracle's database and business applications at high speeds. This segment is a smaller part of Oracle's overall business.
Services
This segment provides the human expertise to help customers get the most out of Oracle's products. This includes consulting services to help businesses plan and set up their Oracle software and hardware, as well as advanced customer support to troubleshoot any issues that arise. They also offer training through Oracle University to teach people how to use their technology effectively. This is a smaller portion of Oracle's total revenue but plays an important role in keeping customers successful with their products.
What management is betting on now
Oracle's current strategy is heavily focused on expanding its cloud infrastructure to compete more aggressively with larger rivals and to meet the high demand for artificial intelligence (AI) computing. They are embedding AI capabilities across their entire product line, from their databases to their business applications, to make them smarter and more automated. Another major priority is the healthcare industry, following the massive acquisition of Cerner (now Oracle Health), with the goal of modernizing healthcare information systems. The company is also focused on moving its existing on-premise customers (those who run Oracle software on their own computers) to its cloud-based applications.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$-2.67B
FY2025 Q3
$71.00M
FY2025 Q4
$-2.92B
FY2026 Q1
$-362.00M
FY2026 Q2
$-9.97B
FY2026 Q3
$-11.48B
FY2026 Q4
$-1.87B
FY2027 Q1
$-5.40B
Revenue
$19.34B
Net income
$4.76B
Diluted EPS
1.56
Operating cash flow
$23.10B
Free cash flow
$-5.40B
Fetching…
Sources
Revenue
$19.18B
Net income
$4.30B
Diluted EPS
1.45
Operating cash flow
$14.62B
Free cash flow
$-1.87B
Fetching…
Sources
Revenue
$17.19B
Net income
$3.72B
Diluted EPS
1.27
Operating cash flow
$7.15B
Free cash flow
$-11.48B
Fetching…
Sources
Revenue
$16.06B
Net income
$6.13B
Diluted EPS
2.10
Operating cash flow
$2.07B
Free cash flow
$-9.97B
Fetching…
Sources
Revenue
$14.93B
Net income
$2.93B
Diluted EPS
1.01
Operating cash flow
$8.14B
Free cash flow
$-362.00M
Fetching…
Sources
Revenue
$15.90B
Net income
$3.43B
Diluted EPS
1.19
Operating cash flow
$6.16B
Free cash flow
$-2.92B
Fetching…
Sources
Revenue
$14.13B
Net income
$2.94B
Diluted EPS
1.02
Operating cash flow
$5.93B
Free cash flow
$71.00M
Fetching…
Sources
Revenue
$14.06B
Net income
$3.15B
Diluted EPS
1.10
Operating cash flow
$1.30B
Free cash flow
$-2.67B
Fetching…
Sources
Is it cheap or expensive?
Fair value $99.92 vs current price $142.30
Wall Street consensus is the average analyst price target: $237.97 (138.2% higher than our fair-value estimate).
Our most-likely fair value is $99.92 a share — about 29.8% away from today's price of $142.30, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $132.1B. Interest coverage 4.9x.
Net debt
$132.07B
Interest coverage
4.88x
Oracle Corporation's profit covers its interest bill about 4.9 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
ORCL
BASELINE
Oracle Corporation
Total debt $169.14B Interest coverage 4.88x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x +943% vs ORCL Carries about 10.4x more debt cushion than ORCL.
Total debt $11.19B Interest coverage 19.55x +301% vs ORCL Carries about 4.0x more debt cushion than ORCL.
Total debt $251.64B Interest coverage 35.17x +621% vs ORCL Carries about 7.2x more debt cushion than ORCL.
Total debt $65.27B Interest coverage 6.46x +32% vs ORCL Carries about 1.3x more debt cushion than ORCL.
What you should know
The case for and against ORCL
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.6% last year.
-
Returns 41.2% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 54.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.66x
Forward P/E
12.94x
P/B
6.96x
P/S
6.01x
EV/EBITDA
16.49x
PEG ratio
0.77x
Profitability
How much profit each dollar creates
Gross margin
64.0%
Operating margin
35.6%
Net margin
26.4%
ROE
41.2%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
2.52x
Current ratio
1.17x
Quick ratio
1.02x
Total debt
$169.14B
Total cash
$37.08B
Growth
How the business has been compounding
Revenue TTM
$71.78B
Revenue 5Y CAGR
12.2%
EPS TTM
6.57
EPS 5Y CAGR
23.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$46.94B
Free CF TTM
$-23.69B
FCF margin
-33.0%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
31.4%
Last ex-div date
2026-10-09