One-glance verdict
Within fair range
$68.96 our estimate vs market $158.78
Wall Street consensus: $242.05 (251.0% higher than our fair-value estimate)
130% above our estimate
Fundamentals snapshot
Oracle Corporation
ORCL · NYQ · Technology · Software - Infrastructure
Current price
$158.78
52-week range
$114.50 - $345.72
Market cap
$457.36B
Balance sheet
Distressed
4.88x Stretched
Net debt $135.54B. 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 17.3% last year.
- Reward Returns 53.4% 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 essential software that helps large companies and governments run their core operations, from managing their finances to their supply chain (the entire process of making and delivering a product or service). It makes most of its money from cloud subscriptions and ongoing support contracts, which creates predictable recurring revenue (income that comes in regularly, like a subscription). Because its systems are so deeply embedded in how these organizations operate, they become a critical and long-term partner.
How the company got here
Oracle was founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, who were inspired by a research paper on a new way to organize and retrieve large amounts of data. Their first product, the Oracle database, was the first of its kind to be sold commercially and quickly became popular, with the U.S. Air Force as an early customer. The company grew aggressively over the decades, largely by acquiring other software companies to expand its offerings, including high-profile purchases like PeopleSoft, Siebel, and Sun Microsystems. This strategy transformed Oracle from a database specialist into a broad-based provider of technology for businesses, eventually leading it to compete in the modern cloud computing market.
What it actually does
Oracle provides the behind-the-scenes technology that helps large organizations like businesses, governments, and schools run their operations. Think of it like the digital plumbing and toolbox for a big company; Oracle sells everything from databases that store critical information to complex software that manages finances, human resources, and supply chains (the entire process of making and delivering a product). It also rents out computing power and storage through its cloud services, which is like a company using Netflix for its computing needs instead of buying and running its own servers. Essentially, Oracle's products help companies manage their data and automate their most important business processes.
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: selling access to its cloud services and selling traditional software licenses. The cloud part includes renting out computing power and storage (known as Oracle Cloud Infrastructure or OCI) and selling subscriptions to its powerful business applications over the internet, such as software for managing finances or human resources. The license part involves selling the rights for customers to use Oracle's famous database software and other applications on their own computers, which also generates steady revenue from ongoing support fees.
Hardware
This segment, which brings in a smaller portion of the company's total revenue, involves selling physical computer equipment. This isn't like selling laptops to everyday consumers; instead, Oracle sells powerful servers and storage systems specifically designed to run its own software at peak performance. Companies that need extremely high reliability and speed for their critical data, like banks or large retailers, buy these specialized machines, known as 'engineered systems', directly from Oracle. This business line was significantly expanded when Oracle acquired Sun Microsystems in 2010.
Services
This part of the business focuses on providing expert help to Oracle's customers, making up a relatively small slice of overall revenue. When a large company buys Oracle's complex software or cloud services, it often needs help installing, configuring, and maintaining it. Oracle's services division provides consulting (expert advice) and advanced customer support to ensure these powerful tools work correctly and efficiently for the customer's specific needs. This can also include training customer employees on how to use the sophisticated Oracle software.
What management is betting on now
Oracle's leadership is heavily focused on expanding its cloud infrastructure (the basic hardware and software for cloud computing) to compete directly with giants like Amazon and Microsoft. A major part of this strategy is centered on Artificial Intelligence (AI), with the company building massive, powerful data centers designed to train and run advanced AI models for its customers. Management believes that because most of the world's important business data is already stored in Oracle databases, the company is in a unique position to help businesses use AI to analyze their private data securely. This involves embedding AI into all its cloud applications and creating new tools, particularly in industries like healthcare, to automate processes and help companies make smarter decisions.
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 Q1
$5.12B
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
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
Revenue
$13.31B
Net income
$2.93B
Diluted EPS
1.03
Operating cash flow
$7.43B
Free cash flow
$5.12B
Fetching…
Sources
Is it cheap or expensive?
Fair value $68.96 vs current price $158.78
Wall Street consensus is the average analyst price target: $242.05 (251.0% higher than our fair-value estimate).
Our most-likely fair value is $68.96 a share — about 56.6% away from today's price of $158.78, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $135.5B. Interest coverage 4.9x.
Net debt
$135.54B
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 $167.43B 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 $11.55B 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 17.3% last year.
-
Returns 53.4% 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)
27.23x
Forward P/E
14.48x
P/B
12.18x
P/S
6.79x
EV/EBITDA
19.62x
PEG ratio
0.87x
Profitability
How much profit each dollar creates
Gross margin
65.8%
Operating margin
36.2%
Net margin
25.4%
ROE
53.4%
ROA
6.5%
Health
Liquidity and balance-sheet strength
Debt / equity
3.89x
Current ratio
1.11x
Quick ratio
1.01x
Total debt
$167.43B
Total cash
$31.89B
Growth
How the business has been compounding
Revenue TTM
$67.36B
Revenue 5Y CAGR
12.2%
EPS TTM
5.83
EPS 5Y CAGR
23.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$31.98B
Free CF TTM
$-23.69B
FCF margin
-35.2%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
34.3%
Last ex-div date
2026-07-10