US · NYSE · ORCL
Oracle (ORCL) stock analysis: valuation and financials
Technology · Computer Software: Prepackaged Software
$129.59 +1.1% Price as of Oct 19, 2026
Strong franchise: 17.4% revenue growth, 25.4% net margin, $37.1B net cash, but capex at 105% of revenue leaves FCF at -$28.7B and base case implies -8% upside. Neutral.
- Market cap
- $392.9B
- P/E
- 20.8x
- EV/Sales
- 5.0x
- FCF yield
- -7.3%
- 52-week range
- $114.99 – $313.00
- Next earnings
- Dec 9, 2026
Research as of Oct 20, 2026
Business quality scorecard
- Growth69
- Profitability96
- Cash flow53
- Balance sheet51
- Capital allocation73
- Innovation44
- Valuation39
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Enterprises, governments and partners pay recurring subscriptions for OCI infrastructure, Fusion/NetSuite cloud applications and support renewals; cloud and software generates 87% of revenue and 91% of segment profit at a 58.9% operating margin.
Financials by year
| FY2022Jun 2021–May 2022 | FY2023Jun 2022–May 2023 | FY2024Jun 2023–May 2024 | FY2025Jun 2024–May 2025 | FY2026Jun 2025–May 2026 | |
|---|---|---|---|---|---|
| Revenue | $42.4B | $50.0B | $53.0B | $57.4B | $67.4B |
| Revenue growth | +4.8% | +17.7% | +6.0% | +8.4% | +17.3% |
| Operating margin | 25.7% | 26.2% | 29.0% | 30.8% | 30.6% |
| Net income | $6.7B | $8.5B | $10.5B | $12.4B | $17.1B |
| Free cash flow | $5.0B | $8.5B | $11.8B | -$394.0M | -$23.7B |
| FCF margin | 11.8% | 17.0% | 22.3% | -0.7% | -35.2% |
Amounts in USD · What is free cash flow?
Margins FY2026 operating margin 30.6% vs 30.8% (-21bps) on 17.4% revenue growth; TTM 32.1%, Q1 FY2027 34.8% vs 28.7%. Net margin 25.4% on a 12.6% tax rate. Gross margin not disclosed.
- Cash flow ConcernOperating cash flow $32.0B vs net income $17.1B in FY2026 (1.79x conversion); TTM operating cash flow $46.9B on $18.9B net income, so earnings remain cash-backed.
- Debt LowNet cash of $37.1B: $31.3B cash plus $0.6B short-term investments against $7.2B total debt, giving net debt/EBITDA of -1.14x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $37.1B
- Total debt
- —
- Net cash
- $37.1B
- Interest coverage
- 4.5x
- Current ratio
- 1.2x
As of Aug 31, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution is delivering: FY2026 revenue $67.4B, up 17.4%, net margin 25.4%, ROIC 91.4%, operating margin 30.6%; new CEOs inherited strong cloud momentum.
- Credibility HighRevenue beat in every guided period: FY2026 $67.36B versus $67B guide; Q1 FY2027 growth 29.6% versus 27%-29% guide.
Of 3 guided figures checked: 3 beat, 0 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $129.59
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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