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Oracle
(NYSE:ORCL)
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Rating:65Neutral
Price Target:
$156.00
▲(7.76% Upside)
Action:Reiterated
Date:09/15/26
ORCL scores in the mid-60s primarily due to strong profitability and very bullish, upgraded growth guidance from the latest earnings call, offset by heavy leverage and deeply negative recent free cash flow. Technical indicators are mixed and do not provide a strong near-term tailwind, while valuation appears reasonable rather than compelling.
Positive Factors
Cloud Infrastructure Growth
Rapid OCI growth, expanding capacity, and substantial contracted demand indicate that Oracle is gaining relevance in enterprise AI and cloud infrastructure. Continued RPO conversion can support multi-quarter revenue growth while deepening customer workloads and strengthening Oracle’s cloud position.
Negative Factors
Heavy Leverage
Oracle’s large debt burden reduces financial flexibility as the company funds an aggressive infrastructure buildout. Although debt relative to equity has improved from earlier levels, elevated leverage can amplify the effect of weaker operating conditions and leave less capacity for discretionary investment or unexpected cash needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Cloud Infrastructure Growth
Rapid OCI growth, expanding capacity, and substantial contracted demand indicate that Oracle is gaining relevance in enterprise AI and cloud infrastructure. Continued RPO conversion can support multi-quarter revenue growth while deepening customer workloads and strengthening Oracle’s cloud position.
Read all positive factors
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 (ORCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$427.56B
Dividend Yield1.41%
Average Volume (3M)30.83M
Price to Earnings (P/E)21.8
Beta (1Y)1.83
Revenue Growth21.62%
EPS Growth45.95%
CountryUS
Employees141,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)6.48
Shares Outstanding3,023,736,000
10 Day Avg. Volume28,250,030
30 Day Avg. Volume30,828,023
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)16.80
Price to Sales (P/S)10.60
P/FCF Ratio-30.15
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue8.15
Enterprise Value/Gross Profit12.74
Enterprise Value/Ebitda15.50
Forecast
1Y Price Target
$242.62Price Target Upside67.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering33
EPS Forecast (FY)8.14
Revenue Forecast (FY)$90.44B
Oracle Business Overview & Revenue Model
Company Description
Oracle Corporation, a global technology giant, provides a comprehensive suite of enterprise information technology solutions worldwide. A core part of its portfolio comprises cloud-based software-as-a-service (SaaS) applications, including the Ora...
How the Company Makes Money
Oracle generates revenue primarily from selling cloud services and software and from providing related support and professional services. A major portion of its business is subscription-based: (1) Cloud services and license support, which includes...
Oracle Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 14, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic, characterized by record revenue, accelerating cloud infrastructure growth, robust AI demand and utilization, substantial contract activity, expanding multi-cloud capabilities, strong applications and AI adoption, and upgraded fiscal 2027 guidance. The principal challenges were the expected gross-margin decline during the infrastructure ramp, negative free cash flow, elevated CapEx, the absence of a specific positive free cash flow timeline, and comparatively slower NetSuite growth. Highlights significantly outweighed the lowlights.Positive Updates
Record Revenue and Sequential Q1 Growth
Q1 total revenue reached a record $19.3 billion, up 30% year over year in US dollars. For the first time, Q1 total revenue grew sequentially, compared with the historical pattern of a lighter Q1 following record Q4 results.
Negative Updates
Gross Margin Decline During Infrastructure Ramp
Gross margin declined as expected due to the ramp-up of data centers and the acceleration of infrastructure revenue. Oracle said infrastructure is by nature a lower-gross-margin business than software. Gross margin was expected to flatten as the ramp-up finishes, although the company did not provide specific guidance.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Revenue and Sequential Q1 Growth
Q1 total revenue reached a record $19.3 billion, up 30% year over year in US dollars. For the first time, Q1 total revenue grew sequentially, compared with the historical pattern of a lighter Q1 following record Q4 results.
Read all positive updates
Company Guidance
For Q2 27, Oracle expects total revenue growth of between 30% to 34% in US dollars, cloud revenue growth of between 65% to 71% in US dollars, and non-GAAP EPS between $1.85 and $1.93, up between 21% to 25% in US dollars, excluding the gains from Ampere booked in Q2 of last year; for the full year, it upgraded guidance to at least $90 billion in total revenues, a year over year increase of +34%, and $8.10 for non-GAAP EPS, while continuing to anticipate $90 billion to $95 billion in CapEx, with not more than $70 billion in net cash CapEx, and expects around half of RPO to convert into sales over the next 36 months.Oracle Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.78B | 67.36B | 57.40B | 52.96B | 49.95B | 42.44B |
| Gross Profit | 45.90B | 43.92B | 40.47B | 37.82B | 36.39B | 33.56B |
| EBITDA | 37.72B | 33.49B | 23.91B | 21.39B | 18.74B | 13.53B |
| Net Income | 18.92B | 17.09B | 12.44B | 10.47B | 8.50B | 6.72B |
Balance Sheet | ||||||
| Total Assets | 303.26B | 261.76B | 168.36B | 140.98B | 134.38B | 109.30B |
| Cash, Cash Equivalents and Short-Term Investments | 37.08B | 31.89B | 11.20B | 10.66B | 10.19B | 21.90B |
| Total Debt | 155.93B | 156.19B | 104.10B | 94.47B | 90.48B | 75.86B |
| Total Liabilities | 236.06B | 218.70B | 147.39B | 131.74B | 132.83B | 115.06B |
| Stockholders Equity | 66.77B | 42.51B | 20.45B | 8.70B | 1.07B | -6.22B |
Cash Flow | ||||||
| Free Cash Flow | -28.72B | -23.69B | -394.00M | 11.81B | 8.47B | 5.03B |
| Operating Cash Flow | 46.94B | 31.98B | 20.82B | 18.67B | 17.16B | 9.54B |
| Investing Cash Flow | -71.72B | -51.85B | -21.71B | -7.36B | -36.48B | 11.22B |
| Financing Cash Flow | 53.19B | 40.28B | 1.10B | -10.55B | 7.91B | -29.13B |
Oracle Technical Analysis
Negative
144.76
Price Trends
145.22
Negative
155.06
Negative
160.51
Negative
Market Momentum
-1.71
Negative
48.71
Neutral
53.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORCL, the sentiment is Negative. The current price of 144.76 is above the 20-day moving average (MA) of 141.57, below the 50-day MA of 145.22, and below the 200-day MA of 160.51, indicating a bearish trend. The MACD of -1.71 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 53.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORCL.
Oracle Risk Analysis
Oracle disclosed 35 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.97T | 29.73 | 33.22% | 0.68% | 17.79% | 31.42% | |
78 Outperform | $40.58B | 137.36 | 4.26% | ― | 11.22% | 74.46% | |
77 Outperform | $20.19B | 13.40 | -395.76% | ― | 12.44% | 692.05% | |
69 Neutral | $31.09B | 528.31 | 2.00% | ― | 25.45% | ― | |
66 Neutral | $128.52B | -619.10 | -13.86% | ― | 33.53% | -72.17% | |
65 Neutral | $427.56B | 21.84 | 42.58% | 1.41% | 21.62% | 45.95% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ORCL
Oracle
141.40
-162.54
-53.48%
MSFT
Microsoft
535.07
25.22
4.95%
NTNX
Nutanix
74.63
5.73
8.32%
OKTA
Okta
232.13
141.99
157.52%
MDB
MongoDB
385.93
66.72
20.90%
NET
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360.93
138.37
62.17%
Oracle Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Oracle’s Larry Ellison Cancels Planned Stock Sale Program
Positive
Sep 14, 2026
On September 12, 2026, Oracle announced that Executive Chair and Chief Technology Officer Larry Ellison has cancelled his prearranged Rule 10b5-1 trading plan that would have facilitated sales of Oracle stock. No shares were sold before the plan&#...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Oracle Q1 Results Highlight Surging Cloud and AI Growth
Positive
Sep 10, 2026
On September 10, 2026, Oracle reported strong Q1 fiscal 2027 results, with total revenue up 30% year-on-year to $19.3 billion and cloud revenue surging 62% to $11.6 billion, led by a 121% jump in infrastructure-as-a-service. GAAP EPS climbed 55% t...
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.