Oracle Corporation (ORCL) AI Stock Analysis

Oracle Corporation delivers enterprise information technology products and services worldwide. Its offerings include Oracle Cloud, providing software as a service applications such as Oracle Fusion Cloud ERP, enterprise performance management, supply chain management, human capital management, advertising solutions, and NetSuite. Oracle also provides cloud-based industry solutions, application licenses, and support services. The company develops core infrastructure technologies including Oracle Database, Java development language, middleware tools, Oracle Autonomous Database, and MySQL HeatWave, alongside cloud computing, storage, and networking. Additionally, Oracle offers engineered systems, enterprise servers, and storage hardware, complemented by consulting and customer services for enterprise and government clients.

Oracle's annual revenue rose from $42.44B in FY2022 to $67.36B in FY2026, reflecting a 5-year revenue CAGR of 10.7%. Over that timeframe, net income grew from $6.72B to $17.09B, expanding net margin from 15.8% to 25.4%, while gross margin contracted from 79.1% to 65.2%. For the trailing twelve months, revenue reached $71.78B with an operating margin of 35.6% and EPS of $6.38. In the latest quarter ended August 31, 2026, Oracle posted year-over-year quarterly revenue growth of 29.6% and quarterly earnings growth of 54.5%.

As of August 31, 2026, Oracle held $37.08B in cash and short-term investments against $155.93B in total debt, resulting in net debt of $118.85B and a debt-to-equity ratio of 2.34. The company's current ratio stood at 1.17, with total assets of $303.26B and shareholders' equity of $66.77B. Operating cash flow reached $31.98B in FY2026, but capital expenditures of $55.66B drove free cash flow to -$23.69B. Cash outflows in FY2026 also included $5.79B in dividends paid and $206.0M in share buybacks.

Oracle trades at a trailing P/E of 20.1x and a forward P/E of 17.8x, both below the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. Its enterprise value of $560.92B represents an EV to EBITDA multiple of 14.9x, compared to the peer median of 19.9x, while its price-to-sales ratio of 5.4x trails the peer median of 6.3x. The stock closed at $128.23, delivering a 1-year return of -58.5% compared to 16.8% for the S&P 500 (SPY), and a 5-year return of 43.9% versus 83.0% for the index.

Oracle pays an annual forward dividend of $2.00 per share, which equates to a dividend yield of 1.56% and a payout ratio of 26.8%. The dividend is distributed on a quarterly basis and has been paid for 18 consecutive years, achieving an annualized 5-year dividend growth rate of 14.6%. The company's last ex-dividend date was October 9, 2026.

Wall Street analysts hold 28 Strong Buy, 7 Buy, 7 Hold, 0 Sell, and 1 Strong Sell recommendations on the stock. The mean price target is $237.36, representing an 85.1% premium over the last close of $128.23. For the fiscal year ending May 31, 2027, consensus estimates project revenue of $90.42B and EPS of $8.14. Oracle beat EPS estimates in each of the last 4 quarters, and its next earnings date is December 9, 2026.

This page is an AI-written research summary of Oracle Corporation (ORCL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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