Fundamental analysis · SEC EDGAR · as of 31/05/2026

Fundamental analysis of Oracle Corp

ORCL · NYSE · Technology

Fundamental quality

REASONABLE

66

out of 100

Oracle Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 40.2%) with wide margins (net margin 25.4%) and a business that keeps growing (10.7% a year). On fundamental quality it scores 66 out of 100, profiling it as a company of reasonable quality. Its weakest area is its financial strength (net debt 3.48× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Oracle is one of the world's largest enterprise-software companies, known for its databases. Its current growth leans on the cloud: renting infrastructure and applications to companies, including capacity for AI.

What will shape its future

  • The growth of its cloud (OCI) and capacity contracts for training AI.
  • Migrating its traditional database customers to its cloud.
  • Competition with the cloud giants (AWS, Azure, Google) and its high debt.

Breakdown by area

I.Growth
54

EPS growth: 5.1% · Revenue growth: 10.7%

II.Profitability
95

Net margin: 25.4% · ROE: 40.2% · ROIC: 11.6%

III.Financial health
38

Net debt/EBITDA: 3.48x · FCF: -35.2%

Source: SEC EDGAR · as of 31/05/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 72%
ROEbeats 82%
Growthbeats 39%
Cash generationbeats 1%
Less debtbeats 12%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Oracle Corp strengths

  • Exceptional net margin (25.4%), high even for its sector: the business is clearly profitable.
  • Revenue rising without interruption since 2021.
  • Revenue growing (10.7% annualized).

Oracle Corp risks and weaknesses

  • Shrinking margins: net margin has fallen from 34% to 25% in recent years.
  • Negative free cash flow: the business burns cash.
  • Its net debt has grown over the period.
  • Erratic free cash flow, with several years in the red.

Oracle Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202140,47913,74613,75254,147
202242,4406,7175,02854,476
202349,9548,5038,47080,716
202452,96110,46711,80776,415
202557,39912,443-39481,782
202667,35717,087-23,68698,252

Between 2021 and 2026, revenue went from $40,479M to $67,357M (+66%) and net income went from $13,746M to $17,087M (+24%). Meanwhile, its margins have narrowed (from 34% to 25%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Dividend

$2

per share, yearly

33.9% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Oracle Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Oracle Corp a good company to invest in?

In terms of business quality, Oracle Corp scores 66 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Oracle Corp a profitable company?

Very. Oracle Corp shows a net margin of 25.4% and an ROE of 40.2%, typical of a highly profitable business.

Does Oracle Corp have a lot of debt?

Yes, its leverage is high: net debt is 3.48 times its EBITDA, and it has been rising.

Is Oracle Corp growing?

Its revenue has grown 10.7% annualized in recent years and its earnings per share 5.1%, and without interruption since 2021.

Does Oracle Corp generate cash?

Over the last twelve months its free cash flow was negative.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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