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$126.41
Market Capi
$358B
Growth-adj P/E (3-yr hist)i
1.7x
Growth-adj P/E (3-yr proj)i
0.5x
P/S 26Ei
9.6x
P/S 28Ei
2.8x
EV/EBIT 26Ei
26x
EV/EBIT 28Ei
11x
P/E 26Ei
39x
P/E 28Ei
14x
P/S 26Ei
9.6x
EV/EBIT 26Ei
26x
P/E 26Ei
39x
P/S 28Ei
2.8x
EV/EBIT 28Ei
11x
P/E 28Ei
14x
Revenue
2026E
$67B
Gross Margini
71%
Hist. CAGRi
11%
Proj. CAGRi
31%
EBIT
2026E
$29B
Op. Margini
31%
Hist. CAGRi
4.3%
Proj. CAGRi
38%
Net profit
2026E
$17B
Net Margini
22%
Hist. CAGRi
23%
Proj. CAGRi
30%
Business Model
Recent Developments
Average Targeti
$251.85+80%
Consensusi
Buy
43 analysts covering
Net debti
$133B
Div. Yieldi
1.6%
Dilutioni
2.0%
Market Capi
$358B
P/E 26Ei
39x
Adj. P/E (fwd.)i
0.5x
Revenue 26E
$67B
Proj. CAGRi
31%
Gross Margini
71%
EBIT 26E
$29B
Proj. CAGRi
38%
Op. Margini
31%
Net Profit 26E
$17B
Proj. CAGRi
30%
Net Margini
22%
Average Targeti
$251.85+80%
Consensusi
Buy
43 analysts covering
Profile
Oracle is the world's largest enterprise software company, selling database technology, cloud applications, and now cloud infrastructure. Revenue is organized into three broad categories:
The mix is actively shifting toward cloud: Oracle Cloud Infrastructure (OCI) is the fastest-growing segment, and cloud applications — Fusion ERP, NetSuite, Cerner Health — are collectively approaching a $16 billion annualized run rate.
Industry
Oracle sells primarily to large enterprises and government entities across virtually every vertical: financial services, healthcare (via Cerner), manufacturing, retail, and public sector. The Americas contribute roughly 63% of revenue, EMEA 24%, and Asia-Pacific 13%. The market is highly competitive — AWS, Azure, Google Cloud, SAP, and Salesforce all overlap in various segments — but Oracle benefits from deep entanglement in customers' core operational systems, which creates strong retention.
Key metrics
Economic moat
Switching costs are Oracle's deepest moat. Enterprise customers run Oracle Database and Oracle ERP at the core of their operations; migrating off requires multi-year re-implementation projects with significant risk, making churn rare even when pricing rises. The Cerner acquisition added healthcare data lock-in at scale. On the infrastructure side, OCI is building a second moat through long-term contracted capacity — the $553 billion RPO reflects demand that is locked in before capacity is even built, a structural advantage that mirrors the hyperscaler flywheel.
Larry Ellison
Ellison co-founded Oracle in 1977 and built it into the world's dominant enterprise database company over five decades. He stepped back from the CEO role he had held since founding but remains Chairman of the Board and Chief Technology Officer, setting technical direction for OCI and Oracle's AI strategy. His continued deep involvement — and his large ownership stake — means Oracle is still functionally founder-led despite the formal management transition.
Clay Magouyrk & Mike Sicilia
In September 2025, Oracle promoted Clay Magouyrk and Mike Sicilia to serve as co-Chief Executive Officers. Magouyrk previously led Oracle Cloud Infrastructure from its inception, having joined Oracle in 2014 from Amazon Web Services as a founding architect of OCI's Gen2 platform — making him the architect of the very product now driving Oracle's hypergrowth. Sicilia led Oracle's industry cloud vertical strategy. The co-CEO structure reflects the dual priorities of infrastructure scale (Magouyrk) and cloud application depth (Sicilia).
Safra Catz
Catz served as Oracle's CEO from 2014 through September 2025, overseeing the company's transformation into a cloud company and the $28 billion acquisition of Cerner in 2022. She transitioned to Executive Vice Chair of the Board while Ellison has described their 26-year operating partnership as continuing in the new structure. She was also appointed to the U.S. President's Council of Advisors on Science and Technology (PCAST) in 2026.
Hilary Maxson
Maxson became Chief Financial Officer in April 2026. She stepped into the role at a pivotal moment — Oracle is deploying $50 billion in annual capex and raising tens of billions in external financing to fund the OCI buildout, making the CFO position unusually consequential to investor confidence.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash FlowFree cash flow year-over-year growth labels for 2026E, 2027E, and 2028E are hidden because the prior comparison year is missing, zero, or negative. Growth rates from missing or non-positive bases are not meaningful.
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Oracle's Q3 FY2026 total revenue grew 22% year-over-year to $17.2 billion, the company's strongest organic growth in over 15 years, with both revenue and non-GAAP EPS expanding at 20%+ simultaneously for the first time since 2010.
Cloud infrastructure revenue surged 243% year-over-year, while total cloud revenues rose 44% to $8.9 billion. Cloud applications grew at a more measured 11%, reaching a $16.1 billion annualized run rate.
Adjusted EPS of $1.79 beat consensus estimates, driven by operating leverage in cloud infrastructure as utilization rates climbed on contracted AI workloads.
Management guided Q4 FY2026 revenue growth of 19–20% and raised full-year capex guidance by $15 billion to $50 billion, signaling confidence in demand while acknowledging accelerating capital commitments.
Recent developments
On January 20, 2026, Oracle was named a founding partner in the Stargate joint venture — alongside SoftBank and OpenAI — announced by President Trump to deploy $500 billion in U.S. AI infrastructure. Oracle's flagship 1.2 GW Abilene, Texas campus serves as the initial anchor site, with expansion to 2 GW under evaluation.
OpenAI was confirmed in early 2026 as the anchor customer behind a ~$30 billion per-year Oracle Cloud Infrastructure contract, with 4.5 GW of capacity earmarked for OpenAI's workloads across multiple sites. This single relationship represents a multi-year revenue commitment of extraordinary scale.
In February 2026, Oracle announced plans to raise $45–$50 billion in equity and debt financing during the calendar year to fund OCI capacity expansion. The company's client roster for this buildout includes Meta, NVIDIA, xAI, TikTok, and AMD, in addition to OpenAI.
Oracle set its Q4 FY2026 earnings release date for June 10, 2026, after market close — results will be the next major catalyst.
Debate & sentiment
Bulls anchor their thesis on the $553 billion remaining performance obligation (RPO), which grew over 400% year-over-year as of Q3 FY2026. This figure represents contracted future revenue — the highest visibility backlog in Oracle's history — and analysts at Deutsche Bank, UBS, Wedbush, and Piper Sandler have all raised price targets materially in response.
The bear case centers on capital intensity and debt load. Oracle's free cash flow turned sharply negative as capex ran at a $50 billion annual pace; non-current debt has climbed above $120 billion, and interest expense grew 32% year-over-year. Skeptics question whether the balance sheet can sustain this investment cycle without dilution or covenant strain.
Customer concentration is a secondary risk: a meaningful share of the massive RPO is tied to a handful of hyperscaler and AI-lab relationships. A renegotiation or slowdown from OpenAI alone could materially alter the revenue trajectory.
The June 10 earnings print will test whether cloud infrastructure growth can sustain 40%+ rates, and whether management sharpens or softens its long-term free cash flow conversion timeline — the single data point most likely to shift near-term sentiment.
Consensusi
Buy
Average targeti
$251.85+80%
Highest targeti
$400.00+185%
Lowest targeti
$155.00+11%
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