ORACLE CORP (ORCL)

Price—Loading quote

AI: Fair-priced

Price checkThe valuation looks reasonable only if today’s rapid growth eventually produces substantial cash.

At $150.52, Oracle trades at about 25.8 times fiscal 2026 earnings of $5.83 a share, or roughly 13.6 times $32.0 billion of operating cash flow against a $433.6 billion market value. Yet free cash flow—cash left after running and investing in the business—was negative $23.7 billion because investment spending reached $55.7 billion. That mix supports Fair-priced, not cheap: 17% revenue growth and a vast contract book offset the requirement that future data centers produce strong cash returns.

Big pictureEstablished software cash supports rapid cloud growth, but spending now overwhelms internally generated cash.

Fiscal 2026 revenue rose 17% to $67.4 billion, operating income rose 17% to $20.6 billion, and operating cash flow jumped 54% to $32.0 billion. Software support revenue stayed durable at $19.8 billion, while cloud infrastructure revenue surged 77% to $18.1 billion and cloud applications grew 11% to $15.9 billion. However, investment spending more than doubled from $21.2 billion to $55.7 billion. The stable support base reduces ordinary economic sensitivity, but the newer artificial-intelligence buildout depends on project timing, utilization and customers honoring very large commitments.

Business strengthStrong liquidity cannot erase heavy borrowing, weak buybacks, and rising shareholder dilution.

The full annual filing shows $31.3 billion of cash against $130.1 billion of total borrowings; the supplied $7.2 billion debt figure represents only current maturities. Current assets of $46.6 billion still exceeded current liabilities of $41.8 billion, so near-term liquidity looks adequate, but net borrowings were about $98.8 billion. Oracle raised $43 billion of debt and $5 billion of equity during fiscal 2026. Shares rose 2.6% to 2.88 billion, while $4.8 billion of stock compensation and only $95 million of buybacks point to dilution; dividends consumed another $5.8 billion.

What could change the storyThe price works if cloud contracts become cash quickly without repeated financing or delays.

Contracted work not yet recorded as revenue reached $638 billion, with roughly 12%, or $76.6 billion, expected within twelve months. Oracle says $75 billion of large artificial-intelligence contracts includes customer-prepaid or customer-supplied hardware, strengthening the optimistic case. Evidence would improve if fiscal 2027 revenue approaches management’s $90 billion goal, operating cash keeps climbing, and borrowing and share count stabilize. The negative case strengthens if construction slips, spending near the reported $95 billion ceiling outruns cash again, or roughly $40 billion of planned financing brings costly debt or meaningful new shares.

$150.52 price considered

AI: News

Growth meets funding fearsOracle beat quarterly expectations, but huge data-center spending and fresh financing plans alarmed investors.

On June 10, Oracle reported quarterly revenue of $19.2 billion, up 21%, with cloud infrastructure revenue up 93%. Contracted work not yet recorded as revenue reached $638 billion. However, fiscal 2026 investment spending hit $55.7 billion, management indicated fiscal 2027 spending could reach $95 billion, and Oracle planned roughly $40 billion of additional financing. Shares fell 8.9% in extended trading; Reuters attributed the reaction to concern that borrowing, new shares and lower near-term cash generation could outweigh the growth.

Key pipeline delayedA key fuel pipeline slipped nearly six months, threatening timely delivery at Oracle’s largest planned data center.

On August 14, a regulatory filing moved the Green Chile pipeline’s expected start from August 15, 2026, to February 1, 2027. The pipeline is intended to supply Oracle’s planned 2.5-gigawatt Project Jupiter campus, where Oracle would host artificial-intelligence computing for OpenAI. Oracle shares fell about 4% that Friday. Reporting connected investor concern to the delay, although timing alone cannot prove full causation. A late power connection could postpone usable capacity, customer revenue and returns on construction spending.

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Total cash / debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$67.36B	$57.40B	$52.96B	$49.95B	$42.44B	$40.48B	$39.07B	$39.51B	$39.38B	$37.79B	$37.05B	$38.23B	$38.27B	$37.18B	$37.12B	$35.62B	$26.82B	$23.25B	$22.43B
Gross profit	—	—	—	—	—	—	—	—	$24.29B	$23.02B	$22.41B	$23.71B	—	—	—	—	—	—	—
Research & development	$10.27B	$9.86B	$8.91B	$8.62B	$7.22B	$6.53B	$6.07B	$6.03B	$6.08B	$6.15B	$5.79B	$5.52B	$5.15B	$4.85B	$4.52B	$4.52B	$3.25B	$2.77B	—
Operating income	$20.61B	$17.68B	$15.35B	$13.09B	$10.93B	$15.21B	$13.90B	$13.54B	$13.26B	$12.91B	$12.60B	$13.87B	$14.76B	$14.68B	$13.71B	$12.03B	$9.06B	$8.32B	$7.84B
EBITDAderived	$29.90B	$23.85B	$21.49B	$19.20B	$14.05B	$18.13B	$16.86B	$16.45B	$16.05B	$15.36B	$15.11B	$16.73B	$17.67B	$17.61B	$16.62B	$14.83B	$11.33B	$10.30B	$9.32B
Net income	$17.09B	$12.44B	$10.47B	$8.50B	$6.72B	$13.75B	$10.13B	$11.08B	$3.59B	$9.45B	$8.90B	$9.94B	$10.96B	$10.93B	$9.98B	$8.55B	$6.13B	$5.68B	$5.58B
Basic EPSper diluted share	$5.94	$4.46	$3.82	$3.15	$2.49	$4.67	$3.16	$3.05	$0.87	$2.30	$2.11	$2.26	$2.42	$2.29	$1.99	$1.69	$1.22	$1.10	$1.08
Diluted EPSper diluted share	$5.83	$4.34	$3.71	$3.07	$2.41	$4.55	$3.08	$2.97	$0.85	$2.24	$2.07	$2.21	$2.38	$2.26	$1.96	$1.67	$1.21	$1.09	$1.06

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$1.17M disclosed value

Sells (SEC code S)93$3.15B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4 · 10b5-1	HENLEY JEFFREYVice Chairman	SellCommon Stock	800	$165.57	$132.5K	0
Jun 24, 2026Form 4 · 10b5-1	HENLEY JEFFREYVice Chairman	SellCommon Stock	13.5K	$164.91	$2.23M	800
Jun 24, 2026Form 4 · 10b5-1	HENLEY JEFFREYVice Chairman	SellCommon Stock	26.6K	$164.00	$4.36M	14.3K
Jun 24, 2026Form 4 · 10b5-1	HENLEY JEFFREYVice Chairman	SellCommon Stock	15.1K	$163.00	$2.46M	40.9K
Jun 24, 2026Form 4 · 10b5-1	HENLEY JEFFREYVice Chairman	SellCommon Stock	16.8K	$162.18	$2.73M	56.1K

Review ownership filings at SEC.gov ↗

ORACLE CORP (ORCL)

Financial charts

Financial statements

Insider buys & sells