Oracle Corporation (ORCL) Fundamental Analysis: Bull vs. Bear Case

ORCL

Oracle Corporation

Fundamental data last updated:August 4, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NYSE

County of HQ

US

Next Earnings Date

09/08/2026

Business Summary

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 Oracle Fusion Cloud suite covering enterprise resource planning (ERP), enterprise performance management (EPM), supply chain and manufacturing management (SCM), and human capital management (HCM). This also extends to specialized offerings like Oracle Advertising, the NetSuite application suite, and Oracle Fusion solutions for Sales, Service, and Marketing. Beyond these, Oracle develops cloud solutions tailored for various specific industries, alongside traditional application licenses and comprehensive license support services. Furthermore, the company's robust cloud and licensing business is underpinned by its infrastructure technologies. These include the flagship Oracle Database, the widely adopted Java programming language, and various middleware components such as development tools. Its advanced cloud infrastructure provides compute, storage, and networking capabilities, complemented by innovative services like the Oracle Autonomous Database, MySQL HeatWave, Internet-of-Things (IoT) platforms, digital assistants, and blockchain technology. Oracle also offers a range of hardware products and associated software. This encompasses Oracle engineered systems, enterprise servers, storage solutions, and specialized hardware for particular industries. Additionally, it provides virtualization software, operating systems, management software, and related hardware support. Complementing its product lines, Oracle delivers expert consulting and dedicated customer services. The company employs a direct sales model, reaching businesses across diverse sectors, government bodies, and educational institutions globally, while also leveraging an extensive network of indirect channels. Established in 1977, Oracle Corporation maintains its corporate headquarters in Austin, Texas.

VALUATION

P/E

24.21 Market Cap ($M USD)

$414.10B

Forward P/E

6.00 PEG

0.02 PRICE TO SALES

6.15 PRICE TO BOOK

9.73 EV / EBITDA

16.79 5-Year Average P/E

Free Cash Flow Yield

-5.72%

DCF Value

$-23.78

Graham Number

$44.42

Price to FCF

-17.48

EV to FCF

-22.76

Earnings Yield

4.13%

FCF Yield

-5.72%

DIVIDEND

Yield

1.39%

Annual Payout

$2.00

Payout Ratio

33.87%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.94

Next Year EPS Growth Estimate

$23.95

Next Year Revenue Growth Estimate

$257.13B

Return on Equity (ROE)

50.59%

FREE CASH FLOW

Operating Margin

30.85%

Debt-to-Equity

3.67 Piotroski F-Score

5 Altman Z-Score

1.67 Return on Invested Capital (ROIC)

9.44%

Current Ratio

1.12 Quick Ratio

1.12 Net Debt to EBITDA

3.89 Interest Coverage

4.52 Gross Profit margin

65.81%

FCF PER SHARE

$-8.23

REVENUE PER SHARE

$23.40

Gainseekers Quantitative Analysis

Summary

Oracle Corporation’s valuation presents a perplexing narrative. Despite a Forward P/E of 6.12, suggesting potential undervaluation, the stock’s price is dramatically misaligned with its negative DCF Value. The Altman Z-score of 1.73 raises red flags about financial distress, while the Earnings Yield of 4.05% hints at modest returns. The market seems to be pricing in a rosy future, yet the Graham Number suggests a stark overvaluation. This juxtaposition of metrics paints a picture of a company with significant growth expectations but underlying financial vulnerabilities.

AI Exposure / Tech Reliance

Positioned within the Software - Infrastructure industry, Oracle is strategically poised to leverage AI advancements. Its robust software solutions can integrate AI to enhance data management and analytics, crucial for modern enterprises. This adaptability ensures Oracle remains relevant amidst rapid technological shifts.

The Bull Case

For the discerning GARP investor, Oracle's appeal lies in its impressive ROIC of 9.44% and a strong Operating Margin of 30.85%, indicating efficient capital use and pricing power. The Piotroski F-Score of 5 suggests moderate financial health, while the negative FCF Yield raises concerns but also highlights potential for turnaround. These metrics collectively suggest a company with the capability to generate substantial returns on investment, making it an attractive buy for those betting on operational excellence.

The Bear Case

Oracle's structural risks are glaring, particularly its negative Free Cash Flow and a Price to FCF ratio of -17.84, signaling cash flow struggles. The Price/Book ratio of 9.93 and Price/Sales of 6.27 indicate a potentially overvalued stock, especially when juxtaposed with its proximity to the 52-week high. The market's optimism may be overextended, and the high Debt/Equity ratio of 3.67 compounds the risk, suggesting caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$253.50

Institutional Ownership %

1-Year Beta

1.71 Insider Buying % (6 Mo)

Distance to 52-Week High

140.48%

Distance to 52-Week Low

6.39%

EARNINGS SURPRISE %

7.65%

50-DAY SMA

$185.50

200-DAY SMA

$199.06

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.