Oracle Corporation provides enterprise information technology products and services, including cloud-based, on-premise, and hybrid applications and infrastructure offerings. The company's main businesses are cloud and license, hardware, and services, catering to a global customer base across various industries.
Business segments
10-K
cloud and licensehardwareservices
Recent News
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Earnings call: Q2 2026 2026
Intel
Free
Dec 08, 2026Optimistic
● Full transcript on file
Clay Magouyrk (Co-CEO)
Key metrics
RPO: approximately $524 billion (sequential increase of $68 billion); OCI revenue growth: 68% YoY.
Forward guidance
Continued acceleration in OCI revenue conversion from contracted demand; ongoing regional expansions with Microsoft, Google, and AWS partners.
Notable Q&A
N/A (limited transcript details available).
Surprise items
Sequential RPO addition of $68 billion signaling strong demand momentum.
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$57,399 million
8.4% YoY
Operating margin
30.8%
Net income
$12,443 million
Free cash flow
-$394 million
Dividend / share
$1.70
Total debt
$92,568 million
Cash: $10,786 million
Earnings quality:HIGH
Recurring revenue:77%
Cash conversion:1.7x
Non-recurring items: Acquisition related and other expenses, including personnel-related costs, business combination adjustments, asset impairment, and litigation-related charges ($75 million in FY2025)., Restructuring expenses, primarily for employee severance in connection with the Fiscal 2024 Oracle Restructuring Plan ($299 million in FY2025).
ORCL has already experienced a brutal ~59% drawdown from its 52-week high of $345.72, trading near multi-year support at $140, and is now priced at ~13x forward earnings on genuinely strong underlying cloud fundamentals (OCI +93% YoY, $638B backlog, 21% revenue growth in Q4 FY2026). However, the 5-day directional edge is unclear: the stock sold off ~10% post-record earnings in June on guidance concerns and a -$23.7B free cash flow in FY2026, and the ex-dividend date just passed (July 10), removing a near-term technical buyer. The bear case (negative FCF, $70B FY2027 capex, looming $40B debt/equity raise, ongoing securities class action lawsuits, and neutral macro) offsets the deeply discounted forward valuation for the next 5 days specifically.
Strongest bull case
Forward P/E of ~13x on a business guiding 18% EPS growth and 31% revenue CAGR through FY2030, with a $638B contracted revenue backlog providing extraordinary revenue visibility — the valuation reset appears largely complete at near 52-week lows.
Strongest bear case
Oracle generated -$23.7B in free cash flow in FY2026 against $55.7B in capex, and management guided another $70B in capex plus a $40B debt and equity raise for FY2027 — the dilution and cash burn risk is specific, large, and not fully priced in; the stock fell ~10% after a record earnings beat precisely because the market focused on this issue.
What the market may be missing
The ex-dividend date of July 10 just passed, removing a near-term technical tailwind. More critically, the consensus $252 price target may be stale and not yet fully reflect the dilutive impact of the planned $40B equity raise in FY2027 — if that raise is sized near the high end, per-share EPS accretion gets pushed further out, making the forward P/E argument less compelling than it appears at face value.
Mike Sicilia, as CEO of Oracle, is featured as a keynote speaker at this summit focused on the future of healthcare. The event brings together global executives, innovators, and policy leaders to discuss advancements in health and life sciences. Key
CEO letter to shareholders
Signal
No shareholder letter on file for ORCL
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Lawrence J. Ellison
Executive Chair and Chief Technology Officer
$5,643,948
Safra A. Catz
Executive Vice Chair and Former Chief Executive Officer
Unsecured. The agreement includes a negative pledge covenant (Section 6.02(a)) generally prohibiting the Borrower and its Material Subsidiaries from creating Liens on their properties unless the Advances are secured equally and ratably, with certain exceptions.
68401BAT468401BAU1
Revolver$6,000,000,000
U.S. $6,000,000,000 REVOLVING CREDIT AGREEMENT
Matures 2027-03-08 · Filed 2022-03-11
Floating · SOFR
unsecured
Term Loan$15,700,000,000
U.S. $15,700,000,000 DELAYED DRAW TERM LOAN CREDIT AGREEMENT
Matures 2023-03-07 · Filed 2022-03-11
Floating · SOFR
unsecured
Financial covenants
Consolidated Net Interest Coverage Ratio
≥ 3.0 to 1.0
Consolidated EBITDA / Consolidated Net Interest Expense
U.S. $10,000,000,000 REVOLVING CREDIT AGREEMENT
Minimum Consolidated Net Interest Coverage Ratio
≥ 3.0 to 1.0
Consolidated Net Interest Coverage Ratio
U.S. $6,000,000,000 REVOLVING CREDIT AGREEMENT
Cross-default risk
3 agreements contain cross-default provisions — a covenant breach on one facility may trigger default on others.
Xavier risk radar
Pro
Covenant headroom
High leverage — no covenants on file
Earnings quality
High quality (cash conversion 1.7x)
Risk trend
Risk increasing — If we do not successfully execute our Oracle Cloud strategy, including our offer
Mgmt narrative
Management tone: Cautiously optimistic
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jul 12, 2026
NEUTRAL
6.1/10
75%
ORCL has already experienced a brutal ~59% drawdown from its 52-week high of $345.72, trading near m...
$140.64
Sched.
Jul 11, 2026
NEUTRAL
6.3/10
100%
Oracle screens reasonably valued on forward earnings, but the stock is only modestly above its 52-we...
$140.64
Sched.
Jun 07, 2026
NEUTRAL
6.1/10
75%
ORCL's -9.6% single-day crash is macro-driven (hot May jobs report, Broadcom AI-growth disappointmen...
$213.68
Sched.
May 31, 2026
NEUTRAL
6.6/10
75%
ORCL surged ~11% on May 29 driven by a Snowflake-led sector re-rating and a U.S. government cloud in...
$225.78
Sched.
May 24, 2026
NEUTRAL
6.7/10
67%
Oracle screens as richly valued on trailing earnings at ~34.5x despite only modest reported revenue ...
$192.08
Sched.
May 17, 2026
NEUTRAL
6.2/10
50%
ORCL is deeply off its 52-week high (~44% below $345.72) and has recovered ~22% over the past month ...
$192.95
Sched.
May 10, 2026
NEUTRAL
6.9/10
67%
ORCL has supportive macro and AI/cloud enthusiasm behind it, but the stock still screens expensive o...
$195.95
Sched.
May 03, 2026
NEUTRAL
6.7/10
75%
ORCL surged 6.47% on a $1.65B AI supply agreement and Pentagon AI partnership, but the stock is stil...
$171.83
Sched.
Apr 12, 2026
BULLISH
6.5/10
75%
ORCL is trading at roughly 60% below its September 2025 peak with a forward P/E of ~17x and a consen...
$138.09
Sched.
Showing last 9 signals
ORCLOracle Corporation
Signal
FY2026 annual report (10-K filed 2025-06-18)
INCOME STATEMENT
?Revenue
$57,399 million8.4% YoY
Total sales from software licenses, cloud services, hardware, and subscriptions. Up 8.4% from last year.
?Operating income
$17,678 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 30.8%, meaning 31 cents of every dollar of revenue becomes operating profit.
?Net income
$12,443 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 22.4%. Note: results include non-recurring items (acquisition related and other expenses, including personnel-related costs, business combination adjustments, asset impairment, and litigation-related charges ($75 million in fy2025)., restructuring expenses, primarily for employee severance in connection with the fiscal 2024 oracle restructuring plan ($299 million in fy2025).) that may not repeat.
?Free cash flow
-$394 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?Dividend per share
$1.70
Cash paid to shareholders each year for every share they own. Tech dividends vary — mature companies like Apple and Microsoft pay growing dividends while growth companies reinvest.
BALANCE SHEET
?Cash & equivalents
$10,786 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$92,568 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $10,786 million in cash against this debt.
?Shares outstanding
2,866 million
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
CASH FLOW
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Recurring revenue
77%
77% of revenue comes from repeat sources — ongoing contracts, subscriptions, or regular customer purchasing patterns rather than one-time sales. Higher recurring revenue means more predictable future earnings.
?Cash conversion
1.7x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.7x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
2 identified
One-time items that affect the bottom line but won't repeat: acquisition related and other expenses, including personnel-related costs, business combination adjustments, asset impairment, and litigation-related charges ($75 million in fy2025)., restructuring expenses, primarily for employee severance in connection with the fiscal 2024 oracle restructuring plan ($299 million in fy2025).. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
If we do not successfully execute our Oracle Cloud strategy, including our offerings of Oracle Cloud Services, our revenues and profitability may decline. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
?WACC
11.79%
Weighted Average Cost of Capital — the minimum return Oracle Corporation must earn on its investments to satisfy both debt holders and shareholders. Computed from a 79.92% equity / 20.08% debt capital structure. If the company earns less than 11.79% on its invested capital, it is destroying shareholder value.
?Cost of equity
13.67%
The return shareholders demand for holding ORCL stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (1.71) × Equity Risk Premium (5.50%). A beta of 1.71 means ORCL is more volatile than the overall market.
?Cost of debt (after-tax)
4.35%
What Oracle Corporation effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 21.00%.
?Capital structure
E: 79.92% / D: 20.08%
How Oracle Corporation finances its operations — the split between equity (stock market value: $368.5B) and debt (total borrowings: $92.6B). More debt means more leverage — higher potential returns but higher risk.
?NOPAT
$16.3B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($20.6B) × (1 - Tax Rate 21.00%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jul 12, 2026.