Oracle Corporation (ORCL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Oracle Corporation

Updated on October 31, 2026 · accounts published on September 10, 2026

A fast-growing, highly profitable business stretched by heavy debt and negative free cash flow

Oracle trades at a P/E of 20.5 over the last 12 months, 36 % below its sector median of 32.0 and 14 % below its own ten-year median.

• Is Oracle expensive or cheap? At a P/E of 20.5, Oracle trades 36 % below its sector median and has traded lower only 34 % of the past decade.
• How is the business doing? Revenue grew 17 % and EPS 34 % over the last 12 months, with a 32 % operating margin in line with its 2015-2026 average.
• Is Oracle growing with real cash or by diluting shareholders? Dilution is contained at 7 % of revenue, but free cash flow was −35 % of revenue in fiscal 2026, far from the 20 % healthy mark.
• How strong is the balance sheet? Net debt is $44.79 per share in fiscal 2026, 34 % of the share price and 3.9× EBITDA, against 1.5× tolerable for software.
• What to expect from the next earnings? Analysts expect EPS of $1.88 when Oracle reports on December 14, 2026; it beat estimates in 5 of the last 8 quarters.

Is Oracle expensive or cheap?

Over the last 12 months Oracle has a P/E of 20.5, 14 % below its ten-year median of 23.7. Over the last decade it has traded lower only 34 % of the time, in a range from 14.4 to 69.2. Against the technology sector median of 32.0 (314 companies) the discount is 36 %. EV/EBITDA of 13.7× sits well below its five-year average of 21.2×. The market has marked the stock down hard: it is 49 % lower than a year ago and 50 % below its 52-week high of $262.61. The multiple looks modest, and the balance sheet explains part of why.

How is the business doing?

Growth is solid: revenue rose 17 % and EPS 34 % over the last 12 months. Profitability is holding steady rather than rising. The operating margin is 32.4 %, against a 32.3 % average for fiscal 2015-2026, and it was 30.8 % in fiscal 2026 alone. The 43 % ROE flatters the picture because it rests on heavy borrowing. ROIC, which counts debt as capital, is 7.7 % over the last 12 months, 0.5 points below the sector median of 8.2 %. That is low for a company that kept ROIC above 10 % in 7 of the last 10 fiscal years.

Is Oracle growing with real cash or by diluting shareholders?

In technology, generic ratios miss what matters: growth, pricing power and dilution from stock-based pay. Oracle passes the dilution test, with stock-based pay at 7.1 % of revenue in fiscal 2026, under the 10 % healthy line. The rest falls short. Free cash flow was −35.2 % of revenue in fiscal 2026, against a healthy 20 %. Revenue per share grew 8.1 % a year over fiscal 2023-2026, versus a 15 % bar. The Rule of 40 score is −27, against a healthy 35. Gross margin of 65.2 % sits just under the 70 % software mark. For now, growth is consuming cash rather than producing it.

How strong is the balance sheet?

Debt is the weak spot. Debt to equity stands at 2.3 over the last 12 months, and net debt equals 3.9× EBITDA in fiscal 2026, well above the 1.5× that software companies can tolerate. The Altman Z-score of 2.5 sits in the grey zone, and a current ratio of 1.2 leaves little slack. The Piotroski score of 6 out of 9 is acceptable. Shareholders are still being paid: Oracle has raised its dividend per share for 11 consecutive fiscal years through 2026. The payout is 34 % of earnings and the yield is 1.5 %, a dividend that is modest next to the debt load.

What to expect from the next earnings?

On September 10, 2026 Oracle reported EPS of $1.92, 10 % above the $1.74 expected, and it has beaten EPS estimates in 5 of the last 8 quarters. For the quarter due December 14, 2026, the consensus is $1.88, below that last result. Expectations are stable: over the past 30 days the 2027 EPS consensus held at $8.14 across 23 analysts, and revenue forecasts barely moved. Of 87 analysts, 57 rate the stock a buy, 26 a hold and 4 a sell. With the stock down 49 % in a year, the free cash flow trend may weigh as much as the EPS figure.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.