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On February 1, 2026 Oracle announced a $45–$50 billion 2026 equity and debt financing plan to fund Oracle Cloud Infrastructure expansion. In mid‑February the company confirmed a major CMS modernization win that positions OCI for large public‑sector workloads, and several sell‑side firms upgraded coverage following the combination of that contract and the financing plan. Reporting since late 2025 highlighted sharply higher AI capex, rapid cloud revenue growth, and a large backlog of contracted cloud commitments.
Technical Analysis
ADX at 27.85 signals a strong directional regime; directional indicators recently shifted with DI+ showing a dip & reversal and DI‑ showing a peak & reversal, which together indicate a recent bullish reassertion in trend momentum despite DI‑ currently exceeding DI+. This dynamic implies near‑term directional conflict: trend strength increased while buyers start to reassert control.
MACD registered a dip & reversal and now sits at -8.46 above its signal line (-9.19); that crossover confirms a return of bullish momentum after recent weakness and supports the view that downward pressure may be moderating.
MRO sits at 4.04 with a peak & reversal; MRO positive indicates price currently sits above the model target and therefore carries short‑term downward potential until momentum normalizes.
RSI at 38.8 with a peak & reversal shows recent selling pressure has decelerated but has not reached bullish territory; read together with the MACD crossover, this suggests improved internals but continued caution for sustained rallies.
Price sits below the 20‑day average ($152.39) and well below the 200‑day average ($220.40); the 12‑day EMA is decreasing and the 26‑day EMA remains above price, signaling that short‑term averages still lag the longer‑term trend. Bollinger band placement shows the close ($150.31) near the lower 1x band ($145.42) but not at the extreme lower bound, indicating limited immediate downside cushion but room for mean reversion toward the 20‑day average.
Fundamental Analysis
Revenue growth shows a 7.58% period change and a 34.21% year‑over‑year increase, reflecting robust cloud momentum. Gross margin registers at 66.53% while operating margin equals 32.12%; EBIT margin at 46.08% sits slightly below the industry peer mean of 48.52% and below the industry peer median of 60.27%, indicating high profitability that nevertheless trails the peer central tendency.
Net income totaled $6.135B with EBIT of $7.399B and EBITDA of $9.509B; cash and short‑term investments total $19.766B while net debt stands at $88.834B and total debt at $124.386B. Debt metrics show leverage materially above peer norms: debt‑to‑equity equals 4.15 versus an industry peer mean of 0.215, and debt‑to‑assets equals 60.68%. Interest coverage at 7.0 provides operating cushion but remains below the industry peer mean of 55.37, underlining elevated financing load relative to peers.
Free cash flow sits at -$9.967B with a free cash flow yield of -1.44% and year‑over‑year free cash growth down 18.45%; operating cash flow is $2.066B while cash flow margin measures 59.69%, which contrasts sharply with negative free cash flow driven by heavy capital spending. CapEx totaled -$12.033B and capex‑to‑revenue reads -74.94%, consistent with an aggressive infrastructure investment phase.
Valuation multiples appear elevated: trailing P/E equals 106.49 and forward P/E equals 124.04, while price‑to‑book sits at 23.09 compared with an industry peer mean price‑to‑book of 10.58. Price‑to‑sales stands at 43.06 in the context of an industry peer mean PS near 43.93, so the company trades at premium multiples on earnings and book basis while matching peers on revenue multiple. WMDST values the stock as over‑valued given the combination of stretched leverage, negative free cash flow, and elevated earnings multiples alongside heavy near‑term capex commitments.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-11-30 |
| REPORT DATE: | 2025-12-10 |
| NEXT REPORT DATE: | 2026-03-11 |
| CASH FLOW | Begin Period Cash Flow | $ 10.4 B |
| Operating Cash Flow | $ 2.1 B | |
| Capital Expenditures | $ -12.03 B | |
| Change In Working Capital | $ -4.76 B | |
| Dividends Paid | $ -1.44 B | |
| Cash Flow Delta | $ 8.8 B | |
| End Period Cash Flow | $ 19.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 16.1 B | |
| Forward Revenue | $ 3.7 B | |
| COSTS | ||
| Cost Of Revenue | $ 5.4 B | |
| Depreciation | $ 1.7 B | |
| Depreciation and Amortization | $ 2.1 B | |
| Research and Development | $ 2.6 B | |
| Total Operating Expenses | $ 10.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 10.7 B | |
| EBITDA | $ 9.5 B | |
| EBIT | $ 7.4 B | |
| Operating Income | $ 5.2 B | |
| Interest Income | $ 192.0 M | |
| Interest Expense | $ 1.1 B | |
| Net Interest Income | $ -865.00 M | |
| Income Before Tax | $ 6.3 B | |
| Tax Provision | $ 207.0 M | |
| Tax Rate | 3.264 % | |
| Net Income | $ 6.1 B | |
| Net Income From Continuing Operations | $ 6.1 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.64 | |
| EPS Actual | $ 2.26 | |
| EPS Difference | $ 0.62 | |
| EPS Surprise | 37.805 % | |
| Forward EPS | $ 1.98 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 205.0 B | |
| Intangible Assets | $ 66.0 B | |
| Net Tangible Assets | $ -36.02 B | |
| Total Current Assets | $ 34.4 B | |
| Cash and Short-Term Investments | $ 19.8 B | |
| Cash | $ 19.2 B | |
| Net Receivables | $ 9.4 B | |
| Inventory | — | |
| Long-Term Investments | $ 25.2 B | |
| LIABILITIES | ||
| Accounts Payable | $ 10.1 B | |
| Short-Term Debt | $ 8.1 B | |
| Total Current Liabilities | $ 37.8 B | |
| Net Debt | $ 88.8 B | |
| Total Debt | $ 124.4 B | |
| Total Liabilities | $ 174.5 B | |
| EQUITY | ||
| Total Equity | $ 30.0 B | |
| Retained Earnings | $ -9.36 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.42 | |
| Shares Outstanding | 2.873 B | |
| Revenue Per-Share | $ 5.59 | |
| VALUATION | Market Capitalization | $ 691.4 B |
| Enterprise Value | $ 796.1 B | |
| Enterprise Multiple | 83.716 | |
| Enterprise Multiple QoQ | -30.137 % | |
| Enterprise Multiple YoY | -0.311 % | |
| Enterprise Multiple IPRWA | high: 798.871 ORCL: 83.716 mean: 67.031 median: 61.115 low: -442.099 |
|
| EV/R | 49.574 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.844 | |
| Asset To Liability | 1.175 | |
| Debt To Capital | 0.806 | |
| Debt To Assets | 0.607 | |
| Debt To Assets QoQ | 3.879 % | |
| Debt To Assets YoY | 1003.893 % | |
| Debt To Assets IPRWA | high: 0.687 ORCL: 0.607 mean: 0.108 median: 0.087 low: 0.004 |
|
| Debt To Equity | 4.153 | |
| Debt To Equity QoQ | -4.836 % | |
| Debt To Equity YoY | 599.426 % | |
| Debt To Equity IPRWA | ORCL: 4.153 high: 1.865 mean: 0.215 median: 0.147 low: -1.125 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 23.086 | |
| Price To Book QoQ | -12.746 % | |
| Price To Book YoY | -34.763 % | |
| Price To Book IPRWA | high: 39.175 ORCL: 23.086 mean: 10.583 median: 9.178 low: -16.001 |
|
| Price To Earnings (P/E) | 106.49 | |
| Price To Earnings QoQ | -30.409 % | |
| Price To Earnings YoY | -10.022 % | |
| Price To Earnings IPRWA | high: 522.411 mean: 131.65 ORCL: 106.49 median: 83.642 low: -185.3 |
|
| PE/G Ratio | 1.982 | |
| Price To Sales (P/S) | 43.059 | |
| Price To Sales QoQ | 0.568 % | |
| Price To Sales YoY | 24.448 % | |
| Price To Sales IPRWA | high: 101.971 median: 44.141 mean: 43.933 ORCL: 43.059 low: 4.135 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 124.037 | |
| Forward PE/G | 2.308 | |
| Forward P/S | 184.449 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.242 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.083 | |
| Asset Turnover Ratio QoQ | -2.641 % | |
| Asset Turnover Ratio YoY | -13.272 % | |
| Asset Turnover Ratio IPRWA | high: 0.373 mean: 0.129 median: 0.125 ORCL: 0.083 low: 0.0 |
|
| Receivables Turnover | 1.757 | |
| Receivables Turnover Ratio QoQ | 2.394 % | |
| Receivables Turnover Ratio YoY | 1.193 % | |
| Receivables Turnover Ratio IPRWA | high: 4.512 ORCL: 1.757 mean: 1.56 median: 1.485 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 51.947 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 92.114 mean: 44.851 median: 33.146 low: 21.685 ORCL: 0 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -4.683 | |
| CapEx To Revenue | -0.749 | |
| CapEx To Depreciation | -7.062 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 129.9 B | |
| Net Invested Capital | $ 138.0 B | |
| Invested Capital | $ 138.0 B | |
| Net Tangible Assets | $ -36.02 B | |
| Net Working Capital | $ -3.43 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.523 | |
| Current Ratio | 0.909 | |
| Current Ratio QoQ | 47.179 % | |
| Current Ratio YoY | 12.394 % | |
| Current Ratio IPRWA | high: 5.255 mean: 1.402 median: 1.386 ORCL: 0.909 low: 0.466 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.081 | |
| Cost Of Debt | 0.753 % | |
| Interest Coverage Ratio | 7.0 | |
| Interest Coverage Ratio QoQ | 48.529 % | |
| Interest Coverage Ratio YoY | 42.434 % | |
| Interest Coverage Ratio IPRWA | high: 147.069 median: 66.552 mean: 55.372 ORCL: 7.0 low: -61.95 |
|
| Operating Cash Flow Ratio | 0.254 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 171.355 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.275 | |
| Dividend Payout Ratio | 0.234 | |
| Dividend Rate | $ 0.50 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 13.597 % | |
| Revenue Growth | 7.584 % | |
| Revenue Growth QoQ | -223.458 % | |
| Revenue Growth YoY | 34.206 % | |
| Revenue Growth IPRWA | high: 14.586 % ORCL: 7.584 % median: 4.635 % mean: 4.211 % low: -7.075 % |
|
| Earnings Growth | 53.741 % | |
| Earnings Growth QoQ | -497.228 % | |
| Earnings Growth YoY | 833.814 % | |
| Earnings Growth IPRWA | high: 100.0 % ORCL: 53.741 % mean: 8.52 % median: 3.226 % low: -128.333 % |
|
| MARGINS | ||
| Gross Margin | 66.534 % | |
| Gross Margin QoQ | -1.107 % | |
| Gross Margin YoY | -6.216 % | |
| Gross Margin IPRWA | high: 91.096 % mean: 70.634 % median: 68.036 % ORCL: 66.534 % low: 40.427 % |
|
| EBIT Margin | 46.077 % | |
| EBIT Margin QoQ | 58.101 % | |
| EBIT Margin YoY | 52.21 % | |
| EBIT Margin IPRWA | high: 60.268 % median: 60.268 % mean: 48.521 % ORCL: 46.077 % low: -44.038 % |
|
| Return On Sales (ROS) | 32.121 % | |
| Return On Sales QoQ | 2.182 % | |
| Return On Sales YoY | 6.108 % | |
| Return On Sales IPRWA | high: 47.094 % median: 47.094 % mean: 37.928 % ORCL: 32.121 % low: -31.502 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -9.97 B | |
| Free Cash Flow Yield | -1.441 % | |
| Free Cash Flow Yield QoQ | 2428.07 % | |
| Free Cash Flow Yield YoY | 162.956 % | |
| Free Cash Flow Yield IPRWA | high: 3.753 % mean: 0.369 % median: 0.164 % ORCL: -1.441 % low: -1.998 % |
|
| Free Cash Growth | 2653.315 % | |
| Free Cash Growth QoQ | -3128.38 % | |
| Free Cash Growth YoY | -1845.258 % | |
| Free Cash Growth IPRWA | ORCL: 2653.315 % high: 403.227 % mean: -34.15 % median: -77.08 % low: -132.549 % |
|
| Free Cash To Net Income | -1.625 | |
| Cash Flow Margin | 59.69 % | |
| Cash Flow To Earnings | 1.562 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.183 % | |
| Return On Assets QoQ | 89.69 % | |
| Return On Assets YoY | 47.84 % | |
| Return On Assets IPRWA | high: 8.509 % median: 5.909 % mean: 4.786 % ORCL: 3.183 % low: -10.846 % |
|
| Return On Capital Employed (ROCE) | 4.426 % | |
| Return On Equity (ROE) | 0.205 | |
| Return On Equity QoQ | 69.03 % | |
| Return On Equity YoY | -10.644 % | |
| Return On Equity IPRWA | high: 0.298 ORCL: 0.205 median: 0.098 mean: 0.079 low: -0.138 |
|
| DuPont ROE | 22.677 % | |
| Return On Invested Capital (ROIC) | 5.186 % | |
| Return On Invested Capital QoQ | 61.156 % | |
| Return On Invested Capital YoY | -104.13 % | |
| Return On Invested Capital IPRWA | high: 13.9 % median: 9.056 % mean: 7.484 % ORCL: 5.186 % low: -11.474 % |
|