Recent News
On December 2025 and into January 2026 media outlets reported a leadership transition at Oracle that elevated Clay Magouyrk and Mike Sicilia to co-CEO roles while Safra Catz moved to executive vice chair. In recent weeks the Financial Times highlighted investor concern after Oracle disclosed a large increase in data-center spending tied to AI infrastructure, noting meaningful debt growth and market volatility. On January 21, 2026 a major financial outlet published a bullish analyst case projecting substantial long-term revenue upside from Oracle’s AI partnerships and BYOC strategy.
Technical Analysis
ADX at 18.13 indicates no clear market trend; directional indicators show DI+ peak-and-reversal and DI- dip-and-reversal, a configuration that produces bearish directional pressure despite the lack of a strong trend.
MACD sits negative at -4.99 with a peak-and-reversal profile, signaling bearish momentum even as the MACD value currently trades slightly above its signal line (-5.47); momentum reads favor further downside pressure over the near term.
MRO at 20.94 (peak-and-reversal) places price above the WMDST target and signals a higher probability of a price contraction toward fundamental value levels in the coming weeks.
RSI at 40.64 with a peak-and-reversal pattern reflects recent weakening from higher levels and sits below neutral, reinforcing a bias toward further short-term weakness rather than strength.
Price closed at $179.92 well below the 20-day average ($194.04), 50-day average ($204.56) and 200-day average ($217.55); the 12-day EMA peaked and reversed at $192.62, and the close sits below the lower 1x Bollinger band ($187.36) and slightly below the lower 2x band ($180.67). Elevated 42-day beta (2.19) and intraday volume above the 10- and 200-day averages indicate amplified short-term volatility and active distribution relative to recent norms.
Fundamental Analysis
Margins and profitability: EBIT of $7.399B produces an EBIT margin of 46.08%, well above the industry peer high of 37.62% and supporting the company’s ability to monetize cloud contracts at high incremental margins. Operating margin stands at 32.12%, and return on equity registers at 20.48%.
Earnings and cash flow: Reported EPS actual of $2.26 exceeded the estimate of $1.64 by $0.62, a surprise of 37.81%. Net income reached $6.135B, while operating cash flow measured $2.066B. Free cash flow registered negative $9.967B, producing a free-cash-flow yield of -1.44% and a free-cash-flow growth rate that shows recent quarter weakness; WMDST treats the negative free cash flow as a material near-term liquidity consideration given the capex program.
Revenue and growth: Total revenue reached $16.058B with YoY revenue growth of 34.21% and QoQ revenue change showing a -223.46% figure as reported; WMDST notes strong annual growth driven by cloud infrastructure and SaaS expansion, while sequential dynamics reflect timing and recognition effects tied to large contracts.
Capital allocation and leverage: Capital expenditures totaled -$12.033B over the period, and the company carries total debt of $124.386B with net debt of $88.834B. Debt-to-equity stands near 4.15x and debt-to-EBITDA at 13.08x; interest coverage remains positive at 7.0x but rising leverage and increased capex present elevated balance-sheet risk relative to historical levels.
Valuation metrics: Trailing P/E registers at 106.49 and forward P/E at 124.04, while price-to-book measures 23.09 and price-to-sales sits at 43.06. WMDST values the stock as over-valued given those stretched multiples relative to cash-flow generation and the current negative free cash flow.
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 | $ 1.99 | |
| 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: 2195.465 mean: 443.375 ORCL: 83.716 median: 82.45 low: -363.609 |
|
| 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: 0.162 median: 0.117 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: 1.275 mean: 0.406 median: 0.204 low: -0.721 |
|
| 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: 15.151 median: 12.057 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: 697.934 mean: 226.542 median: 156.368 ORCL: 106.49 low: -66.95 |
|
| 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 mean: 45.167 ORCL: 43.059 median: 37.405 low: 6.148 |
|
| 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: 0.213 mean: 0.134 median: 0.124 ORCL: 0.083 low: 0.047 |
|
| Receivables Turnover | 1.757 | |
| Receivables Turnover Ratio QoQ | 2.394 % | |
| Receivables Turnover Ratio YoY | 1.193 % | |
| Receivables Turnover Ratio IPRWA | high: 2.828 mean: 1.81 ORCL: 1.757 median: 1.655 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: 1.465 median: 0.996 ORCL: 0.909 low: 0.491 |
|
| 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: 58.966 median: 17.486 mean: 12.772 ORCL: 7.0 low: -9.8 |
|
| 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: 13.653 % ORCL: 7.584 % median: 3.44 % mean: 2.657 % low: -6.711 % |
|
| Earnings Growth | 53.741 % | |
| Earnings Growth QoQ | -497.228 % | |
| Earnings Growth YoY | 833.814 % | |
| Earnings Growth IPRWA | ORCL: 53.741 % high: 40.909 % median: 3.578 % mean: 2.079 % low: -91.667 % |
|
| MARGINS | ||
| Gross Margin | 66.534 % | |
| Gross Margin QoQ | -1.107 % | |
| Gross Margin YoY | -6.216 % | |
| Gross Margin IPRWA | high: 91.096 % mean: 77.699 % median: 76.558 % ORCL: 66.534 % low: 61.57 % |
|
| EBIT Margin | 46.077 % | |
| EBIT Margin QoQ | 58.101 % | |
| EBIT Margin YoY | 52.21 % | |
| EBIT Margin IPRWA | ORCL: 46.077 % high: 37.617 % median: 23.862 % mean: 15.342 % low: -23.567 % |
|
| Return On Sales (ROS) | 32.121 % | |
| Return On Sales QoQ | 2.182 % | |
| Return On Sales YoY | 6.108 % | |
| Return On Sales IPRWA | high: 36.503 % ORCL: 32.121 % median: 12.49 % mean: 11.409 % low: -27.164 % |
|
| 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: 0.94 % median: 0.935 % 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: 259.835 % mean: 87.196 % median: 71.291 % 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: 7.246 % ORCL: 3.183 % mean: 1.625 % median: 1.418 % 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 | ORCL: 0.205 high: 0.16 median: 0.035 mean: 0.03 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: 10.711 % ORCL: 5.186 % median: 2.968 % mean: 2.938 % low: -5.12 % |
|