NYSE · Technology

Oracle Corporation

ORCL · Software - Infrastructure

$141.85

▲ 11.98 (9.22%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 65.2%

Operating Margin 36.3%

Net Income Margin 22.4%

Fin. Health

D⤢

Years to Pay Off Debt 36.3 yrs

Working Capital vs Long-Term Debt -$117.5B

Working Capital $4.8B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 10.88x

Cash Flow

F⤢

Free Cash Flow -$1.9B

CapEx % of Net Income 383.2%

Owner Earnings $23.6B

Profitability

Gross Profit Margin 65.2%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 36.3%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 22.4%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 36.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$117.5B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $4.8B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$1.9B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 383.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $23.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Oracle Corporation

Oracle Corporation offers products and services that build, run and support enterprise information technology frameworks worldwide. Its Oracle cloud software as a service offering includes various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas.

Market Data

Market Cap $408.6B

Enterprise Value $515.1B

P/E (TTM) 24.33

Dividend Yield 1.54%

Exchange NYSE

Key Margins

Gross Profit 65.2%

Operating Margin 36.3%

Net Margin 22.4%

Company Info

Sector Technology

Industry Software - Infrastructure

Employees 141000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Oracle Corporation at $141.85.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $141.85, the stock trades at a 588% premium to its Graham Number of $20.62. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	65.2%▼	66.5%
Operating Margin %	36.3%▲	32.1%
Net Income %	22.4%▼	38.2%
Diluted EPS	1.45▼	2.10

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Total Assets	$261.8B	$205.0B	N/A
Total Debt	$156.2B▲	$124.4B•	N/A
Working Capital	$4.8B▲	-$3.4B•	N/A
Years to Pay Debt	36.29	20.27	N/A

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	-$1.9B▲	-$10.0B•	N/A
Owner Earnings	$23.6B	$20.3B	N/A
CapEx % of Net Income	383.2%	196.1%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	-92,436	66,519
Tax Rate For Calcs	0	0
Normalized EBITDA	10,121,000	7,471,000
Total Unusual Items	-466,000	2,038,000
Total Unusual Items Excluding Goodwill	-466,000	2,038,000
Net Income From Continuing Operation Net Minority Interest	4,304,000	6,135,000
Reconciled Depreciation	2,847,000	2,110,000
Reconciled Cost Of Revenue	4,256,000	3,671,000
EBITDA	9,655,000	9,509,000
EBIT	6,808,000	7,399,000
Net Interest Income	-1,150,000	-865,000
Interest Expense	1,439,000	1,057,000
Interest Income	289,000	192,000
Normalized Income	4,677,564	4,163,519
Net Income From Continuing And Discontinued Operation	4,304,000	6,135,000
Total Expenses	12,229,000	10,900,000
Total Operating Income As Reported	6,133,000	4,731,000
Diluted Average Shares	2,915,000	2,922,000
Basic Average Shares	2,878,000	2,864,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	4,223,000	6,135,000
Net Income Common Stockholders	4,223,000	6,135,000
Preferred Stock Dividends	81,000
Net Income	4,304,000	6,135,000
Net Income Including Noncontrolling Interests	4,304,000	6,135,000
Net Income Continuous Operations	4,304,000	6,135,000
Tax Provision	1,065,000	207,000
Pretax Income	5,369,000	6,342,000
Other Income Expense	-436,000	2,049,000
Other Non Operating Income Expenses	106,000	57,000
Special Income Charges	-822,000	-427,000
Restructuring And Mergern Acquisition	822,000	427,000
Earnings From Equity Interest	-76,000	-46,000
Gain On Sale Of Security	356,000	2,465,000
Net Non Operating Interest Income Expense	-1,150,000	-865,000
Interest Expense Non Operating	1,439,000	1,057,000
Interest Income Non Operating	289,000	192,000
Operating Income	6,955,000	5,158,000
Operating Expense	5,558,000	5,526,000
Depreciation Amortization Depletion Income Statement	432,000	407,000
Depreciation And Amortization In Income Statement	432,000	407,000
Amortization	432,000	407,000
Amortization Of Intangibles Income Statement	432,000	407,000
Research And Development	2,614,000	2,561,000
Selling General And Administration	2,512,000	2,558,000
Selling And Marketing Expense	2,068,000	2,149,000
General And Administrative Expense	444,000	409,000
Other Gand A	333,000	315,000
Salaries And Wages	111,000	94,000
Gross Profit	12,513,000	10,684,000
Cost Of Revenue	6,671,000	5,374,000
Total Revenue	19,184,000	16,058,000
Operating Revenue	19,184,000	16,058,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	5,543,794	5,543,794
Ordinary Shares Number	2,880,000	2,872,573
Share Issued	8,423,794	8,416,367
Net Debt	98,252,000	88,834,000
Total Debt	156,189,000	124,386,000
Tangible Book Value	-24,707,000	-36,016,000
Invested Capital	167,095,000	138,026,000
Working Capital	4,803,000	-3,429,000
Net Tangible Assets	-19,753,000	-36,016,000
Capital Lease Obligations	26,648,000	16,311,000
Common Stock Equity	37,554,000	29,951,000
Preferred Stock Equity	4,954,000
Total Capitalization	164,850,000	129,935,000
Total Equity Gross Minority Interest	43,056,000	30,457,000
Minority Interest	548,000	506,000
Stockholders Equity	42,508,000	29,951,000
Gains Losses Not Affecting Retained Earnings	-1,380,000	-1,271,000
Other Equity Adjustments	-1,380,000	-1,271,000
Retained Earnings	-4,309,000	-9,355,000
Capital Stock	48,197,000	40,577,000
Common Stock	43,243,000	40,577,000
Preferred Stock	4,954,000	0
Total Liabilities Net Minority Interest	218,703,000	174,527,000
Total Non Current Liabilities Net Minority Interest	176,939,000	136,732,000
Other Non Current Liabilities	16,178,000	9,552,000
Tradeand Other Payables Non Current	11,771,000	10,885,000
Non Current Deferred Liabilities			2,864,000
Non Current Deferred Taxes Liabilities			2,864,000
Long Term Debt And Capital Lease Obligation	148,990,000	116,295,000
Long Term Capital Lease Obligation	26,648,000	16,311,000
Long Term Debt	122,342,000	99,984,000
Current Liabilities	41,764,000	37,795,000
Other Current Liabilities	11,447,000	7,677,000
Current Deferred Liabilities	9,916,000	9,940,000
Current Deferred Revenue	9,916,000	9,940,000
Current Debt And Capital Lease Obligation	7,199,000	8,091,000
Current Debt	7,199,000	8,091,000
Pensionand Other Post Retirement Benefit Plans Current	2,225,000	1,947,000
Payables And Accrued Expenses	10,977,000	10,140,000
Payables	10,977,000	10,140,000
Accounts Payable	10,977,000	10,140,000
Total Assets	261,759,000	204,984,000
Total Non Current Assets	215,192,000	170,618,000
Other Non Current Assets	11,743,000	25,245,000
Non Current Deferred Assets	11,541,000	11,531,000
Non Current Deferred Taxes Assets	11,541,000	11,531,000
Goodwill And Other Intangible Assets	62,261,000	65,967,000
Other Intangible Assets		3,760,000
Goodwill	62,261,000	62,207,000
Net PPE	129,647,000	67,875,000
Accumulated Depreciation	-22,694,000
Gross PPE	152,341,000
Construction In Progress	39,973,000
Other Properties	29,690,000
Machinery Furniture Equipment	60,086,000
Buildings And Improvements	21,263,000
Land And Improvements	1,329,000
Current Assets	46,567,000	34,366,000
Other Current Assets	4,288,000	5,160,000
Receivables	10,385,000	9,440,000
Accounts Receivable	10,385,000	9,440,000
Allowance For Doubtful Accounts Receivable	-542,000	-539,000
Gross Accounts Receivable	10,927,000	9,979,000
Cash Cash Equivalents And Short Term Investments	31,894,000	19,766,000
Other Short Term Investments	605,000	525,000
Cash And Cash Equivalents	31,289,000	19,241,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-1,873,000	-9,967,000
Repurchase Of Capital Stock	0	-92,000
Repayment Of Debt	-7,034,000	-832,000
Issuance Of Debt	4,894,000	17,880,000
Issuance Of Capital Stock	132,000	138,000
Capital Expenditure	-16,493,000	-12,033,000
End Cash Position	31,289,000	19,241,000
Beginning Cash Position	38,455,000	10,445,000
Effect Of Exchange Rate Changes	3,000	-43,000
Changes In Cash	-7,169,000	8,839,000
Financing Cash Flow	-5,911,000	14,487,000
Cash Flow From Continuing Financing Activities	-5,911,000	14,487,000
Net Other Financing Charges	-122,000	-2,058,000
Cash Dividends Paid	-1,502,000	-1,435,000
Common Stock Dividend Paid	-1,502,000	-1,435,000
Net Common Stock Issuance	132,000	46,000
Common Stock Payments	0	-92,000
Common Stock Issuance	132,000	138,000
Net Issuance Payments Of Debt	-4,419,000	17,934,000
Net Short Term Debt Issuance	-1,219,000	1,124,000
Short Term Debt Payments
Net Long Term Debt Issuance	-3,200,000	16,810,000
Long Term Debt Payments	-4,749,000	-1,070,000
Long Term Debt Issuance	1,549,000	17,880,000
Investing Cash Flow	-15,878,000	-7,714,000
Cash Flow From Continuing Investing Activities	-15,878,000	-7,714,000
Net Investment Purchase And Sale	615,000	4,319,000
Sale Of Investment	991,000	4,482,000
Purchase Of Investment	-376,000	-163,000
Capital Expenditure Reported	-16,493,000	-12,033,000
Operating Cash Flow	14,620,000	2,066,000
Cash Flow From Continuing Operating Activities	14,620,000	2,066,000
Change In Working Capital	7,172,000	-4,761,000
Change In Other Working Capital	4,392,000	-2,083,000
Change In Payables And Accrued Expense	1,976,000	-3,249,000
Change In Payable	1,976,000	-3,249,000
Change In Account Payable	581,000	-1,032,000
Change In Tax Payable	1,395,000	-2,217,000
Change In Income Tax Payable	1,395,000	-2,217,000
Change In Prepaid Assets	793,000	1,226,000
Change In Receivables	11,000	-655,000
Changes In Account Receivables	11,000	-655,000
Other Non Cash Items			168,000
Stock Based Compensation	1,203,000	1,156,000
Deferred Tax	-622,000	-183,000
Deferred Income Tax	-622,000	-183,000
Depreciation Amortization Depletion	2,847,000	2,110,000
Depreciation And Amortization	2,847,000	2,110,000
Amortization Cash Flow	432,000	406,000
Amortization Of Intangibles	432,000	406,000
Depreciation	2,415,000	1,704,000
Operating Gains Losses
Gain Loss On Investment Securities
Net Income From Continuing Operations	4,304,000	6,135,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $15.9B ▲ $19.2B +20.6%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 70.2% ▲ 65.2% -5.0pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 43.7% ▲ 36.3% -7.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 21.5% ▲ 22.4% +0.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$19.2B/qtr (≈$76.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.12x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$1.9B

vs Positive

Operating Cash Flow

$14.6B

Latest quarter · Buffett's cash reality check

ROIC

2.5%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

9.5x

Net Assets: $43.1B

Asset Context — Software - Infrastructure

Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Software - Infrastructure. You can manually compare ORCL against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

40.50%

High — management has strong skin in the game

Return on Equity (ROE)

11.5%

Adequate — returns are moderate

Return on Assets (ROA)

1.6%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$206M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+2.0% YoY

Debt is roughly stable

Leadership Team

Lawrence Ellison

Co-Founder, Chairman & CTO

Age 81

Pay: $5,643,948

0.131% of net income

Jeffrey Henley

Executive Vice Chairman of the Board

Age 80

Pay: $658,717

0.015% of net income

Michael Sicilia

Chief Executive Officer & Director

Age 53

Clayton Magouyrk

Chief Executive Officer & Director

Age 38

Hilary Barbara Maxson Sc.,

Chief Financial Officer

Age 47

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	4.98%	143,310,374
Vanguard Capital Management LLC	3.86%	111,115,412
State Street Corporation	2.65%	76,303,175
Vanguard Portfolio Management LLC	1.97%	56,745,677
Geode Capital Management, LLC	1.35%	38,948,218
JPMORGAN CHASE & CO	1.13%	32,492,417
Capital Research Global Investors	1.12%	32,139,254
Morgan Stanley	1.01%	29,132,672

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

1.72

High volatility — moves more than the market

Short Interest

2.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

3.89x

High leverage — significant financial risk

Current Ratio

1.11x

Adequate liquidity

52-Week Price Range

Low: $114.50 Current: $141.85 High: $345.72

Currently at 12% of 52-week range

Oracle Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis