ORCL
ORACLE CORP
Technology • CIK: 0001341439
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Market Cap
$413.30B
P/E (TTM)
25.6x
Rev Growth (TTM)
+14.9%
Net Margin (TTM)
25.3%
FCF Yield (TTM)
-6.0%
FCF Margin (TTM)
-38.6%
What Changed
10-Q Q3 FY2026 (filed 2026-03-11) vs 10-Q Q2 FY2026 (filed 2025-12-11)
Hidden Liability Riskmoderate — $248B in off-balance sheet lease...→low — no significant off-balance sheet exposures beyond...
Accounting Red Flags5 flags: restructuring expenses +387% YoY, capex...→1 flag: revenue reclassification for presentation...
Capital Structure Dilution Risknot flagged (risk factors deferred to 10-K; no new or...→HIGH — potential for reduced ownership stake and lower...
Earnings Quality Score7/10→8/10
Top Positives (LLM Assessment)1 positive→3 positives
FCF margin (currently -38.6%): monitor for improvement toward positive territory...·Capital structure dilution: track preferred stock conversion volume and ATM...·Accounting red flags (currently 1): confirm revenue reclassification remains a...
Filing Intelligence
7.0/10
10-Q filed Mar 11, 2026 • Q3 2026
Executive Summary
The company has a strong liquidity position, bolstered by recent debt and preferred stock issuances, providing ample resources for future investments and operations.. No significant off-balance sheet...
Key Concerns
- ●Reclassification of revenues and related disclosures for presentation conformity, although management states it did not impact total...
- ●No significant off-balance sheet exposures beyond standard legal proceedings were identified.
- ●The company has renewed and increased its revolving credit facility and commercial paper program, providing substantial liquidity, but also...
Key Strengths
- ●The company is experiencing strong growth in its cloud business, with cloud revenues increasing significantly and expected to continue...
- ●Investments in cloud infrastructure, particularly data center expansion, are substantial and driving increased capital expenditures and...
- ●Oracle continues to strategically shift its focus towards cloud offerings, which impacts hardware sales but is seen as a long-term growth...
Cash Flow Health
Free Cash Flow3/8 positive
TTM$-24.7B
Q3 '26
$-11.5B-15%
Q2 '26
$-10.0B-2653%
FCF Margin
TTM-38.6%
Q3 '26-66.8%-8%
Sector: 9.1%Below Avg
OCF Margin36.7%
OCF/NI1.45x
CapEx Coverage0.5x
FCF Yield-6.0%
FCF Growth (2Y)–
Cash Conversion Cycle
52 days
DSO: 52+DIO: –−DPO: –
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.4%
Div Yield1.4%
+Buyback (TTM)0.1%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)1.4%
Free Cash Flow (TTM)$-24.7B
Stock Repurchases (TTM)$245.0M
Capital Return / FCF-24.0%
Est. Dividends Paid (TTM)$5.7B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
13.0%
Stable
-0.0% YoY-5.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
27.0%
8Q: 27.0%
Asset Turnover
0.34x
8Q: 0.37x
Leverage (1+D/E)
4.24x
D/E: 3.24x
DuPont: 38.8% ≈ 13.0% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.15x
8Q:1.81x
-194.2%
Invested Cap Turn
0.48x
8Q:0.56x
-24.0%
CapEx Intensity
36.2%
8Q:26.1%
CapEx/Depreciation
7.59x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $64.1B | $17.2B↑7.0% | $16.1B↑7.6% | $14.9B↓6.1% | $15.9B↑12.5% | $14.1B↑0.5% | $14.1B↑5.7% | $13.3B↓6.9% | $14.3B |
Operating Income | $19.6B | $5.5B↑15.5% | $4.7B↑10.6% | $4.3B↓16.3% | $5.1B↑17.2% | $4.4B↑3.3% | $4.2B↑5.7% | $4.0B↓14.8% | $4.7B |
Net Income | $16.2B | $3.7B↓39.7% | $6.1B↑109.6% | $2.9B↓14.6% | $3.4B↑16.7% | $2.9B↓6.8% | $3.2B↑7.6% | $2.9B↓6.8% | $3.1B |
Operating Cash Flow | $23.5B | $7.2B↑246.1% | $2.1B↓74.6% | $8.1B↑32.2% | $6.2B↑3.8% | $5.9B↑355.0% | $1.3B↓82.4% | $7.4B↑22.1% | $6.1B |
Free Cash Flow | $-24.7B | $-11.5B↓15.2% | $-10.0B↓2653.3% | $-362.0M↑87.6% | $-2.9B↓4216.9% | $71.0M↑102.7% | $-2.7B↓152.0% | $5.1B↑56.1% | $3.3B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
25.6x
Volatile
8Q: 134.5x+168%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
25.6x
vs – sector
Cash Flow
-19.8x
EV/FCF vs –
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
2.0P/E per %ROIC
ROIC: 13.0%
Shareholder Returns
Dividend
1.4%
Buyback
0.1%
Total Yield
1.4%
Market Cap$413.30B
EV$490.98B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
97/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
63.5%
8Q:–
Return on Invested Capital (ROIC)Top 25%
13.0%
8Q:–
-5.8%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 27.0%
Asset Turnover: 0.34x
Earnings Quality
Cash Conversion
1.45x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin–
Capital Efficiency
Invested Capital Turnover0.48x
Working Capital
Cash Conversion Cycle52 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
65/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
14.9%
OpInc Growth YoY
25.4%
EPS Growth YoY
30.8%
FCF 3Y CAGR
N/A
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
—
Operating
30.6%
Top 25% in sector
Net
25.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-63.9 pts
FCF: -38.6% | Net: 25.3%
FCF margin lags net margin by 63.9 pts
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $85.59B
Interest Coverage
–
Balance sheet risk & solvency analysis