ORACLE CORP (ORCL) Stock Analysis

Analysis from 10-Q filed 2026-09-11. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 11.3%. FCF margin -40.0%. D/E 1.9x. Source: 10-Q filed 2026-09-11.

Metric	Value	Context
ROIC	11.3%	Near cost of capital
FCF Margin	-40.0%	Cash flow pressure
Debt/Equity	1.9x	Elevated debt

ROIC 11.3% — Top 50% of sector peers. FCF margin -40.0% — Bottom 10%.

Explore ORACLE CORP: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ORCL: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: ORACLE CORP earns 11.3% ROIC, Top 50% in Technology

ROIC TTM 11.3%, sector median 3.7%, Top 50%. DuPont: NOPAT margin 28.0% × asset turnover 0.3x. Operating margin 32.1%. Source: 10-Q filed 2026-09-11.

Metric	ORCL	Rating	Context
Return on Invested Capital (ROIC)	11.3%	Adequate	Above sector median of 3.7%
Return on Equity (ROE)	48.4%	Excellent	Efficient use of shareholder equity
Operating Margin	32.1%	Excellent	Efficient operations

---

Cash Flow: ORACLE CORP generates $-28.7B FCF at -40.0% margin, positive NaN/8 quarters

FCF TTM $-28.7B. FCF margin -40.0%. OCF/Net income 2.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-09-11.

Metric	ORCL	Rating	Context
Free Cash Flow Margin	-40.0%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-28.7B	Red flag	Cash burn
OCF/Net Income	2.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: ORACLE CORP at 1.9x leverage, 4.5x interest coverage

Debt/Equity 1.9x. Total debt $125.3B, cash & investments $37.1B. Interest coverage 4.5x. Source: 10-Q filed 2026-09-11.

Metric	ORCL	Rating	Context
Debt to Equity	1.9x	Warning	Elevated leverage
Net Cash Position	$-88.3B	Warning	Net debt position
Interest Coverage	4.5x	Adequate	Monitor debt obligations

---

Valuation: ORACLE CORP trades at 21.1x earnings

P/E 21.1x. EV/Sales 7.0x. FCF yield -6.9%. Dividend yield 1.5%. Source: 10-Q filed 2026-09-11.

Metric	ORCL	Rating	Context
P/E Ratio	21.1x	Adequate	Premium valuation
EV/Sales	7.0x	Adequate	Growth premium priced in
FCF Yield	-6.9%	Warning	Lower cash yield
Dividend Yield	1.5%	Adequate	Growth focus over income

---

Capital Allocation: ORACLE CORP returns 1.4% shareholder yield

Total shareholder yield 1.4% (div 1.5%). Share count +6.4% YoY. Capital returned $5.8B TTM. Source: 10-Q filed 2026-09-11.

Metric	ORCL	Rating	Context
Total Shareholder Yield	1.4%	Adequate	Dividend + buyback yield combined
Share Count Change (YoY)	6.4%	Warning	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$5.8B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	11.3%	Top 50%	3.0x above
Free Cash Flow Margin	-40.0%	Bottom 10%	-3.9x below
Operating Margin	32.1%	Top 5%	7.4x above
Return on Equity (ROE)	48.4%	Top 10%	9.1x above
P/E Ratio	21.1x	N/A	-

---

Financial Scorecard

Metric	ORCL	Rating	Sector Context
Return on Invested Capital (ROIC)	11.3%	Adequate	Top 50% of sector (median: 3.7%)
Free Cash Flow Margin	-40.0%	Red flag	Thin cash margins
Debt to Equity Ratio	187.7%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	21.1x	Adequate	Fair value
Free Cash Flow Yield	-6.9%	Red flag	Growth-focused valuation

---

Frequently Asked Questions

Q: What is ORACLE CORP's Return on Invested Capital (ROIC)?

ORACLE CORP (ORCL) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.3%. The 8-quarter median ROIC is 13.0% with a declining trend. Sector median 3.7%. Source: 10-Q filed 2026-09-11.

Q: What is ORACLE CORP's Free Cash Flow Margin?

ORACLE CORP (ORCL) has a free cash flow margin of -40.0%, generating $-28.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-09-11.

Q: What is ORACLE CORP's P/E ratio and how does it compare to peers?

ORACLE CORP (ORCL) trades at a P/E ratio of 21.1x, which is above the sector median of N/A. EV/Sales 7.0x. Source: 10-Q filed 2026-09-11.

Q: Does ORACLE CORP pay a dividend?

ORACLE CORP (ORCL) currently pays a dividend yield of 1.5%. Total shareholder yield (dividend + buybacks) 1.4%. Source: 10-Q filed 2026-09-11.

Q: How much debt does ORACLE CORP have?

ORACLE CORP (ORCL) has a debt-to-equity ratio of 1.9x with total debt of $125.3 billion. Interest coverage 4.5x. Net debt $88.3 billion. Source: 10-Q filed 2026-09-11.

Q: What is ORACLE CORP's revenue and earnings growth?

ORACLE CORP (ORCL) grew revenue by 21.6% year-over-year. EPS +49.1% YoY. Source: 10-Q filed 2026-09-11.

Q: How does ORACLE CORP compare to competitors in Technology?

Compared to other companies in Technology, ORACLE CORP (ORCL) shows: ROIC 11.3%, sector median 3.7% (Top 50%). FCF margin -40.0%, sector median 10.3%. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with ORACLE CORP?

Quantitative warning flags for ORACLE CORP (ORCL): 1) FCF margin -40.0% (below 5%); 2) ROIC declining -5.4% over 8 quarters; 3) debt/equity 1.9x (above 1.5x threshold); 4) interest coverage 4.5x (below 5x). Source: 10-Q filed 2026-09-11.

---

Data Source: Data sourced from 10-Q filed 2026-09-11. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.