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Oracle Corporation (ORCL)

Technology · Software—Infrastructure · NYSE

$138.07

+0.56%

Investru Score

44.0 / 100

Weak

Why is ORCL moving?

ORCL is up 0.56% today, a bounce against its broader downtrend.

Recent coverage: Oracle Has the Biggest Upside of Any Megacap Right Now: 54%

Business overview

  • The sector is Technology.
  • The industry is Software—Infrastructure.

These classifications place the company firmly in the enterprise infrastructure software space, where scale and cloud adoption drive operations.

Bull case

If revenue growth sustains its 17.3% pace alongside a forward P/E of 16.54, the stock could benefit from multiple expansion as earnings compound. Improved operational scaling could also transition free cash flow margin out of negative territory, easing balance sheet worries.

Bear case

A persistent downtrend and negative free cash flow yield of -6% combine with heavy leverage, heightening vulnerability to macroeconomic shocks or higher interest rates. If debt servicing costs rise against an interest coverage of 4.48, financial flexibility could degrade rapidly.

ORCL’s Investru Score changed -5.4 points recently. Want to know exactly what changed and why? That’s a Pro feature →

Score breakdown

Financial Quality
47
Growth
61
Profitability
59
Balance Sheet
13
Valuation
56
Momentum
9

Score history

-5.4 over the last 32 days, driven mainly by momentum (-61).

Financial quality

  • The return on invested capital is 9.9%.
  • The return on equity is 40.2%.
  • The free cash flow margin is -35.2%.
  • The earnings quality is 1.87.

These figures show high profitability relative to shareholder equity, though negative free cash flow generation and cash conversion introduce notable quality concerns.

ROIC
9.9%
ROE
40.2%
FCF Margin
-35.2%
Free Cash Flow (TTM)
$-23.7B
Earnings Quality (OCF ÷ Net Income)
1.9x

Valuation

  • The trailing P/E ratio is 22.67.
  • The forward P/E ratio is 16.54.
  • The trailing PEG ratio is 0.66.
  • The forward PEG ratio is 0.48.
  • The median PEG ratio is 0.57.
  • The EV-to-EBITDA ratio is 17.2.
  • The price-to-sales ratio is 5.89.
  • The free cash flow yield is -6.0%.

These multiples suggest reasonable earnings-based valuation when factoring in projected growth, offset by a negative free cash flow yield.

P/E (TTM)
22.7x
Forward P/E
16.5x
PEG (P/E ÷ EPS Growth)
0.7x
Company Median PEG
0.6x
Price / Sales
5.9x
EV / EBITDA
17.2x
FCF Yield
-6.0%

Key risks

  • High debt-to-equity of 3.05 and negative free cash flow yield of -6% could strain liquidity if refinancing conditions tighten.(Probability: High · Impact: High)
  • An extended technical downtrend with price sitting 15.5% below the 200-day moving average may prolong negative sentiment.(Probability: High · Impact: Medium)
  • A cash-to-debt ratio of 0.24 limits immediate liquidity buffers to service obligations independently of ongoing cash generation.(Probability: Medium · Impact: High)

Latest earnings

Q1 FY26 EPS
$1.56
Estimate
Data unavailable
Surprise
Data unavailable
  • The year-over-year EPS growth is 34.3%.
  • The earnings quality is 1.87.

These figures point to robust bottom-line expansion backed by healthy earnings metrics, though cash flow realization remains an area to monitor.

SEC filings

Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.

Market cap $397.6B · 52-week range $114.50–$322.54 · market data as of Oct 1, 2026, 4:04 PM ET · latest SEC filing: 2026-06-22

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Analyze ORCL with Investru AI

Not investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.