| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | 27.2x | 18.2x | Bottom tier | |
Growth | 85 | 17.4% | 7.1% | Top tier | |
Quality | 71 | 11.0% | 4.5% | Top tier | |
Safety | 36 | 4.3x | 2.6x | Bottom tier | |
Capital Return | 41 | 1.25% | 2.10% | Around median | |
Momentum | 30 | -35.7% | 2.9% | Bottom tier | |
Sentiment | 63 | 23 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Oracle operates through an integrated technology ecosystem combining OCI cloud infrastructure, databases, and enterprise applications. It generates revenue from running computing and artificial intelligence workloads, database services on Oracle Cloud and partner clouds, applications such as Fusion, as well as healthcare and public-sector solutions; this integration enables it to sell infrastructure, data, applications, and artificial intelligence tools to the same customer.
In Q4 FY2026, Oracle reported record revenue of $19.2 billion, up 21%, and net income of $4.3 billion according to EDGAR data. Non-GAAP operating income was approximately $8.6 billion, equivalent to a calculated margin of about 44.8%, while non-GAAP earnings per share rose 24% to $2.11, or 20% after excluding a one-time investment gain.
The cloud mix drove Q4 FY2026 results; cloud infrastructure revenue grew 93%, Oracle Cloud applications revenue reached approximately $4.1 billion with 10% growth, and the cloud database business grew 29%. For FY2026, revenue reached $67.4 billion and net income was $17.1 billion, while gross margin declined by about five points due to infrastructure buildout and the accelerating mix of infrastructure revenue, with operating efficiency offsetting part of this pressure.
The analyst consensus is Buy, with an average price target of $240.57, but the target range is extremely wide at $95 to $325, indicating fundamental disagreement about the value of the transition to artificial intelligence infrastructure. The average target is below the 52-week range high of $345.72, while the broad repricing between the range boundaries of $114.5 and $345.72 reflects the strength of OCI growth on one hand and the risks of capital expenditure, credit, and margin pressure on the other.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue rose 21% to $19.2 billion, driven by 93% growth in cloud infrastructure revenue and 10% growth in Oracle Cloud applications revenue to $4.1 billion. Net income according to EDGAR data reached approximately $4.3 billion, while non-GAAP operating income reached $8.6 billion. Non-GAAP earnings per share also rose to $2.11, up 24%, or 20% after excluding a one-time investment gain.
Remaining performance obligations reached $638 billion at the end of Q4 FY2026, up 363%, and represent contracts that provide future revenue visibility rather than revenue recognized immediately. Oracle expects to recognize approximately 12% of them during the following twelve months and another 34% between months 13 and 36. This momentum includes $67 billion in artificial intelligence infrastructure contracts signed during the same quarter.
Management expects total revenue growth of 34% in constant currency in FY2027, with non-GAAP earnings per share of $8.05 after excluding one-time investment gains. For Q1 FY2027, it expects revenue growth of between 27% and 29% and cloud revenue growth of between 58% and 64%. It also expects non-GAAP earnings per share of between $1.72 and $1.76, with revenue and earnings accelerating in the second half of FY2027 as additional data center capacity becomes operational.
Automated analysis for informational purposes only — not investment advice.
Oracle introduced more than one thousand artificial intelligence agents across its applications during FY2026, while continuing to include many core features at no additional charge. In Q4 FY2026, it began a limited rollout of token packages to 33 customers, including Aon Services Corporation and Liberty Energy, for access to advanced inference capabilities. It also uses outcome-based pricing models, such as charging for interview agents based on the number of candidates screened and for hospitality agents based on the share of upselling transactions.
Operating cash flow reached $32 billion in FY2026, but it was lower than net cash capital expenditure of $48 billion. In FY2027, the company expects net capital expenditure of approximately $70 billion and plans to raise about $40 billion from debt and equity, including a $20 billion share issuance. Expected upfront payments of between $20 billion and $25 billion and some customer-provided-hardware structures reduce funding requirements, but news on August 4 and July 29, 2026 showed that credit rating risk and the cost of default protection remain.
The analyst consensus is Buy, with an average price target of $240.57, a highest target of $325, and a lowest target of $95. The average target is below the 52-week range peak of $345.72, limiting the usefulness of the previous peak as an automatic valuation benchmark. The wide range of targets reflects the balance between 93% cloud infrastructure growth and $638 billion in remaining performance obligations versus the decline in gross margin, the capital expenditure plan, and financing and execution risks.
