The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 40 | 19.7x | 20.8x | Bottom tier | |
Growth | 90 | 17.3% | 6.1% | Top tier | |
Quality | 67 | 12.8% | 6.6% | Top tier | |
Safety | 32 | 4.2x | 0.7x | Bottom tier | |
Capital Return | 17 | 1.73% | 2.02% | Bottom tier | |
Momentum | 8 | -34.9% | 4.1% | Bottom tier | |
Sentiment | 52 | 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 Corporation (ORCL) is a global technology leader, offering enterprise software, cloud infrastructure (OCI), and database solutions. The company generates its revenue through software licenses, cloud subscriptions, and hardware sales, increasingly positioning itself at the center of the AI boom by providing a comprehensive suite of AI tools and applications. Its strategic transition toward cloud services and AI-powered solutions, such as Fusion applications and Autonomous Databases, allows customers to train large language models and highly efficiently optimize business operations.
In its latest financial results for the fourth quarter of fiscal year 2026, the company delivered a record performance with total revenue reaching $19.2 billion, an increase of 21%. This growth was driven by a massive 93% jump in cloud infrastructure revenue and a 10% increase in cloud application revenue, which reached $4.1 billion, while non-GAAP earnings per share rose by 24% to $2.11. For the full fiscal year 2026, revenue exceeded $67 billion, generating strong operating cash flows of $32 billion, up 54%, while the company's remaining performance obligations soared by 363% to hit an unprecedented level of $638 billion.
The company's stock is currently trading within a 52-week range of $125.58 to $345.72, reflecting a massive market capitalization of $363.1 billion amid aggressive AI investments. Analyst consensus stands at a buy recommendation with an average price target of $254.14, and the stock is currently trading above this average target, indicating strong recent market enthusiasm. Although the highest analyst target reaches $325, the tremendous future revenue visibility from the $638 billion backlog supports this premium valuation despite short-term pressures on gross margins due to data center buildouts.
Figures in the text are as of 2026-07-16; the live price is shown at the top of the page.
The company's cloud infrastructure is currently its fastest-growing segment, recording a massive 93% increase in revenue during the fourth quarter of fiscal year 2026. This hypergrowth is driven by tremendous demand for AI and compute workloads, far outpacing the 10% growth in the traditional cloud applications business. Furthermore, the global GPU utilization rate stands at an astonishing 97.5%, proving that infrastructure capacity is consumed almost as soon as it is deployed.
This record figure for remaining performance obligations, which grew by 363% year-over-year, represents a massive backlog of committed customer contracts primarily for AI infrastructure services. The company expects to recognize 12% of this amount as revenue over the next twelve months, and another 34% between 13 and 36 months, providing exceptional long-term financial visibility. This accumulated backlog ensures sustainable revenue growth and justifies the upcoming massive capital expenditures for building data centers.
To support the rapid growth of its infrastructure, the company projects a net cash outlay for capital expenditures of approximately $70 billion in fiscal year 2027. The company is strategically offsetting these costs by raising between $20 billion and $25 billion in customer prepayments, which improves the return on invested capital. Additionally, the company plans to raise about $40 billion through debt and equity issuance, including a previously announced $20 billion equity offering.
Automated analysis for informational purposes only — not investment advice.
In late June 2026, the company announced the termination of 21,000 employees as part of a strategic restructuring effort to aggressively redirect its resources toward AI and cloud computing. The immediate market reaction was negative, with the stock dropping by 5% as investors digested the scale of the workforce reduction. However, management expects this move to improve operational leverage and result in slightly negative year-over-year operating costs in dollar terms for fiscal year 2027.
The company is introducing outcome-based commercial models that tie pricing directly to the business value generated by AI agents, such as charging based on the number of candidates screened or patient throughput in the healthcare sector. Additionally, the company introduced token bundles in a limited rollout during the fourth quarter of 2026, allowing customers like Liberty Energy to purchase early access to advanced reasoning models. These flexible models help businesses effectively manage their AI budgets while ensuring a tangible return on investment.