| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 21.5x | 17.5x | Bottom tier | |
Growth | 81 | 14.1% | 7.1% | Top tier | |
Quality | 68 | 9.3% | 4.5% | Top tier | |
Safety | 35 | 5.1x | 2.6x | Bottom tier | |
Capital Return | 58 | 1.51% | 0.06% | Around median | |
Momentum | 13 | -47.5% | -0.9% | Bottom tier | |
Sentiment | 86 | 23 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
95% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, 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 combines databases, business management applications, and OCI cloud infrastructure, generating revenue from running applications and databases and providing computing resources to customers. The company connects these activities through Fusion, NetSuite, and industry applications, integrating AI agents into workflows and making its databases available within the Azure and AWS clouds. This model makes the expansion of computing an opportunity to increase consumption of Oracle services, but it also raises data centers' financing and energy needs.
Revenue for quarter 1 of fiscal year 2026, ended 2026-08-31, reached $19.3 billion, up 29.6% compared with the same quarter of the previous year, while net income reached $4.8 billion and diluted earnings per share were $1.56. The operating margin expanded to 34.8% from 28.7% in the quarter ended 2025-08-31, an increase of 6.1 percentage points. Operating cash flow for quarter 1 of fiscal year 2026 reached $23.1 billion, according to EL7 data, while management explained that the collection of customer prepayments contributed to cash flows.
In the presentation of quarter 1 of fiscal year 2027 on the 2026-09-10 call, cloud infrastructure revenue reached $7.4 billion, up 121% compared with the same quarter of the previous year, versus growth of 10% for cloud applications, 14% for Fusion, and more than 20% for industry applications. This divergence highlights the shift in the business mix toward faster-growing, more capital-intensive infrastructure. Over the last 12 months through 2026-08-31, revenue reached $67.4 billion and net income reached $17.1 billion, but free cash flow calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months was negative $39.6 billion.
Q1 FY2026 (2026-08)
Last 12 months to 2026-08-31
When: 2026-12-14
Total revenue growth for quarter 2 of fiscal year 2027 within guidance of 30% to 34% compared with the same quarter of the previous year
Cloud revenue growth for quarter 2 of fiscal year 2027 within guidance of 65% to 71% compared with the same quarter of the previous year
Adjusted earnings per share for quarter 2 of fiscal year 2027 within guidance of $1.85 to $1.93
The median analyst target in the 2026-10-19 snapshot was approximately $241, within a range of $95 to $325 across 9 analysts, a low-confidence indicative estimate that reflects growth expectations and is inherently inclined toward optimism. The industry-multiple value is $157, within a range of $90 to $346, based on next year's earnings and a median multiple of 18.5 across 87 companies; it measures Oracle's value when its earnings are priced like those of its peers. The no-growth value is $6.66 when current after-tax operating profit is held constant forever at a discount rate of 12.9%, measuring what remains if growth stops. The analyst target range overlaps with the industry-multiple range, but their medians differ clearly, and both are above the no-growth value; this difference reflects the weight of expected growth in the targets and earnings pricing relative to peers, versus the assumption of constant profit in the no-growth model.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Cloud infrastructure is the faster driver, with revenue reaching $7.4 billion in quarter 1 of fiscal year 2027, according to the 2026-09-10 call, up 121% compared with the same quarter of the previous year. Over the same period, cloud applications grew 10%, Fusion grew 14%, and industry applications grew more than 20% compared with the same quarter of the previous year. Oracle therefore combines rapid computing growth with a slower-growing applications business, with the mix shifting toward infrastructure that requires greater investment.
Net income for the last 12 months through 2026-08-31 reached approximately $17.1 billion, and operating cash flow according to EL7 data reached approximately $32.0 billion for the same period. However, free cash flow calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months was negative $39.6 billion, illustrating the impact of capital investment on remaining cash. On the 2026-09-10 call, management expected capital expenditure of between $90 billion and $95 billion for fiscal year 2027 and did not specify a timeline for a return to positive free cash flow.
Automated analysis for informational purposes only — not investment advice.
On the 2026-09-10 call, management announced additional AI contracts exceeding $30 billion during quarter 1 of fiscal year 2027 that require no additional cash from Oracle. The mechanisms include customer prepayments, customers supplying hardware, and arrangements with suppliers that allow payment as customer revenue is collected, but they do not eliminate capital expenditure. The scale of liabilities remains important, as total debt according to EL7 data reached approximately $155.9 billion in quarter 1 of fiscal year 2026, ended 2026-08-31, versus $37.1 billion in cash and short-term investments, excluding long-term securities.
A report on 2026-09-25 covered a force majeure notice that could protect Oracle from payments if the targeted 2028 start of operations for Project Jupiter is delayed, while relaying the company's confirmation that the project is on schedule. On the 2026-09-10 call, management said that the New Mexico emissions permit was being processed and that the New Mexico and Wisconsin sites do not affect fiscal year 2027 guidance. The risk lies in securing energy and permits and delivering capacity, while fiscal year 2027 revenue guidance announced on that call is at least $90 billion.
Oracle is betting on integrating AI within applications, and Fusion recorded growth of 14% in quarter 1 of fiscal year 2027 compared with the same quarter of the previous year, according to the 2026-09-10 call. Its agents executed more than 3.5 million operations in production environments during the same period, and more than 10 thousand customers used the NetSuite service to connect their data with assistants such as ChatGPT and Claude. The company announced the general availability of NetSuite Next on the call, but management also acknowledged that slower decision-making cycles among NetSuite customers left its growth below that of the other applications.
For quarter 2 of fiscal year 2027, management expects total revenue growth of between 30% and 34% compared with the same quarter of the previous year in U.S. dollars. For the same period, it expects cloud revenue growth of between 65% and 71% compared with the same quarter of the previous year, and non-GAAP earnings per share of between $1.85 and $1.93. The announcement expected on 2026-12-14 will test the ability to convert contracted demand into revenue and profitability, and continued support for fiscal year 2027 revenue guidance of at least $90 billion.