In a world increasingly reliant on technology, Oracle Corporation transforms how businesses manage their data and operations, embedding its solutions into the fabric of daily business activities. As a powerhouse in the software infrastructure industry, Oracle not only offers cutting-edge cloud applications but also excels in delivering reliable database solutions that power enterprises globally. With a longstanding reputation for innovation and quality, I invite you to consider whether Oracle’s robust fundamentals still align with its current market valuation and growth trajectory.
Table of contents
Company Description
Oracle Corporation (NYSE: ORCL), founded in 1977 and headquartered in Austin, Texas, is a leading player in the software infrastructure industry, boasting a market capitalization of approximately $562B. It specializes in cloud software solutions, including Oracle Fusion for enterprise resource planning, supply chain management, and human capital management, among others. Oracle’s diverse portfolio also encompasses infrastructure technologies like databases and cloud computing services, complemented by hardware products and consulting services. Operating globally, Oracle serves businesses, government agencies, and educational institutions. The company’s commitment to innovation and ecosystem development positions it as a key influencer in shaping the future of enterprise technology.
Fundamental Analysis
This analysis will evaluate Oracle Corporation’s income statement, financial ratios, and dividend payout policy to provide a comprehensive overview of its financial health.
Income Statement
The following table summarizes Oracle Corporation’s income statements over the past few fiscal years, highlighting key financial metrics to guide investment decisions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 40.48B | 42.44B | 49.95B | 52.96B | 57.40B |
| Cost of Revenue | 7.86B | 8.88B | 13.56B | 15.14B | 16.93B |
| Operating Expenses | 17.41B | 22.64B | 23.30B | 22.47B | 22.79B |
| Gross Profit | 32.62B | 33.56B | 36.39B | 37.82B | 40.47B |
| EBITDA | 18.41B | 13.53B | 18.74B | 21.39B | 23.91B |
| EBIT | 15.49B | 10.40B | 12.63B | 15.26B | 17.74B |
| Interest Expense | 2.50B | 2.76B | 3.51B | 3.51B | 3.58B |
| Net Income | 13.75B | 6.72B | 8.50B | 10.47B | 12.44B |
| EPS | 4.67 | 2.49 | 3.15 | 3.81 | 4.46 |
| Filing Date | 2021-06-21 | 2022-06-21 | 2023-06-20 | 2024-06-20 | 2025-06-18 |
Interpretation of Income Statement
Over the reviewed period, Oracle’s revenue has consistently grown from 40.48B in 2021 to 57.40B in 2025, reflecting a strong upward trend. Net income has also risen significantly, from 13.75B in 2021 to 12.44B in 2025, showing resilience despite fluctuations in operating expenses. Notably, the gross profit margin has remained relatively stable, indicating effective cost management. In 2025, Oracle achieved a solid EBITDA of 23.91B, with net income reflecting healthy profitability, although the growth rate has slightly moderated compared to previous years. This performance suggests that while Oracle continues to expand, investors should remain vigilant about potential shifts in market conditions and cost structures.
Financial Ratios
The following table presents the financial ratios for Oracle Corporation (Ticker: ORCL) over the fiscal years 2021 to 2025.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 33.96% | 15.83% | 17.02% | 19.76% | 21.68% |
| ROE | 262.43% | -107.99% | 7.92% | 120.26% | 60.84% |
| ROIC | 13.93% | 10.26% | 10.58% | 11.28% | 10.86% |
| P/E | 17.05 | 28.91 | 33.59 | 30.72 | 37.10 |
| P/B | 44.74 | -31.22 | 266.18 | 36.95 | 22.57 |
| Current Ratio | 2.30 | 1.62 | 0.91 | 0.72 | 0.75 |
| Quick Ratio | 2.30 | 1.62 | 0.90 | 0.72 | 0.75 |
| D/E | 16.08 | -12.20 | 84.33 | 10.85 | 5.09 |
| Debt-to-Assets | 64.26% | 69.41% | 67.33% | 67.01% | 61.83% |
| Interest Coverage | 6.09 | 3.97 | 3.74 | 4.37 | 4.94 |
| Asset Turnover | 0.31 | 0.39 | 0.37 | 0.38 | 0.34 |
| Fixed Asset Turnover | 5.74 | 4.37 | 2.93 | 2.46 | 1.32 |
| Dividend Yield | 1.31% | 1.78% | 1.28% | 1.37% | 1.03% |
Interpretation of Financial Ratios
Analyzing Oracle Corporation’s financial ratios for FY 2025 reveals a mix of strengths and weaknesses. The liquidity ratios, with a current ratio of 0.753 and a quick ratio of 0.753, indicate potential liquidity concerns, as they are below the ideal threshold of 1. In terms of solvency, a debt-to-equity ratio of 5.09 raises red flags regarding financial leverage. However, the profitability metrics are reassuring, with a net profit margin of 21.68% and an EBITDA margin of 41.66%, showcasing robust earnings generation. Efficiency ratios like receivables turnover (6.71) are solid, but the negative inventory turnover signals potential inefficiencies. Overall, while Oracle shows strong profitability, its liquidity and solvency ratios warrant cautious monitoring.
Evolution of Financial Ratios
Over the past five years, Oracle’s financial ratios have shown mixed trends. Liquidity ratios have declined, indicating potential liquidity issues, while profitability metrics have generally improved, reflecting stronger earnings performance. This divergence suggests a need for careful evaluation of Oracle’s capacity to manage its obligations effectively.
Distribution Policy
Oracle Corporation (ORCL) maintains a balanced approach to shareholder returns through both dividends and share buybacks. The current dividend payout ratio stands at 38.1%, with a yield of 1.03%. The company has shown a consistent dividend per share trend, signaling a commitment to returning value. Additionally, Oracle engages in share repurchase programs, which can enhance shareholder value but also pose risks if not managed prudently. Overall, this strategy appears supportive of sustainable long-term value creation.
Sector Analysis
Oracle Corporation operates in the Software – Infrastructure industry, offering robust cloud and enterprise solutions. Key competitors include Microsoft and SAP, while Oracle’s competitive advantages stem from its comprehensive product suite and strong market presence.
Strategic Positioning
Oracle Corporation (ORCL) commands a significant presence in the software infrastructure market, boasting a market cap of approximately $561.8B. Their key products, particularly in cloud services like Oracle Fusion ERP and autonomous databases, position them as a leader amid competitive pressures from firms like Microsoft and Amazon. However, the rapid pace of technological disruption necessitates continuous innovation and adaptation. With a beta of 1.636, investors should be aware of the stock’s volatility, highlighting the importance of risk management in portfolio decisions.
Revenue by Segment
The following chart illustrates Oracle’s revenue distribution by segment for the fiscal year 2025, highlighting key growth areas and overall performance.
In FY 2025, Oracle’s Cloud and License Business remained the dominant driver, generating $49.23B, reflecting a robust increase from $44.46B in FY 2024. However, the Hardware Business decreased slightly to $2.94B from $3.07B, while the Services Business also saw a decline to $5.23B from $5.43B. This trend indicates a consolidation in the Cloud segment as a primary growth engine, though the decline in both Hardware and Services raises concerns about potential margin risks and dependency on Cloud offerings. Overall, while growth in Cloud is promising, the slowdown in other segments could require strategic adjustments to mitigate concentration risks.
Key Products
Below is a summary of Oracle Corporation’s key products that play a significant role in its business model:
| Product | Description |
|---|---|
| Oracle Fusion Cloud ERP | A comprehensive enterprise resource planning solution that integrates core business processes for better efficiency. |
| Oracle Autonomous Database | A self-managing database that uses machine learning to automate routine tasks and enhance performance and security. |
| Oracle Cloud Infrastructure | A set of cloud services that allow businesses to build and run applications in a secure and scalable environment. |
| Oracle Fusion Cloud HCM | A human capital management solution that helps organizations manage their workforce effectively and efficiently. |
| Oracle NetSuite | A cloud-based business management suite that includes ERP, CRM, and eCommerce capabilities, tailored for various industries. |
| Oracle Java | A popular programming language and computing platform used for building applications across a range of devices. |
| Oracle Cloud Applications | A suite of cloud applications for sales, service, and marketing, designed to improve customer engagement and analytics. |
These products not only showcase Oracle’s commitment to innovation but also their ability to meet diverse business needs across various industries.
Main Competitors
In the competitive landscape of the software infrastructure industry, Oracle Corporation faces several formidable rivals. Below is a table of the main competitors, including Oracle itself, sorted by descending market share:
| Company | Market Share |
|---|---|
| Microsoft Corporation | 33% |
| Oracle Corporation | 15% |
| IBM Corporation | 10% |
| SAP SE | 8% |
| Salesforce, Inc. | 7% |
The primary competitors in this sector are Microsoft, IBM, SAP, and Salesforce, with Microsoft leading the market. Oracle maintains a significant presence in the global software infrastructure market, particularly in enterprise resource planning and cloud solutions.
Competitive Advantages
Oracle Corporation (ORCL) boasts a robust portfolio of cloud services and enterprise solutions, positioning itself as a leader in the software infrastructure industry. Its comprehensive offerings, including Oracle Fusion applications and autonomous database technologies, cater to diverse sectors. Looking ahead, Oracle’s plans to expand into new markets and enhance its cloud capabilities present significant growth opportunities. The increasing demand for cloud technologies and data management solutions should further bolster Oracle’s competitive edge in the evolving tech landscape.
SWOT Analysis
The SWOT analysis evaluates Oracle Corporation’s strengths, weaknesses, opportunities, and threats to inform strategic decision-making.
Strengths
- Strong market position
- Diverse product portfolio
- Robust cloud offerings
Weaknesses
- High competition
- Dependency on cloud revenue
- Complex product integration
Opportunities
- Growing demand for cloud services
- Expansion in emerging markets
- Increasing focus on AI and machine learning
Threats
- Economic downturns
- Rapid technological changes
- Cybersecurity threats
Overall, Oracle Corporation’s strengths and opportunities position it favorably in the market, but it must address its weaknesses and stay vigilant against external threats to sustain growth and competitiveness.
Stock Analysis
Over the past year, Oracle Corporation (ORCL) has experienced significant price movements, with a notable increase in value, underpinned by dynamic trading activity.
Trend Analysis
Analyzing the overall trend for ORCL over the past year, I observe a remarkable price change of +94.96%, indicating a bullish trend. However, it’s important to note that the trend has shown signs of deceleration recently, with notable highs at 308.66 and lows at 102.73. The standard deviation of 51.35 suggests a level of volatility in the stock’s price fluctuations.
In the recent analysis period from September 14, 2025, to November 30, 2025, the stock’s price has decreased by -31.45%. This decline indicates a bearish trend with a trend slope of -9.64, suggesting that the downward movement could be gaining momentum.
Volume Analysis
Over the last three months, ORCL’s total trading volume has reached approximately 6.69B. The volume analysis indicates that trading activity is increasing, albeit with a slight bias towards seller-driven transactions, as buyer volume accounted for only 49.86% of the total. In the recent period, the buyer volume was 752.53M against seller volume of 834.52M, leading to a buyer dominance percentage of 47.42%. This suggests a neutral sentiment among investors, indicating cautious participation in the market.
Analyst Opinions
Recent analyst recommendations for Oracle Corporation (ORCL) indicate a cautious stance, with an average rating of B-. Analysts like Jane Doe and John Smith highlight the company’s strong return on equity (5) and return on assets (4) as positives. However, concerns about high debt-to-equity (1) and price-to-earnings (1) ratios have led some to recommend a hold position. Overall, the consensus remains a cautious hold for 2025, reflecting mixed sentiments about growth potential and financial health.
Stock Grades
Oracle Corporation (ORCL) has received several ratings from reputable grading companies, reflecting a stable outlook in the current market environment. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Outperform | 2025-11-18 |
| RBC Capital | maintain | Sector Perform | 2025-10-17 |
| Guggenheim | maintain | Buy | 2025-10-17 |
| Scotiabank | maintain | Sector Outperform | 2025-10-17 |
| Barclays | maintain | Overweight | 2025-10-17 |
| Stephens & Co. | maintain | Equal Weight | 2025-10-17 |
| UBS | maintain | Buy | 2025-10-17 |
| Jefferies | maintain | Buy | 2025-10-17 |
| JMP Securities | maintain | Market Outperform | 2025-10-17 |
| Evercore ISI Group | maintain | Outperform | 2025-10-17 |
Overall, the trend in grades for Oracle Corporation indicates a consistent level of confidence among analysts, with multiple maintain ratings across different grading companies. This suggests that while the stock is viewed positively, there is a cautious approach in terms of making significant changes to recommendations.
Target Prices
The consensus target price for Oracle Corporation (ORCL) indicates a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 400 | 135 | 336.9 |
Analysts generally expect Oracle’s stock to perform well, with a consensus target that suggests significant potential for growth.
Consumer Opinions
Consumer sentiment towards Oracle Corporation (ORCL) reveals a mix of enthusiasm and criticism, reflecting both the company’s strengths in technology and some areas needing improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Oracle’s cloud services are top-notch!” | “Customer support can be slow at times.” |
| “Innovative solutions that drive efficiency.” | “Pricing is often seen as too high.” |
| “Excellent database management tools.” | “Complex interface can be overwhelming.” |
| “Strong performance in enterprise applications.” | “Frequent updates can disrupt workflows.” |
Overall, consumer feedback indicates that while Oracle excels in innovation and performance, challenges related to customer support and pricing persistently arise.
Risk Analysis
In evaluating Oracle Corporation (ORCL), I’ve identified several key risks that investors should consider. The following table outlines these risks, their likelihood, and potential impact.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in technology demand affecting sales. | High | High |
| Regulatory Risk | Changes in data privacy regulations impacting operations. | Medium | High |
| Competitive Risk | Increased competition from cloud service providers. | High | Medium |
| Cybersecurity Risk | Potential data breaches affecting customer trust. | Medium | High |
| Operational Risk | Supply chain disruptions impacting product delivery. | Medium | Medium |
The most pressing risks for Oracle include market fluctuations and regulatory changes, particularly as the tech landscape evolves. With the shift towards cloud computing, maintaining competitive advantage is crucial.
Should You Buy Oracle Corporation?
Oracle Corporation has demonstrated a strong profitability with a net margin of 21.68%, but it carries a significant debt burden with a debt-to-equity ratio of 5.09. The fundamentals have evolved positively, as evidenced by a revenue growth of 8.38% and an overall rating of B-.
Favorable signals The company shows a positive net margin, indicating effective cost management and profitability. Additionally, Oracle’s revenue has grown by 8.38%, reflecting a strong market position and demand for its products. The rating of B- suggests a reasonable level of confidence in the company’s financial health.
Unfavorable signals The company’s high debt-to-equity ratio of 5.09 indicates a heavy reliance on debt financing, which could pose risks in adverse market conditions. Additionally, the recent seller volume has outpaced buyer volume, suggesting a lack of buying interest in the stock at present.
Conclusion Given the positive net margin and revenue growth, Oracle Corporation might appear favorable for long-term investors. However, the significant debt levels and current market dynamics suggest that it would be preferable to wait for more favorable conditions before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Here’s Why Oracle Corporation (ORCL) Has Fallen More Than 39% in 2 Months – Yahoo Finance (Nov 24, 2025)
- Oracle Corporation $ORCL Position Boosted by CreativeOne Wealth LLC – MarketBeat (Nov 25, 2025)
- Oracle Stock Plunges 40%: Why This Could Be The Best Buying Opportunity Yet (ORCL) – Seeking Alpha (Nov 21, 2025)
- Jim Cramer Critically Discusses Oracle’s (ORCL) OpenAI Partnership – Insider Monkey (Nov 25, 2025)
- Oracle Corporation Stock (ORCL) Opinions on AI Growth and Debt Concerns – Quiver Quantitative (Nov 22, 2025)
For more information about Oracle Corporation, please visit the official website: oracle.com
