Oracle Corporation ORCL
NYSEInfrastructure softwareFinancials to Aug 31, 2026 · Updated Oct 9, 2026
Moat ranks
Balance sheet
| $B | May 31 | Aug 31 |
|---|---|---|
| Cash | 31.3 | 36.4 |
| Securities | 0.6 | 0.7 |
| Restricted cash | – | 2.6 |
| Debt | 129.5 | 125.3 |
| Net cash | -97.6 | -88.3 |
| Equity | 42.5 | 66.8 |
- Debt / EBITDA
- 3.69×
- Debt / equity
- 1.88×
- Leases (8/31/26)
- $43.8B
- Diluted shares
- 3,000M
- Book value / share
- $22.26
- Price / book
- 6.2×
- Net cash / share
- −$29.42
- Market cap
- $411.3B
- Enterprise value
- $499.6B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 29.6% | +17.4 pts | |
| Operating margin | 34.8% | +6.1 pts | |
| FCF margin | -27.9% | -25.5 pts | |
| Capex / revenue | 147.3% | +90.4 pts | |
| Cloud applications revenue | $4.2B | +10% | |
| Cloud infrastructure revenue | $7.4B | +121% | |
| Software support revenue | $4.9B | -1% | |
| Remaining performance obligations | ~$664.0B | +46% | |
| Datacenter capacity delivered (MW) | 850 | – | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About ORCL
Oracle sells enterprise software and support, cloud applications, cloud infrastructure, hardware and implementation services. Software support protects an installed base that is costly to replace; integrated application suites reduce the work of connecting business processes.
- Suite Bundling
Oracle combines finance, HR, supply-chain and other applications around common data and security.
- Capex Knowhow Scale
Oracle operates the computing, networking and database capacity behind OCI.
- Long Term Contracts
Large cloud commitments provide a forward workload book and can keep scarce capacity reserved for years.
- Switching Costs General
Mission-critical database and middleware systems require tested integrations, trained staff and dependable upgrades.
- Oct 8, 2026
Bloomberg reported Oracle used trucked natural gas near Salt Lake City and for early work at an OpenAI campus in Texas while pipeline access was delayed. Temporary fuel can support delivery but does not replace dependable long-term power infrastructure.
- Oct 7, 2026
Reports describe Oracle talks with Apollo and Goldman Sachs to finance chips through an investor-owned vehicle. The deal is unconfirmed; leasing may defer cash payments while adding future obligations.
- Oct 2, 2026
Oracle committed to a planned Point Beach electricity subscription associated with about $300 million of rising energy costs; regulatory approval and power economics remain conditions.
- Oct 1, 2026
Oracle and King Faisal Specialist Hospital signed a non-binding healthcare memorandum, creating a potential data and cloud opportunity without a confirmed revenue contract.
- Sep 30, 2026
Oracle and STACK said flooding reached Project Jupiter without damaging critical infrastructure and kept their planned schedule; weather remains another delivery risk.
Ownership
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | TTM | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 8.96 | 9.29 | 10.59 | 11.86 | 13.39 | 15.23 | 18.06 | 18.76 | 20.03 | 23.11 | 23.93 | +11.1%/yr | |
| Cash flow | 3.35 | 3.63 | 3.90 | 3.99 | 5.26 | 3.42 | 6.21 | 6.61 | 7.26 | 10.97 | 15.65 | +14.1%/yr | |
| Earnings | 2.24 | 0.85 | 2.97 | 3.08 | 4.55 | 2.41 | 3.07 | 3.71 | 4.34 | 5.86 | 6.31 | +11.3%/yr | |
| Free cash flow | 2.87 | 3.22 | 3.45 | 3.51 | 4.55 | 1.80 | 3.06 | 4.18 | -0.14 | -8.13 | -9.57 | – | |
| Capex | 0.48 | 0.41 | 0.44 | 0.47 | 0.71 | 1.62 | 3.14 | 2.43 | 7.40 | 19.10 | 25.22 | +50.6%/yr | |
| Dividends | 0.62 | 0.74 | 0.79 | 0.93 | 1.01 | 1.24 | 1.33 | 1.56 | 1.65 | 1.99 | 1.98 | +13.7%/yr | |
| Book value | 12.77 | 10.94 | 5.84 | 3.67 | 1.73 | -2.23 | 0.39 | 3.08 | 7.14 | 14.59 | 22.26 | +1.5%/yr | |
| Diluted shares (M) | 4,217 | 4,238 | 3,732 | 3,294 | 3,022 | 2,786 | 2,766 | 2,823 | 2,866 | 2,914 | 3,000 | -4.0%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 37.8 | 39.4 | 39.5 | 39.1 | 40.5 | 42.4 | 50.0 | 53.0 | 57.4 | 67.4 | 71.8 | +6.6%/yr | |
| Operating income | 12.9 | 13.3 | 13.5 | 13.9 | 15.2 | 10.9 | 13.1 | 15.4 | 17.7 | 20.6 | 23.1 | +5.3%/yr | |
| Net income | 9.5 | 3.6 | 11.1 | 10.1 | 13.7 | 6.7 | 8.5 | 10.5 | 12.4 | 17.1 | 18.9 | +6.8%/yr | |
| Free cash flow | 12.1 | 13.7 | 12.9 | 11.6 | 13.8 | 5.0 | 8.5 | 11.8 | -0.4 | -23.7 | -28.7 | – | |
| Buybacks | 3.6 | 11.3 | 36.1 | 19.2 | 20.9 | 16.2 | 1.3 | 1.2 | 0.6 | 0.1 | 0.0 | -33.1%/yr | |
| Dividends | 2.6 | 3.1 | 2.9 | 3.1 | 3.1 | 3.5 | 3.7 | 4.4 | 4.7 | 5.8 | 5.9 | +9.2%/yr | |
| Net cash | 8.2 | 6.6 | -18.3 | -28.5 | -37.7 | -54.0 | -80.3 | -76.2 | -81.4 | -97.6 | -88.3 | −$105.8B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 80.3 | 79.5 | 79.8 | 79.7 | 80.6 | 79.1 | 72.8 | 71.4 | 70.5 | 65.8 | 64.0 | -14.5 pts | |
| Operating margin | 34.2 | 33.7 | 34.3 | 35.6 | 37.6 | 25.7 | 26.2 | 29.0 | 30.8 | 30.6 | 32.1 | -3.6 pts | |
| Net margin | 25.0 | 9.1 | 28.1 | 25.9 | 34.0 | 15.8 | 17.0 | 19.8 | 21.7 | 25.4 | 26.4 | +0.4 pts | |
| FCF margin | 32.0 | 34.7 | 32.6 | 29.6 | 34.0 | 11.8 | 17.0 | 22.3 | -0.7 | -35.2 | -40.0 | -67.2 pts | |
| ROIC | 25.3 | 29.9 | 30.2 | 30.6 | 31.7 | 20.5 | 14.4 | 16.2 | 15.5 | 13.2 | 13.3 | -12.1 pts | |
| Return on equity | 17.5 | 7.7 | 50.9 | 83.9 | 262.4 | – | – | 120.3 | 60.8 | 40.2 | 28.3 | +22.6 pts | |
| R&D % of revenue | 16.3 | 15.4 | 15.3 | 15.5 | 16.1 | 17.0 | 17.3 | 16.8 | 17.2 | 15.3 | 14.2 | -1.0 pts | |
| Stock pay % of revenue | 3.6 | 4.1 | 4.2 | 4.1 | 4.5 | 6.2 | 7.1 | 7.5 | 8.1 | 7.1 | 6.7 | +3.6 pts | |
| Capex % of revenue | 5.3 | 4.4 | 4.2 | 4.0 | 5.3 | 10.6 | 17.4 | 13.0 | 37.0 | 82.6 | 105.4 | +77.3 pts | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Cloud applications23.6%1 claim
- Cloud infrastructure26.9%2 claims
- Software license and support36.4%1 claim
- Hardware4.6%No moat
- Services8.5%No moat
Moat claims
- Applies to
- Cloud applications
- Confidence
- Durability
- durable
- Trajectory
- stableas of Aug 31, 2026
Oracle combines finance, HR, supply-chain and other applications around common data and security. Replacing a working suite requires customers to rebuild integrations and business processes. Q1 FY2027 cloud applications revenue was $4.219 billion, up 10%; this supports adoption but does not disclose retention or additional modules per customer.
Q1 FY2027 cloud applications revenue rose 10% to $4.219 billion; adoption persists, but Oracle does not publish suite retention or module-attach rates.
- Cloud applications revenue$4.2B+10%
- Best-of-breed point solutions displacing individual modules
- Standardized APIs/integration tooling reducing suite-level advantage
- Aggressive bundling from competing suites (Microsoft, SAP)
- AI tools and standard integration interfaces can let customers use other vendors without replacing the core suite.
- Healthcare implementation failures and government oversight can damage trust and consume support resources even when a contract ceiling expands.
- SourceOracle Fusion Claw launchSep 29, 2026
- FilingOracle FY2026 Form 10-KJun 22, 2026
- FilingOracle Q1 FY2027 Form 10-QSep 11, 2026
- SourceHouse Veterans’ Affairs Committee: Oracle executive subpoenas servedSep 14, 2026
- Applies to
- Cloud infrastructure
- Confidence
- Durability
- durable
- Trajectory
- wideningas of Aug 31, 2026
Oracle operates the computing, networking and database capacity behind OCI. Q1 FY2027 infrastructure revenue reached $7.388 billion and management reported 850 MW of newly delivered data-center capacity. The technical footprint and deployment experience are difficult to build quickly, but high spending alone does not prove lower unit costs or durable excess returns.
OCI revenue rose 121% to $7.388 billion and Oracle delivered 850 MW of capacity in Q1 FY2027, expanding its operating footprint while project and funding risks remain.
- Cloud infrastructure revenue$7.4B+121%
- Datacenter capacity delivered (MW)850
- GPUs delivered≥300,000
- Leases not yet commenced~$288.0B+189%
- Unconditional purchase obligations$34.2B
- Hyperscaler price cuts compressing margins
- Execution risk in data-center buildouts (power, supply chain, permitting, customer concentration)
- High debt, lease commitments, and capital intensity if AI infrastructure demand slows
- Customer preference for consolidating cloud spend to top hyperscalers
- Power supply and permit disputes can delay revenue while rent, interest and equipment commitments continue.
- GPU efficiency and useful-life assumptions may leave capacity underused before it earns its cost.
- Restarted transmission reviews can delay energization even when data-center construction continues.
- FilingOracle FY2026 Form 10-KJun 22, 2026
- FilingOracle Q1 FY2027 Form 10-QSep 11, 2026
- SourceOracle Q1 FY2027 results: capacity deliverySep 10, 2026
- SourceWisconsin PSC final order: Ozaukee transmission reviewSep 10, 2026
- Applies to
- Cloud infrastructure
- Confidence
- Durability
- medium
- Trajectory
- wideningas of Aug 31, 2026
Large cloud commitments provide a forward workload book and can keep scarce capacity reserved for years. Group RPO was $664 billion in August 2026, compared with $638 billion in May; the increase is tied to AI infrastructure contracts. Customer prepayments help fund delivery. This is a group total, not an application-only backlog, and customers still depend on Oracle delivering usable capacity. Only about 13% of August backlog is expected to become revenue within twelve months, so most contracted value depends on later capacity delivery.
RPO rose from $638 billion in May to $664 billion in August 2026 and customer financing prepayments were $11.363 billion in Q1, improving committed demand and funding visibility.
- Cloud infrastructure revenue$7.4B+121%
- Remaining performance obligations~$664.0B+46%
- Customer financing prepayments$11.4B
- RPO due within twelve months~13.0%+3.0 pts
- Concentration in a few large AI customers and their ability to fund commitments
- Delayed power, equipment or permits prevent contracted capacity delivery
- Prepayments fund construction but create future service and financing obligations
- FilingOracle Q1 FY2027 Form 10-QSep 11, 2026
- FilingOracle FY2026 Form 10-KJun 22, 2026
- Applies to
- Software license and support
- Confidence
- Durability
- durable
- Trajectory
- stableas of Aug 31, 2026
Mission-critical database and middleware systems require tested integrations, trained staff and dependable upgrades. Oracle says substantially all support customers renew, which supports installed-base switching costs. Q1 FY2027 software support revenue fell to $4.895 billion from $4.955 billion as workloads migrated to cloud; cloud migration can preserve Oracle relationships while reducing this segment.
Software support revenue was $4.895 billion in Q1 FY2027 versus $4.955 billion a year earlier; cloud migration reduces legacy revenue while the filing still reports broad renewal.
- Software support revenue$4.9B-1%
- Open-source and cloud-native databases reducing dependence on Oracle licensing
- Customer pushback on licensing practices accelerating migrations
- Workload shift to hyperscaler-managed databases
- FilingOracle FY2026 Form 10-KJun 22, 2026
- FilingOracle Q1 FY2027 Form 10-QSep 11, 2026
- SourceOracle: NTT DOCOMO BUSINESS database migrationSep 30, 2026
Profile change log
- Oct 9, 2026 · analyst revision
The primary software license-and-support market now includes the HP judgment as evidence that vendor control remains subject to contractual compatibility and support obligations.
- Oct 9, 2026 · business change
A federal court approved the separate $17.5 million cloud securities class-action settlement, including fees and costs. It ended this case, while the related derivative action remained separate.
- Oct 9, 2026 · business change
The U.S. Supreme Court denied Oracle’s petition in the HP Itanium case, ending the dispute after the company paid and recorded the judgment in Q2 FY2022.
- Oct 9, 2026 · analyst revision
The FY2022 legal adjustment now covers only the HP judgment in the quarter ended November 30, 2021. The separate $17.5 million cloud securities settlement has its own legal history; its expense-recognition period is not disclosed.
- Oct 9, 2026 · analyst revision
Corrected the chip-financing report date from October 8 to October 7, the first reported date in contemporaneous coverage. The talks remain unconfirmed. Added customer migration evidence and purchase commitments to the installed-base and cash-conversion analysis.
- Oct 9, 2026 · business change
Bloomberg reported Oracle used trucked natural gas near Salt Lake City and for early work at an OpenAI campus in Texas while pipeline access was delayed. Temporary fuel can support delivery but does not replace dependable long-term power infrastructure.
- Oct 9, 2026 · business change
NTT DOCOMO BUSINESS moved its internal Oracle database platform to Autonomous AI Database on OCI and reported 43% lower database license costs. Oracle retained twelve critical systems, while the customer gained a cheaper consumption model.
- Oct 9, 2026 · analyst revision
The current permit debate now reflects the September 17 court decision rather than the earlier stay. Recent software and storage announcements broaden the offering, while reported financing talks remain separate from completed debt.
- Oct 9, 2026 · business change
Reports describe Oracle talks with Apollo and Goldman Sachs to finance chips through an investor-owned vehicle. The deal is unconfirmed; leasing may defer cash payments while adding future obligations.
- Oct 9, 2026 · business change
Oracle and NetApp announced a native managed storage service planned within twelve months. Familiar storage tools may ease OCI migration, but delivery and revenue are not yet confirmed.
- Oct 9, 2026 · business change
Oracle launched Fusion Claw with 25 new applications that automate business workflows under customer controls. They extend its application suite; paid adoption and incremental revenue were not disclosed.
- Oct 9, 2026 · business change
New Mexico’s Supreme Court lifted temporary Project Jupiter air and water permit stays. Proceedings can resume, easing one delay while power and final approvals remain unresolved.
- Oct 9, 2026 · business change
Senate Veterans’ Affairs members requested Oracle’s VA contract documents by October 23, seeking explanations for the higher contract ceiling and delayed healthcare-system delivery.
- Oct 9, 2026 · business change
House Veterans’ Affairs subpoenas were served on Larry Ellison and Mike Sicilia over the VA health-record contract, increasing scrutiny of delivery, costs and patient safety.
- Oct 9, 2026 · business change
Larry Ellison cancelled his planned Oracle stock sales before any shares were sold under the plan; the founder’s existing ownership remains central to governance.
- Oct 9, 2026 · business change
Wisconsin’s utility regulator revoked the completeness finding for the Ozaukee transmission application, requiring a new application and increasing power-delivery uncertainty for the Port Washington campus.
- Oct 9, 2026 · analyst revision
The cloud share estimate now uses the reported Q1 2026 value of 4% instead of mixing current and prior-quarter shares into a range. Government healthcare oversight and transmission approval risks strengthen the delivery and trust debate.
- Oct 9, 2026 · analyst revision
The hardware and services no-moat decisions add their revenue to score coverage at zero. Coverage rises from 86.90% to 100%; the company score moves from 77.68 to 68.10 including exact weights and the infrastructure contract-claim reassignment.
- Oct 9, 2026 · business change
The Dutch Supreme Court sent the privacy class action back after finding the wrong admissibility standard had been used; liability and damages remain unresolved.
- Oct 9, 2026 · business change
An amended OCI securities complaint challenged Oracle’s infrastructure disclosures; the company disputes the claims and says it does not expect a material financial effect.
- Oct 9, 2026 · business change
Oracle committed to a planned Point Beach electricity subscription associated with about $300 million of rising energy costs; regulatory approval and power economics remain conditions.
- Oct 9, 2026 · business change
Oracle and King Faisal Specialist Hospital signed a non-binding healthcare memorandum, creating a potential data and cloud opportunity without a confirmed revenue contract.
- Oct 9, 2026 · business change
Oracle and STACK said flooding reached Project Jupiter without damaging critical infrastructure and kept their planned schedule; weather remains another delivery risk.
- Oct 9, 2026 · business change
A reported Project Jupiter force-majeure notice highlighted contract and power risks; Oracle said the project remained on its planned schedule.
- Oct 9, 2026 · business change
Oracle said a court stay covers Project Jupiter microgrid air permitting but does not stop separate data-center building construction; energization remains a key delivery risk.
- Oct 9, 2026 · business change
Oracle reported Q1 FY2027 OCI revenue of $7.388 billion and $664 billion contracted backlog; delivered capacity is turning AI commitments into revenue.
- Oct 9, 2026 · business change
Hilary Maxson became Oracle CFO, taking responsibility for financing and capital discipline during the AI infrastructure expansion.
- Oct 9, 2026 · business change
Oracle sold its Ampere interests to SoftBank for $4.3 billion cash and recorded a $2.7 billion gain, improving liquidity without adding cloud operating profit.
- Oct 9, 2026 · business change
Oracle appointed Clay Magouyrk and Mike Sicilia as co-CEOs; Safra Catz became executive vice chair, placing cloud and industry operators in joint leadership.
- Oct 9, 2026 · business change
The U.S. tax law caused a $958 million Oracle deferred-tax charge, reducing reported profit without changing cloud demand.
- Oct 9, 2026 · business change
Oracle completed its Cerner acquisition, adding healthcare software and customer workflows; FY2023 now includes acquired revenue and costs.
- Oct 9, 2026 · analyst revision
Moved the long-contract claim from cloud applications to infrastructure because current AI commitments drive group backlog; the KPI identifies the backlog as group-wide rather than SaaS-only.
- Oct 9, 2026 · analyst revision
Replaced rounded FY2026 segment weights with exact filed offering revenue; added quarterly moat trajectories, evidence-based hardware and services no-moat decisions, market links, management and a cash-conversion debate. Kept industry, sector and the stock-page test timestamps.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Enterprise software licenses and support
Global licenses, upgrades and technical support for enterprise databases, middleware and business applications deployed on premises or in customer-managed hybrid environments. Excludes vendor-operated cloud subscriptions, equipment and consulting projects.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| ORCL | 68 | 64.0% | 32.1% | |
| Industry median | 7 | 84 | 67.9% | 32.1% |
| Sector median | 77 | 75 | 64.9% | 23.6% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Mission-critical databases and applications require tested upgrades, security updates and staff expertise, supporting installed-base renewals.
- Cloud migration can retain a vendor relationship through hybrid deployments, even as license and support revenue move into subscription revenue.
- Data sovereignty, security and application latency can preserve customer-managed or on-premise deployments.
- Economic weakness and higher financing costs have a stronger effect on new licenses and migration projects than on essential support renewals.
- Currencies change translated global revenue and customer purchasing power; multinational vendors have partial cost offsets from local staff.
- Open-source databases, cloud-native replacements and third-party support can reduce dependence on incumbent license and maintenance offerings.
- Contract audits, complex license terms and price increases can provoke customer migration or support disputes.
- Interoperability and data-portability rules can reduce barriers to changing providers.
- Legacy support can decline before cloud revenue fully replaces it, while AI-enabled new entrants compete for new workloads.
- Cyber failures or unsuccessful upgrades can damage trust in systems that customers depend on every day.
Bulls & bears
Can Oracle deliver its contracted AI capacity and earn cash after equipment, power, lease and financing costs without weakening its installed software base?
Arguments
What to watch
- 1OCI revenue and RPO conversion
- 2Capital expenditure, binding purchase commitments, customer financing advances and earned cash generation
- 3Software support and cloud applications revenue
Next check: October 23, 2026 Senate document deadline and Wisconsin power approvals, then Q2 FY2027 results for the quarter ending November 30; the results date is not confirmed.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 8, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 68/100 by <a href="https://www.findmymoat.com/stocks/XNYS:ORCL">Find My Moat</a> (as of September 2026)Request update
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