Download PDF

1. Company Snapshot

1.a. Company Description

Oracle Corporation offers products and services that address enterprise information technology environments worldwide.Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services.


In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database, an enterprise database; Java, a software development language; and middleware, including development tools and others.The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, MySQL HeatWave, Internet-of-Things, digital assistant, and blockchain.Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services; and consulting and customer services.


The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels.Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.

Show Full description

1.b. Last Insights on ORCL

Oracle's recent performance has been impacted by several negative factors. Despite strong Q3 earnings, which beat revenue and EPS estimates, the company's high debt load of over $124 billion and revenue concentration in a single customer have raised concerns. Additionally, Oracle's cloud infrastructure investments have led to negative free cash flow. Analysts have also expressed concerns, with Morgan Stanley lowering their price target on the stock from $213.00 to $207.00, citing an equal weight rating. Wedbush initiated Oracle with an outperform rating, but the stock slid, and the company's 11% decline in stock price throughout 2026 has been a concern (Wedbush, 2026).

1.c. Company Highlights

2. Oracle's Q3 Surge: AI-Driven Growth and Strategic Financing

Oracle Corporation’s third‑quarter fiscal 2026 results marked a historic milestone, with organic total revenue and non‑GAAP EPS each up 20% or more in USD—its first sustained double‑digit growth in over fifteen years. The company’s cloud applications revenue climbed 11% in constant currency, hitting a $16.1 billion annualized run rate, while multicloud database and AI infrastructure revenues exploded 531% and 243% year‑over‑year, respectively. Gross margins for AI‑centric capacity remained solid at 32%, above guidance, and the $553 billion RPO underscores a robust demand pipeline. Oracle’s stock trades at a P/E of 24.28 and a P/S of 6.19, reflecting the market’s premium on its AI and multicloud trajectory.

Publication Date: Apr -10

📋 Highlights

Revenue Momentum

Organic total revenue surpassed $12.6 billion, a 20% jump, driven by a 14% rise in Fusion ERP, 15% in Fusion SCM and HCM, and a 6% lift in Fusion CX. The multicloud database segment’s 531% YoY growth, coupled with AI infrastructure’s 243% surge, showcases Oracle’s successful pivot to high‑margin AI workloads and its ability to capture enterprise cloud spend.

Margin Strength

Operating margins held steady at 33%, buoyed by AI data center profitability in the 30‑40% gross margin range. The company’s disciplined cost structure and the high efficiency of OCI, which runs more cheaply than competitors, have reinforced margin resilience even as it scales AI deployments.

Earnings Beat

Non‑GAAP EPS of $1.79 eclipsed analyst expectations of $1.70, aided by a $30 billion debt and equity financing that has bolstered liquidity. Oracle’s CFO noted in the call that the 20% organic revenue growth “signals a new era” of profitability and operational excellence.

AI Infrastructure Expansion

Oracle delivered 400 MW of AI capacity in Q3, with 90% on‑time, and secured over 10 GW of power and data capacity—90% partner‑funded. The halo effect of AI is permeating traditional cloud workloads, including sovereign and Alloy deployments, further expanding the RPO base and creating cross‑sell opportunities.

Capital Structure & Financing

The $30 billion financing, with a $50 billion envelope, has left Oracle in a strong balance sheet position, maintaining an investment‑grade rating and a Net Debt/EBITDA of 4.22. The company’s equity stake in TikTok US’s new entity is neutral on revenue but may yield non‑operating income in Q4.

Customer Wins & RPO

Over 2,000 customers went live, including Memorial Hermann Health System and the University of New South Wales. The surge in large‑scale AI contracts has amplified the RPO, positioning Oracle to monetize its sovereign and multicloud offerings while deepening customer lock‑in.

Strategic Outlook

Oracle’s focus remains on AI agent development, AI database integration, and sovereign cloud expansion. With a robust RPO pipeline, disciplined CapEx, and a clear AI roadmap, the company is poised to sustain double‑digit growth and reinforce its competitive moat in the enterprise cloud arena.

3. NewsRoom

Card image cap

Market Charts to Watch Now- RGTI, ORCL & S&P 500

May -06

Source: youtube.com

Card image cap

Oracle's $553 Billion Backlog Is Larger Than the GDP of Most Countries. It Also Grew 325% in a Year

May -06

Source: 247wallst.com

Card image cap

Oracle Stock's Breakout Is Real and the Long-Term AI Infrastructure Case Is Only Getting Stronger

May -06

Source: 247wallst.com

Card image cap

Oracle Stock Is Still Down Year to Date, As Many AI Stocks Soar. Here's What's Going On.

May -05

Source: fool.com

Card image cap

Oracle Supports Africa Clinical Research Network (ACRN) to Advance a New Era of Clinical Research, Launches First Trial

May -05

Source: prnewswire.com

Card image cap

I'm Calling A Bottom For Oracle

May -04

Source: seekingalpha.com

Card image cap

Salesforce vs Oracle: There's Only One Winner In the Cloud AI Push

May -04

Source: 247wallst.com

Card image cap

What Oracle Investors Need to Know About OpenAI's Struggles

May -04

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.54%)

6. Segments

Cloud and License

Expected Growth: 6.4%

Oracle’s Cloud and License segment is driven by increasing demand for cloud-based services and licenses for its software products, growth in emerging markets, and expanding partner networks.

Services

Expected Growth: 8.5%

Oracle's Services segment growth is driven by increasing demand for digital transformation, cloud adoption, and the need for effective implementation and support of its software and hardware products.

Hardware

Expected Growth: 5.1%

Oracle Hardware’s growth is driven by increasing demand for cloud infrastructure, need for high-performance computing, and growing adoption of big data analytics, as well as Oracle’s strong brand recognition and continued innovation in servers, storage, and networking equipment.

7. Detailed Products

Oracle Autonomous Database

A cloud-based relational database that uses machine learning to automate administrative tasks, providing high performance, security, and scalability.

Oracle Cloud Infrastructure (OCI)

A comprehensive cloud platform that provides a range of services, including compute, storage, networking, and database, for building, deploying, and managing applications.

Oracle Enterprise Resource Planning (ERP) Cloud

A comprehensive ERP system that provides a range of modules, including financial management, human capital management, and supply chain management, to manage business operations.

Oracle Customer Experience (CX) Cloud

A suite of cloud-based applications that provide a range of customer experience management capabilities, including sales, marketing, and customer service.

Oracle NetSuite ERP

A cloud-based ERP system that provides a range of modules, including financial management, inventory management, and order management, to manage business operations.

Oracle Data Science

A cloud-based platform that provides a range of data science tools and services, including machine learning, data preparation, and model deployment.

Oracle Integration Cloud

A cloud-based integration platform that provides a range of integration tools and services, including API management, data integration, and process automation.

Oracle Security and Identity

A suite of security and identity management solutions that provide threat detection, identity governance, and access management capabilities.

8. Oracle Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Oracle's products and services have a high switching cost, making it difficult for customers to switch to substitutes.

Bargaining Power Of Customers

Oracle's customers have some bargaining power due to the availability of alternative products and services, but Oracle's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

Oracle has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The technology industry has high barriers to entry, and new entrants would need significant resources and expertise to compete with Oracle.

Intensity Of Rivalry

The technology industry is highly competitive, and Oracle faces intense rivalry from established players such as Microsoft, SAP, and IBM.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.31%
Debt Cost 4.16%
Equity Weight 1.69%
Equity Cost 9.05%
WACC 4.24%
Leverage 5814.97%

11. Quality Control: Oracle Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CrowdStrike

A-Score: 5.1/10

Value: 4.0

Growth: 8.8

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Oracle

A-Score: 4.8/10

Value: 2.7

Growth: 6.8

Quality: 6.0

Yield: 2.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Zscaler

A-Score: 4.7/10

Value: 2.3

Growth: 8.4

Quality: 3.5

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Fortinet

A-Score: 4.5/10

Value: 1.0

Growth: 9.1

Quality: 7.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Adobe

A-Score: 4.5/10

Value: 3.0

Growth: 5.4

Quality: 9.2

Yield: 0.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Synopsys

A-Score: 2.2/10

Value: 0.9

Growth: 0.8

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

193.99$

Current Price

193.99$

Potential

-0.00%

Expected Cash-Flows