Debt exceeds twice its equity, so financial risk warrants a closer look.
Metrics · D/E ~394% · Current Ratio 1.12
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 25.5 · P/B 11.4
💡The #1 database vendor pivoting to cloud/AI infra; growth accelerating at a 33% margin and 54% ROE. Key risk: debt/equity up to 394% from buybacks and M&A.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: TradingView (margins, debt, liquidity, P/B are TTM), as of 2026-06-28
Business Summary · Key Value Metrics
Decades-long #1 in enterprise databases, now pivoting toward cloud and AI infrastructure via OCI (Oracle Cloud Infrastructure) and GPU clusters for AI workloads. TTM revenue $67.4B, 33.3% operating margin, 54.3% ROE.
Oracle has been the multi-decade leader in mission-critical enterprise databases, creating a lock-in where switching costs for core systems in finance, government, and healthcare are extremely high. It is now expanding into cloud and AI infrastructure through OCI (Oracle Cloud Infrastructure) and GPU clusters for AI workloads, with multi-cloud partnerships across Azure, AWS, and Google. TTM gross margin 63.3% and operating margin 33.3% (source: company IR, SEC 10-K).
Database Lock-in
#1 in enterprise databases, with extremely high switching costs for mission-critical systems.
OCI / AI Infrastructure
Expanding into a cloud specialized for AI workloads, built on GPU clusters.
Multi-cloud
Partnerships with Azure, AWS, and Google broaden accessibility.
High-Margin Software
Software leverage drives an operating margin in the 33% range.
10-Year Financial Trends
On an SEC 10-K basis, revenue grew from $37.0B in FY2016 to $67.4B in FY2026 (fiscal year ends in May), with growth accelerating from FY2023 on cloud and OCI demand (latest TTM revenue +17.4%). GAAP operating income reached $20.6B in FY2026 (30.6% operating margin), and diluted EPS rose from $2.07 to $5.83. FY2018 EPS dipped temporarily on a one-time charge from U.S. tax reform (TCJA) (source: SEC EDGAR 10-K, stockanalysis).
9-Year CAGR: Revenue +6.7% · Operating Income +5.5% · Net Income +6.9% · EPS +11.4%
Source: SEC EDGAR 10-K (XBRL), stockanalysis. Fiscal year (May year-end) GAAP; EPS is diluted. FY2018 EPS dropped on a one-time charge from U.S. tax reform (TCJA). From FY2022, an operating-expense reclassification created a step in operating margin from about 37% to the 26% range (an accounting reclassification, not an error). P/E = fiscal year-end price ÷ diluted EPS, last 6 years. A 10-year ROE chart is omitted — Oracle's large buybacks drove equity negative in FY2022 and made it too volatile for a multi-year ROE trend to be meaningful. For current ROE (about 54%, TTM), see the metrics above and the summary box.
Mega-Cap Value Metric Comparison
Among its peers, Oracle's P/E (TTM) of 25.5 is far below NOW (58.5) and in line with MSFT (22.2) and SAP (20.9). Its 33.3% operating margin trails MSFT (46.8%) but tops SAP, CRM, and NOW, and its revenue growth (+17.4%) ranks near the top alongside MSFT (+17.9%) and NOW (+21.7%). Its 54.3% ROE is the highest in the group, though thin equity from buybacks flatters it (all TTM · source: TradingView, company filings).
Metric
★ ORCL
MSFT
SAP
CRM
NOW
P/E (TTM)
25.5
22.2
20.9
18.3
58.5
Operating Margin
33.3%
46.8%
28.6%
21.9%
14.8%
ROE
54.3%
34.0%
17.2%
16.9%
16.1%
Revenue YoY Growth
+17.4%
+17.9%
+14.8%
+11.0%
+21.7%
P/E, ROE, operating margin = TTM; revenue growth = TTM YoY · Source: TradingView, company filings, as of 2026-06-28.
Key Risk Factors (from 10-K)
●
High Debt / Leverage— Total debt of about $167B and debt/equity near 394%, the highest among peers. Buybacks and acquisitions have thinned equity, widening the ratio. Sensitive to interest-rate and cash-flow conditions.Source: Company 10-K
●
AI CapEx / Cash-Flow Strain— Heavy upfront CapEx on AI data centers is pressuring free cash flow. The key question is whether cash flow recovers once the CapEx cycle ends.Source: Company IR, earnings calls
●
Intensifying Cloud Competition— Growing competition from cloud-native databases and infrastructure at AWS, Azure, and Google. Legacy on-premise license revenue is trending down.Source: Company 10-K
●
Durability of Accelerating Growth— The growth acceleration depends on cloud and OCI backlog (RPO); any slowdown risks a valuation re-rating.Source: TradingView, company IR
✦ ValueCrab Dashboard PreviewORCL $148.53 -2.58% · as of 2026-06-28
Q. What are Oracle's (ORCL) key value-investing metrics?P/E (TTM) 25.5, operating margin 33.3%, net margin 25.4%, ROE 54.3%, TTM revenue +17.4%, and a 9-year revenue CAGR of +6.7% (source: TradingView, SEC 10-K, as of 2026-06-28).
Q. How does Oracle make money?Traditionally it earned money from enterprise database licenses and maintenance; more recently, subscription revenue from the cloud (OCI) and GPU infrastructure for AI is growing fast. It is in a transition, layering cloud growth on top of its database lock-in.
Q. What is the analyst price-target consensus for Oracle?The average price target from 44 analysts is $255.76. This is an external consensus, not our own estimate, and implies +72.2% versus the current $148.53. Source: TradingView, 2026-06.
Q. Is the high debt a risk?Debt/equity is very high at about 394%, well above peers. That said, buybacks have thinned equity (the denominator), which inflates the ratio, and operating cash flow is solid. The AI CapEx cycle and interest-rate environment warrant monitoring. We do not provide definitive buy or sell opinions.