Oracle Corporation (ORCL)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of paying up for a good business when the balance sheet and cash flow do not support the price. Oracle has a durable franchise: its enterprise software and cloud ERP products create switching costs, and the latest filed quarter, fiscal Q1 2027 ended 2026-08-31, showed revenue of $19.3B and net income of $4.8B, up from $14.9B and $2.9B in fiscal Q1 2026. For fiscal 2026, revenue was $67.4B, net income $17.1B, and diluted EPS $5.83, up from $57.4B, $12.4B, and $4.34 in fiscal 2025. That is real growth. But the quality is uneven. ROE of 41.19% is flattered by a debt-to-equity ratio of 2.52; ROCE is only 6.36%. Trailing free cash flow is negative $28.7B, a -7.4% FCF yield, and the Altman Z-score of 1.20 signals financial stress. The Piotroski F-score is 5/9. At $128.23 on 2026-10-16, the P/E is 20.10 and P/B is 6.27. The Graham Number is $56.30, leaving a -138.85% margin of safety. FairStock's Lynch category is SLOW GROWER, citing 4.4% annual profit growth and 10.7% revenue growth over five years. The PEG of 0.34 and EV/EBITDA of 13.95 suggest the market expects the recent acceleration to last. I would need a much wider margin of safety before calling this a bargain.

In plain English: Oracle sells business software and cloud services that help large companies run finance, supply chain, and human resources. Sales and profits are rising, but the company is spending heavily and carries a lot of debt. At $128.23, the share price looks high compared with its accounting value and cash generation.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer