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Equity Brief · Technology2026-09-14
ORCL·Technology

Last results 10 Sept 2026Next reporting 10 Dec 2026

Oracle Corporation

I · AI Analysis

The brief

Oracle sells cloud software applications (enterprise resource planning, human capital management, supply chain tools, and NetSuite), databases (Oracle Database, MySQL), and development tools (Java, middleware) that help companies run their operations [Yahoo Finance]. The company also provides cloud infrastructure (compute, storage, networking), AI and machine learning capabilities, and hardware systems including servers and storage [Yahoo Finance].

Oracle Corporation is a major enterprise software and cloud computing company that builds and supports IT systems for businesses worldwide [Yahoo Finance]. The company reported trailing-twelve-month revenue of $71.8B through 31 August 2026, up 29.6% in the latest quarter versus the same quarter a year earlier, driven by its cloud business [Yahoo Finance]. However, recent news coverage highlights significant concerns: the company is conducting layoffs due to heavy AI spending and debt obligations [Investing.com Deutsch], the founder canceled a planned $7.5B stock sale after his wealth dropped sharply [Barron's], and the stock has fallen 50% over the past year despite revenue growth [Motley Fool].

Strong revenue growth but deeply negative free cash flow and elevated debt raise concerns about financial sustainability during heavy AI investment.

The brief AI analysisConfidence 7/10

Sentinellis health

Moderate concerns

5.8/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

16% of score6.7/10
Net margin+26.4%Gross margin+64.0%· need ≥ 68.1%, the lower third of Software - Infrastructure in our library

Returns on capital

16% of score10.0/10
ROIC+11.2%Return on equity+44.1%

Growth & momentum

11% of score10.0/10
Revenue growth+29.6%Operating margin trend—· no data

Balance sheet

32% of score1.7/10
Current ratio1.2x· need > 1.2xNet debt / EBITDA4.2x· need < 2.5xInterest coverage4.9xDebt / equity2.52· need < 1.5

Cash generation

16% of score3.3/10
Free cash flow$-23.7B· need positiveCash vs reported profit$32.0B vs $18.7B

Value creation

11% of score10.0/10
ROIC vs cost of capital+0.4pp

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$413.8B

Revenue (TTM)

$71.8B

Explainers

How we read these numbers

Plain-English guides · no account needed

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II · Recent news

What moved

6 stories · ranked by relevance

  • Company2026-09-11

    Larry Ellison Steps Back From Oracle Limelight in AI Era - Bloomberg.com

    Bloomberg

  • Company2026-09-13

    Down 50% Over the Past Year, Is It Time to Back Up the Truck and Buy Oracle Stock as Revenue Surges? - The Motley Fool

    Motley Fool

  • Company2026-09-11

    Why Oracle's 'Solid' Results Aren't Giving Its Stock A Big Boost - Investor's Business Daily

    Investor's Business Daily

  • Company2026-09-14

    Bericht: Oracle startet neue Entlassungsrunde wegen hoher KI-Investitionen und Schulden - Investing.com Deutsch

    Investing.com Deutsch

  • Company2026-09-14

    Oracle Stock Drops on Surprising Larry Ellison Announcement - Barron's

    Barron's

  • Company2026-09-13

    Oracle (ORCL) Bringt Generative KI Für Stromausfall Prognosen In Versorgernetze - simplywall.st

    Simply Wall St

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Free cash flow is deeply negative at -$23.7B (yield of -5.7%), meaning Oracle is consuming cash rather than generating it, which limits flexibility and increases reliance on external financing [Sentinellis calculation].

1 of 5 risks in this report

Risks

5

Opportunities

6

Red flags

4

Leadership

10

14 more findings in the full report — free with any account.

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Produced 14 Sept 2026, 15:15 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated