ORCL
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XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $22.4B | $23.3B | $26.8B | $35.6B | $37.1B | $37.2B | $38.3B | $38.2B | $37.0B | $37.7B | $39.8B | $39.5B | $39.1B | $40.5B | $42.4B | $50.0B | $53.0B | $57.4B | +8.4% |
| Gross Profit | $22.4B | $23.3B | $25.9B | $33.6B | $33.4B | $33.6B | $35.3B | $23.7B | $22.4B | $23.0B | $24.3B | — | — | — | — | — | — | — | — |
| Gross Margin | 100.0% | 100.0% | 96.7% | 94.2% | 89.9% | 90.5% | 92.3% | 62.0% | 60.5% | 61.0% | 61.0% | — | — | — | — | — | — | — | — |
| Operating Income | $7.8B | $8.3B | $9.1B | $12.0B | $13.7B | $14.7B | $14.8B | $13.9B | $12.6B | $12.7B | $13.7B | $13.5B | $13.9B | $15.2B | $10.9B | $13.1B | $15.4B | $17.7B | +15.1% |
| Operating Margin | 35.0% | 35.8% | 33.8% | 33.8% | 36.9% | 39.5% | 38.6% | 36.3% | 34.0% | 33.7% | 34.3% | 34.3% | 35.6% | 37.6% | 25.7% | 26.2% | 29.0% | 30.8% | +1.8pp |
| Net Income | $5.6B | $5.7B | $6.2B | $8.5B | $10.0B | $10.9B | $11.0B | $9.9B | $8.9B | $9.3B | $3.8B | $11.1B | $10.1B | $13.7B | $6.7B | $8.5B | $10.5B | $12.4B | +18.9% |
| Net Margin | 24.9% | 24.4% | 23.2% | 24.0% | 26.9% | 29.4% | 28.6% | 26.0% | 24.0% | 24.7% | 9.6% | 28.1% | 25.9% | 34.0% | 15.8% | 17.0% | 19.8% | 21.7% | +1.9pp |
| Free Cash Flow | — | — | $8.5B | $10.8B | $13.1B | $13.6B | — | — | $12.5B | $12.1B | $13.7B | $12.9B | $11.6B | $13.8B | $5.0B | $8.5B | $11.8B | -$394.0M | -103.3% |
| FCF Margin | — | — | 31.5% | 30.2% | 35.3% | 36.5% | — | — | 33.7% | 32.1% | 34.3% | 32.6% | 29.6% | 34.0% | 11.8% | 17.0% | 22.3% | -0.7% | -23.0pp |
| EPS (Diluted) | $1.06 | $1.09 | $1.21 | $1.67 | $1.96 | $2.26 | $2.38 | $2.21 | $2.07 | $2.21 | $0.90 | $2.97 | $3.08 | $4.55 | $2.41 | $3.07 | $3.71 | $4.34 | +17.0% |
1. THE BIG PICTURE
Oracle is no longer a stagnant legacy software vendor; it has transformed into a primary beneficiary of the AI infrastructure cycle. The 84% surge in Cloud Infrastructure (IaaS) revenue and a 325% year-over-year jump in Remaining Performance Obligations (RPO) to $553 billion suggest that its strategy of integrating applications and infrastructure is finally capturing the large-scale cloud migration of its massive installed base (8-K).
2. WHERE THE RISKS HIT HARDEST
Oracle’s "deep understanding" of how applications and infrastructure interact is a core competitive strength (10-K Item 1), but this is threatened by its reliance on third-party data center providers. If these partners experience service interruptions or increase costs, Oracle’s ability to deliver its "differentiated" security and performance suffers, potentially eroding the margins it gains from automation.
Furthermore, the "material migration" of customers to the Oracle Cloud (10-K Item 1) requires massive, upfront capital investment. With $92.6 billion in outstanding debt and a -21.8% free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin (XBRL), Oracle is funding this transition through a strained balance sheet rather than current cash generation. This creates a scenario where any delay in customer cloud adoption directly threatens Oracle Corporation’s ability to manage its refinancing risks.
3. WHAT THE NUMBERS SAY TOGETHER
The headline growth is impressive, but the underlying cash dynamics are jarring. While Oracle leads its peer group in operating margin (29.7%) and net margin (25.6%), it ranks last in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin at -21.8% (Peer Benchmarking). This disconnect reveals that while the business is profitable on an accounting basis, the physical build-out of the Oracle Cloud is consuming cash faster than the business can produce it.
The 84% IaaS growth in the most recent quarter is a significant structural acceleration compared to the total revenue growth of 8.4% over the last twelve months. This divergence is driven by the "exceptional" demand for AI training and inferencing, which management notes is currently growing faster than supply (8-K). However, the nominal buyback yield of 0.1%—the lowest among peers with buyback programs—confirms that nearly all available capital is being diverted to infrastructure rather than shareholder returns.
4. IS IT WORTH IT AT THIS PRICE?
At 19.1x forward earnings, Oracle trades in line with the peer median of 18.6x. According to CAPM analysis, the market is pricing in roughly 8.3% long-term growth. This appears conservative if the $553 billion RPO converts to revenue as planned, but the valuation is sensitive to any slowdown. If growth were to decelerate to 5.0%, the justified multiple would fall to 11.7x, representing significant downside (CAPM analysis).
The current price is a bet on Oracle’s superior margins—which are the highest in its peer group—offsetting its negative FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders. While peers like Salesforce (27.3%) and Palantir (46.2%) generate significant cash, Oracle is the only peer currently operating with a deeply negative FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin while maintaining a premium net margin. This suggests the market is giving Oracle credit for its "integrated ecosystem" but ignoring the weight of its $112 billion net debt.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if the FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin remains deeply negative for consecutive quarters, suggesting that the capital intensity of AI infrastructure is permanently outstripping the cash-generation potential of the software business.
- Constructive if the 13% Cloud Application (SaaS) growth rate accelerates, proving that the massive infrastructure wins are successfully "pulling through" higher-margin software subscriptions.
6. BOTTOM LINE
Structural Advantage: A vertically integrated technology stack that combines proprietary database automation with AI-optimized infrastructure to create high customer switching costs.
Bottom Line: Oracle is a high-performance cloud story built on a foundation of significant debt; the stock is a bet that its record-breaking $553 billion backlog will convert to cash before its leverage becomes unsustainable.
1. Top 5 Material Risks
- Cloud Strategy Execution: Oracle Corporation’s revenues and profitability may decline if it fails to compete effectively in the cloud market, accurately anticipate customer needs, or manage the transition of customers from license and hardware offerings to subscription-based cloud services.
- Infrastructure and Capacity Planning: Oracle Corporation faces profitability risks from its long-term lease commitments and infrastructure investments; underestimating demand may lead to lost business, while overestimating demand results in costly, multi-year commitments for excess capacity.
- Intense Competition: Oracle Corporation competes with some of the world’s largest technology companies; failure to match competitor pricing, functionality, or innovation—particularly in AI—could force price reductions that erode margins.
- Cybersecurity and Data Privacy: As a processor of sensitive data, Oracle Corporation is a target for sophisticated cyberattacks; a breach could result in significant investigation costs, regulatory fines (such as GDPR penalties of up to 4% of worldwide revenue), and loss of customer trust.
- Supply Chain and Component Sourcing: Oracle Corporation relies on single-source vendors for critical hardware components; disruptions due to geopolitical tensions or trade barriers can increase production costs and delay revenue recognition.
2. Company-Specific Risks
- Investment Volatility: Oracle Corporation holds a 29% ownership interest in Ampere Computing Holdings LLC; changes in the fair value of this investment and the potential closure of the Ampere Acquisition create volatility in net income that is not reflective of core business performance.
- Multicloud Strategy Risks: While OCI’s multicloud services aim to optimize customer performance, this strategy may inadvertently encourage customers to migrate away from Oracle Corporation’s proprietary offerings toward competitors like Microsoft Azure, Amazon Web Services, or Google Cloud.
- Healthcare Regulatory Exposure: As a participant in the healthcare industry, Oracle Corporation must ensure its products comply with evolving interoperability and data privacy standards; failure to meet these requirements could limit its ability to distribute healthcare-related services.
- Workforce Restructuring: Periodic reorganizations intended to manage expenses can lead to temporarily reduced productivity, loss of institutional knowledge, and increased restructuring costs that may not yield expected savings.
3. Regulatory/Legal Risks
- Global Tax Changes: The OECD-led implementation of a 15% minimum tax in over 50 countries, alongside potential changes to U.S. federal tax law, could materially increase the effective tax rate on Oracle Corporation’s international profits.
- AI Regulation: The lack of comprehensive federal AI legislation and the emergence of a "patchwork" of global frameworks create compliance uncertainties that may require Oracle Corporation to limit or adjust its AI product offerings.
- Government Contractual Risks: Contracts with the U.S. Department of Defense and other government entities are subject to specific cybersecurity requirements (e.g., FedRAMP, CMMC); failure to meet these controls can lead to debarment or loss of government business.
- TikTok Hosting Prohibition: A U.S. law prohibits providing internet hosting services to TikTok beginning in January 2025; if this prohibition is enforced, Oracle Corporation may be unable to redeploy that capacity, negatively impacting revenues and profits.
4. Financial Impact Map
Cloud Strategy Execution → Revenues and Profitability → Volatility in reported results due to differences in timing of revenue recognition between subscription-based cloud offerings and license/hardware arrangements.
Infrastructure and Capacity Planning → Profitability and Cash Flows → Third-party data center vendors require significant contract termination fees for early exit of multi-year commitments.
Intense Competition → Revenues and Margins → Pressure to lower prices or offer unfavorable terms to compete with larger vendors, potentially reducing operating results.
Cybersecurity and Data Privacy → Net Income → GDPR violations can result in monetary penalties of up to €20 million or 4% of worldwide revenue of the preceding financial year.
Outstanding Indebtedness → Interest Expense → $92.6 billion in debt maturing through 2065; refinancing at higher interest rates would increase interest expense and potentially limit the utilization of foreign tax credits.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Mar 2026 | — |
| 10-Q | Dec 2025 | Nov 2025 |
| 14A | Sep 2025 | — |
| 10-K | Jun 2025 | May 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Super Micro Q3 EPS beats estimates, revenue misses expectations amid ongoing volatility
- ▸Q3 earnings per share exceeded analyst expectations
- ▸Q3 revenue results fell short of market projections
- ▸Company facing scrutiny following recent smuggling allegations
- ▸Stock volatility remains elevated post-earnings release
Oracle Considers $45B-$50B Capital Raise Amid Negative Free Cash Flow
- ▸Contemplating $45B–$50B capital raise via equity-linked instruments and leveraged bonds
- ▸Remaining performance obligations (RPO) $523B, +438% YoY
- ▸Cloud infrastructure revenue $4.1B, +68% YoY
- ▸FY2025 infrastructure spending $21.2B, resulting in negative $394M free cash flow
- ▸OpenAI contract reportedly valued at $300B; Meta Platforms committed $20B
Oracle Q3 revenue $17.19B +21.7% YoY, OCI cloud revenue surges 84%
- ▸Total revenue $17.19B, up 21.7% YoY
- ▸Cloud revenue $8.9B, up 44% YoY
- ▸OCI infrastructure revenue $4.9B, up 84% YoY
- ▸Remaining performance obligations (RPO) $553B, up 325% YoY
- ▸Management projects FY2026 revenue ~$67B and FY2027 revenue ~$90B
Oracle to cut thousands of jobs amid $2.1B fiscal 2026 restructuring plan
- ▸491 remote and Seattle-based employees laid off effective June 1
- ▸Fiscal 2026 restructuring costs projected to reach $2.1B
- ▸Layoffs driven by strategic shift toward AI infrastructure investment
- ▸Global workforce totaled approximately 162,000 as of May 2025
- ▸Seattle office locations to remain operational despite workforce reductions
Oracle to cut thousands of jobs as part of $2.1B restructuring plan
- ▸Thousands of employees impacted by workforce reduction
- ▸Restructuring costs projected up to $2.1B for fiscal 2026
- ▸Majority of restructuring costs allocated to severance and related expenses
- ▸Workforce reduction supports shift toward AI data center infrastructure
- ▸Company employed approximately 162,000 full-time staff as of May 2025
Oracle pivots to AI with $50B FY26 capex plan and global workforce restructuring
- ▸FY26 capital expenditure guidance set at $50 billion
- ▸Restructuring costs increased to $2.1 billion
- ▸Global layoffs initiated to fund AI infrastructure expansion
- ▸Strategic focus on data centers and large-scale compute capacity
- ▸Expanded partnership with OpenAI driving infrastructure spending
Oracle cuts 30,000 jobs to fund $50B AI infrastructure capital expenditure plan
- ▸30,000 employees laid off to conserve cash for AI infrastructure
- ▸FY capital expenditure guidance set at $50 billion
- ▸Projected revenue $67 billion for fiscal year
- ▸Potential $30 billion free cash flow deficit based on current operating cash flow
- ▸Oracle shares rose 5.4% following layoff announcement
Oracle to cut thousands of jobs as AI data center capital expenditures surge $15B
- ▸Planning thousands of job cuts across multiple divisions starting March 2026
- ▸Fiscal 2026 capital expenditure forecast increased by $15B over previous $35B estimate
- ▸Intends to raise $45B to $50B to fund cloud infrastructure expansion
- ▸Reported $10B cash burn during the first half of fiscal year
- ▸Hiring freeze and role reductions implemented within cloud division
Oracle initiates thousands of job cuts to prioritize artificial intelligence infrastructure spending
- ▸Oracle laying off thousands of employees to shift focus toward AI infrastructure
- ▸Fiscal 2026 restructuring costs projected up to $2.1 billion
- ▸Company employed approximately 162,000 full-time staff as of May 2025
- ▸Shares rose over 5% following reports of workforce reduction
- ▸Layoffs part of broader industry trend reallocating resources toward AI development
Oracle Q4 revenue misses estimates, EPS beat driven by Ampere divestiture gains
- ▸Q4 revenue missed analyst expectations
- ▸EPS beat estimates driven by Ampere divestiture gains
- ▸Oracle Cloud Infrastructure (OCI) showing rapid growth
- ▸Management reaffirmed long-term growth outlook and AI infrastructure investment
- ▸Shares declined 6.85% over the one-month period