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AGING Analysis Report
Jul 31, 2026
23 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Jul 31, 2026 · Filing on record since: Aug 19, 2026 · 19 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Oracle Corporation (ORCL) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Low · Gem Score -43 (−100…+100 Quality+Value blend) · Quality -13 · Value -68 · Sentiment 19 (timing only, not weighted) · Composite fair value $113.99 vs $127.56 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Oracle Corporation

ORCL NYSE
Technology · Software - Infrastructure
Austin, TX 78741, United States oracle.com Updated Jul 30, 10:52pm
Price
$127.56
Market Cap
$367.4B
Employees
141,000
Beta
1.71
Avg Volume
35,892,336
Last Dividend
$2.00
CEO
Ms. Safra Ada Catz

Oracle Corporation is a global technology company that delivers enterprise software and cloud infrastructure solutions to organizations of all sizes. The company focuses on database management systems, enterprise applications, and cloud services that support critical business operations in areas such as finance, human resources, supply chain, customer experience, and industry-specific workloads. Oracle’s portfolio spans cloud and license software, hardware, and consulting and support services, enabling customers to deploy solutions on-premises, in public or private clouds, or in hybrid environments. Its flagship database technologies and middleware are widely used for high-volume transaction processing, analytics, and data management across sectors including financial services, telecommunications, government, manufacturing, and retail. Oracle also provides enterprise resource planning, customer relationship management, and other business applications, as well as cloud infrastructure that is used for running modern applications and training and deploying large AI models. Founded in 1977 and headquartered in Austin, Texas, Oracle Corporation is a key player in the global enterprise software and cloud computing market.

Runs with full report Generated: Jul 31, 2026 12:22am
Price Overview
Price at report time
$127.56
as of Jul 31, 12:24am (23d ago)
Change · Jul 31
+9.82 (+8.34%)
Day Range
$121.59 – $128.34
52-Week Range
$114.50 – $345.72
50-Day MA
$165.95
200-Day MA
$184.01
Volume
36,882,152.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 23d).
Share Structure
Outstanding 2,880,000,000.00
Float 1,713,361,760.00
Free Float 59.5%
Normal free float — 59.5% of shares trade freely, ~40.5% held by insiders/institutions
Healthy float typical of established companies. Good liquidity for entering and exiting positions without major price impact.
Price History (1 Year)
Last updated: Jul 31, 2026 12:35am (23d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Jul 31, 2026 12:35am (23d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Jul 31, 2026 12:20am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
21.88
Stock Price: $127.56
EPS (Diluted): 5.83
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
8.63
Stock Price: $127.56
Total Equity: $43.06B
Shares: 2,914,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
12.07
Market Cap: $367.43B
Total Debt: $7.20B
Cash: $31.29B
EBITDA: $28.23B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$340.7B
Market Cap: $367.43B
Total Debt: $7.20B
Cash: $31.29B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $67.36B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
30.6%
Operating Income: $20.61B
Revenue: $67.36B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
25.4%
Net Income: $17.09B
Revenue: $67.36B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
39.7%
Net Income: $17.09B
Total Equity: $43.06B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
95.1%
Operating Income: $20.61B
Tax Rate: 12.5%
Equity: $43.06B
Total Debt: $7.20B
Cash: $31.29B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.12
Current Assets: $46.57B
Current Liabilities: $41.76B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.17
Short-Term Debt: $7.20B
Long-Term Debt: $0.00
Total Debt: $7.20B
Total Equity: $43.06B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$23.11
Revenue: $67.36B
Shares: 2,914,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$14.78
Total Equity: $43.06B
Shares: 2,914,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$-8.13
Operating CF: $31.98B
CapEx: -$55.66B
Shares: 2,914,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
1.6%
Last Dividend: $2.00
Stock Price: $127.56
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
33.9%
Dividends Paid: -$5.79B
Net Income: $17.09B
Industry Benchmarks
Last run: Jul 31, 2026 12:16am
Compares ORCL against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Jul 31, 2026 12:35am (23d ago)
Metric 2022 2023 2024 2025 2026
Revenue $42.4B $50.0B $53.0B $57.4B $67.4B
Cost of Revenue
Gross Profit
Operating Expenses
Operating Income $10.9B $13.1B $15.4B $17.7B $20.6B
Net Income $6.7B $8.5B $10.5B $12.4B $17.1B
EBITDA $12.9B $15.6B $18.5B $21.5B $28.2B
EPS $2.49 $3.15 $3.82 $4.46 $5.94
EPS (Diluted) $2.41 $3.07 $3.71 $4.34 $5.83
Balance Sheet (Annual)
Last updated: Jul 31, 2026 12:02am (23d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $21.4B $9.8B $10.5B $10.8B $31.3B
Total Current Assets $31.6B $21.0B $22.6B $24.6B $46.6B
Total Assets $109.3B $134.4B $141.0B $168.4B $261.8B
Current Liabilities $19.5B $23.1B $31.5B $32.6B $41.8B
Long-Term Debt $0
Total Liabilities $115.1B $132.8B $131.7B $147.4B $218.7B
Total Equity -$5.8B $1.6B $9.2B $21.0B $43.1B
Retained Earnings -$31.3B -$27.6B -$22.6B -$15.5B -$4.3B
Cash Flow (Annual)
Last updated: Jul 31, 2026 12:35am (23d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $9.5B $17.2B $18.7B $20.8B $32.0B
Capital Expenditure -$4.5B -$8.7B -$6.9B -$21.2B -$55.7B
Free Cash Flow $5.0B $8.5B $11.8B -$394.0M -$23.7B
Acquisitions (net) -$148.0M -$27.7B -$63.0M $0
Net Debt Issued / (Repaid)
Dividends Paid -$3.5B -$3.7B -$4.4B -$4.7B -$5.8B
Stock Buybacks -$16.2B -$1.3B -$1.2B -$600.0M -$95.0M
Net Change in Cash -$8.7B -$11.6B $689.0M $332.0M $20.5B
Growth Trends (YoY %)
Last updated: Jul 31, 2026 12:35am (23d ago)
Metric 2023 2024 2025 2026
Revenue Growth +17.7% +6.0% +8.4% +17.3%
Gross Profit Growth
Operating Income Growth +19.8% +17.3% +15.1% +16.6%
Net Income Growth +26.6% +23.1% +18.9% +37.3%
EBITDA Growth +21.1% +18.3% +16.6% +31.0%
Dividend History (Last 20)
Last updated: Jul 31, 2026 12:03am (23d ago)
Date Dividend Declaration Record Payment
2026-07-10 $0.50
2026-04-09 $0.50
2026-01-09 $0.50
2025-10-09 $0.50
2025-07-10 $0.50
2025-04-10 $0.50
2025-01-10 $0.40
2024-10-10 $0.40
2024-07-11 $0.40
2024-04-09 $0.40
2024-01-10 $0.40
2023-10-11 $0.40
2023-07-11 $0.40
2023-04-10 $0.40
2023-01-09 $0.32
2022-10-11 $0.32
2022-07-11 $0.32
2022-04-07 $0.32
2022-01-06 $0.32
2021-10-08 $0.32
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 15 computed · 6 not applicable · 3 not yet run
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for ORCL — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-07-31 00:34:49
Verdict Fairly valued at $127 within a $110-$135 range, but the thesis is binary on OCI capex payoff — wait for FCF inflection or two clean quarters of RPO conversion before adding; models are directionally right, analytically shallow.

The raw numbers tell a jarring story that the "mature_earner" and "steady-compounder" labels obscure. Revenue accelerated from $13.31B (Aug-24) to $19.18B (May-26) — that's 44% growth over seven quarters, with the most recent YoY at 17.4% and sequential Q4 growth of 11.6%. Annual revenue jumped from $57.40B to $67.36B (17.4%), and operating income from $17.68B to $20.61B. This is not a mature earner's trajectory; it's an inflection. But — and this is what every prior model underweights — free cash flow was **negative $23.69B** on capex of $55.66B against operating CF of $31.98B. Oracle is spending 174% of operating cash flow on capex to build OCI capacity for the Stargate/OpenAI-style commitments. The 21.9x P/E is being computed on GAAP earnings that don't yet reflect the depreciation cliff coming from that $55.66B capex base.

The synthesis "fair value $106.60, signal-adjusted $118.21" is anchored on trailing multiples and implicitly assumes the capex normalizes without a corresponding revenue payoff — but that's incoherent. Either the RPO/backlog from AI infrastructure deals materializes (in which case FY27-28 revenue is dramatically higher than any DCF assumes, and $127 is cheap) OR the capex is a value-destroying arms race against hyperscalers with better unit economics (in which case ROIC collapses from that suspicious 95% figure — which is a stale annual metric that doesn't capture the invested capital surge — and fair value is well below $100). The "-7.3% overvalued" verdict splits the difference and captures neither scenario. The market_forces model at least flags "deteriorating cash flow quality" and "unproven competitive positioning against hyperscalers" — that's the right worry. Debt at $7.20B looks benign now but Oracle will need to fund the capex gap; expect leverage to climb materially.

A careful contrarian would press three points. First, the Q3 FY26 net income of $6.14B at 38.2% margin is an outlier — likely tax or one-time item — and smoothing it out puts underlying quarterly margins closer to 21-22%, meaning the "27.8% earnings CAGR" is partly noise. Second, the insider activity on 2026-06-24 shows ~359K shares sold across seven transactions after a 400K option exercise — that's routine, but the timing (post-run-up, before the capex bill fully hits reported financials) deserves note; "Neutral" is generous. Third, the bull thesis rests on OCI + Autonomous Database sustaining 25-30%+ growth, but Oracle doesn't break out OCI cleanly, and the "37% revenue growth" the pre-flight cites doesn't appear in the actual data — YoY is 17.4%, not 37%. Someone conflated a segment number with total. That matters: at 17% consolidated growth and a 5.5x P/S, Oracle is priced for continued acceleration, not stabilization.

I dissent partially from the synthesis "fair value" verdict. The composite $106-118 range is too low if you believe the AI infrastructure backlog is real (management has cited RPO growth of ~350% to over $450B — not in this data file, but publicly disclosed), and too high if you don't. The stock is a binary bet on OCI monetization, and $127.56 is roughly the price where reasonable people disagree — which is exactly where a binary should trade. My read: the balance of evidence — accelerating revenue, sector leadership, database lock-in on AI training workloads — tilts slightly bullish, but the negative FCF, opaque segment reporting, and hyperscaler competition make this uninvestable at 5.5x sales without conviction on the backlog conversion rate. I'd want to see two more quarters of capex-to-revenue ratio improving, or evidence that OCI gross margins are hyperscaler-competitive (not just growing). Fair value on current visibility is $110-135, with wide error bars; current price sits in-range but closer to the top. Not a buy, not a short, and the models calling this "fair value" are directionally right but for weaker reasons than they claim — the risk isn't valuation, it's execution on $50B+ of annual capex.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-07-31 00:35:06
Verdict Fairly valued to slightly overvalued at $127.56 — the earnings growth is real, but until $55.66B of capex translates into positive free cash flow, fair value looks closer to $110-$120.

Oracle’s numbers show a company that is growing faster than its “legacy software” reputation, but the market is already paying for that upgrade. Revenue has gone from $42.44B in 2022 to $67.36B in 2026, a 59% increase in four years, while operating income nearly doubled from $10.93B to $20.61B and net income rose from $6.72B to $17.09B. That is not stagnation; it is a real acceleration in scale and profitability. The quarterly trend is also strong: the latest quarter at $19.18B grew 20.6% versus $15.90B a year earlier, and the prior quarter grew 21.7% versus $14.13B. Even backing out the unusually high 38.2% margin quarter in November 2025, Oracle is consistently posting net margins around 20%-22%, and the annual net margin of 25.4% is excellent for a company still investing heavily. On earnings optics alone, 21.9x trailing earnings for a business growing revenue 17%-20% and earnings 30%+ does not look extreme.

But the single most important fact in this dataset is that free cash flow was negative $23.69B in 2026 because capex exploded to $55.66B against operating cash flow of $31.98B. For Oracle, that is not a footnote; it is the valuation debate. A software company can report beautiful margins while destroying near-term owner earnings if infrastructure investment outruns returns. The balance sheet gives Oracle room to do this — $31.29B of cash against just $7.20B of debt is unusually conservative for a mega-cap software name — so this is not a solvency problem. It is a return-on-incremental-capital problem. At $367B market cap and 5.5x sales, investors are implicitly assuming that the capex surge is building a durable, monetizable cloud platform rather than merely funding a lower-return arms race. If OCI demand is as strong as bulls think, this spend can be rational. If not, the stock is being valued off accounting earnings while true cash earnings are temporarily absent. That makes me less forgiving than a simple P/E screen would suggest.

There is also a subtle quality issue in the recent earnings arc. Annual net income jumped from $12.44B to $17.09B, up 37%, faster than revenue growth of 17%. Some of that is operating leverage, which is encouraging. But quarterly profitability is not smooth: $6.14B of net income on $16.06B revenue in the November 2025 quarter implies a 38.2% margin, wildly above Oracle’s normal range. That suggests items below the operating line or one-time effects helped the annual earnings base. Even if the business is genuinely better, I would rather anchor on operating cash flow and operating income, where the story is “strong but not miraculous.” On those measures, Oracle deserves a premium to shrinking legacy vendors, but not an open-ended cloud multiple. Around 12.1x EV/EBITDA and 5.1x EV/revenue, the stock is not priced like AWS or a fast SaaS compounder, yet it also is not cheap enough to ignore the risk that capex intensity remains structurally high.

The best case against my caution is straightforward: Oracle may be in the middle of a rare large-cap reacceleration, and the market could still be underestimating it. Two years ago annual revenue was $52.96B; now it is $67.36B. Operating margin improved to 30.6%, ROE is 39.7%, and the company has net cash. If the $55.66B capex is front-loaded, then reported free cash flow is temporarily depressed while future revenue is not yet fully reflected. In that scenario, today’s 21.9x earnings could actually be cheap for a business that emerges with much higher infrastructure and database revenue and sustained high-teens top-line growth. A smart bull would also say Oracle’s installed base gives it a captive funnel that hyperscalers do not have in the same way. I weigh that argument less heavily because the evidence provided proves spend, not return. Massive capex can create a moat, but it can also cap future free-cash-flow conversion and keep the multiple from expanding.

What would change my mind is clear. If Oracle can hold revenue growth above 15% while bringing capex sharply down from $55.66B toward something that allows free cash flow to turn decisively positive again, then the current price starts to look attractive and I would move bullish quickly. Likewise, if operating cash flow keeps compounding from $31.98B without deterioration in margins, that would validate the investment cycle. The flip side is just as clear: if revenue growth falls back toward low teens while capex stays anywhere near current levels, the market will stop rewarding EPS and begin valuing the company on impaired cash conversion, and a stock at $127.56 would look rich. My base case is that Oracle is a good company priced slightly ahead of the evidence, with fair value closer to the high teens on earnings only if cash flow normalizes soon; absent that, I struggle to justify much above roughly $110-$120.

Grok Reading
Independent reading · grok-4.5 · generated 2026-07-31 00:35:44
Verdict Modestly undervalued at $127; growth acceleration and net-cash fortress justify holding through the capex trough toward $145–150

Oracle’s numbers describe a company mid-transformation that is finally putting real growth on the scoreboard after years of being dismissed as a legacy cash cow. Fiscal 2026 revenue hit $67.36B, up 17.4% from $57.40B, with the quarterly sequence accelerating hard: $14.93B → $16.06B → $17.19B → $19.18B. Net income climbed even faster, from $12.44B to $17.09B (+37%), and operating margin held at 30.6%. That is not the profile of a mature earner quietly harvesting maintenance contracts; it is the installed-base moat converting into cloud and infrastructure demand at scale. The balance sheet is fortress-like—$31.29B cash against only $7.20B debt, D/E of 0.17—and operating cash flow of $31.98B proves the core engine still throws off enormous cash. At $127.56 the stock trades at 21.9x earnings and 5.5x sales, a multiple that would look rich for a 5% grower but is undemanding for a software franchise compounding revenue in the high teens with expanding earnings power. The 63% drawdown from prior highs has already purged a great deal of narrative premium.

The glaring contradiction sits in free cash flow: –$23.69B after $55.66B of capex. That is not maintenance spending; it is a deliberate, multi-year build-out of OCI capacity on a scale that rivals the hyperscalers. ROIC prints an almost absurd 95% on the existing capital base while ROA is only 6.5%, underscoring how asset-intensive the new chapter has become. The market is being asked to underwrite that this capex is moat-deepening rather than value-destroying, and the recent revenue acceleration is the first hard evidence that the bet is landing. Insider activity is noise—option exercises followed by partial sales—while the 1.6% dividend and 34% payout ratio remain intact, signaling management is not starving shareholders while it builds.

The strongest case against this read is straightforward and quantitative. Negative FCF of nearly $24B on a $367B market cap cannot be hand-waved indefinitely; if OCI growth stalls or fails to take share from AWS, Azure and Google, Oracle will have incinerated tens of billions with little to show beyond depreciating servers. The valuation models already flag the stock as 7% above their $118 signal-adjusted fair value, and EV/EBITDA of 12x leaves limited room for execution stumbles. Cerner’s integration still carries margin and cultural risk, and the 38% net margin spike in the November quarter looks non-recurring, reminding anyone that reported earnings can be lumpy. A smart skeptic would argue the 17% revenue growth is still heavily reliant on price increases and database lock-in rather than genuine architectural wins in new workloads, and that multiple compression is the base case once capex intensity becomes obvious to the broader market.

I would reverse course if the next two quarters show revenue growth decelerating below 12% while capex stays above $12B per quarter, or if free cash flow remains worse than –$5B without clear evidence that OCI backlog is converting at rising incremental margins. Sustained cloud infrastructure growth above 30% with a visible path to FCF inflection within four quarters would, conversely, make today’s price look like a gift.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 5.0
GPT gpt-5.4 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 4.0
Grok grok-4.5 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 6.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-07-31 00:44:24
Delvantic - Cairn AI
Quality name, rich price - wait for a dip 7/10
Great business, full price, tailwind tape - I wait for a pullback rather than chase a name whose FCF just went $35B the wrong way.
The cruxWhether the $55B+ AI/OCI capex bet converts backlog into positive free cash flow within 4-6 quarters - everything else is noise around that single question.
Forensic checks Derived mechanically from ORCL's filed financials — not from the AI lenses
Liquidity & RunwayCritical Runway
DilutionStable Share Count
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
-13
Mixed
edge √Σ 100 · risk √Σ 112 · conf 6/10

Oracle's operating business looks stronger than it has in years: revenue accelerated from $42.4B (FY22) to $67.4B (FY26), a 12.3% CAGR that reaccelerated to 18.5% in the latest year, while operating margin expanded from 25.7% to 30.6%. Net income nearly tripled from $6.72B to $17.09B over four years. Share count is well-behaved, with diluted shares up only 1.1% CAGR and buybacks roughly offsetting the 7.1%-of-revenue SBC. This is a genuinely mature, high-margin infrastructure software franchise with pricing power and operating leverage. However, the cash story broke hard. FCF swung from +$11.81B in FY24 to -$0.39B in FY25 to -$23.69B in FY26 — a ~$35B two-year swing driven by the AI/cloud capex build. Liquid cash of $31.3B against that burn implies roughly 5 quarters of runway before external financing, and Altman Z of 1.52 sits in the distress zone. OCF/NI of 1.75x and accruals of -5.1% of assets say the reported earnings themselves are cash-backed at the operating line; the stress is entirely on the investing line. Insider tape is unremarkable: Henley's ~$63M of sales were all same-day option-exercise-and-sell mechanics, zero open-market buys, no unusual cluster. Management behavior signals conviction in the capex plan (they are borrowing/spending, not distributing), but shareholders are being asked to underwrite a very large, concentrated bet on AI infrastructure demand materializing as booked.

Strengths 3
m70
Revenue reacceleration with margin expansion
Revenue grew 18.5% in FY26 to $67.4B while operating margin held at ~30.6%, up from 25.7% in FY22. Net income rose from $6.7B to $17.1B over four years — genuine operating leverage in a mature franchise.
m55
Clean earnings quality at the operating line
OCF/NI of 1.75x and accruals of -5.1% of assets indicate reported earnings are backed by cash from operations; no aggressive-accrual footprint.
m45
Disciplined share count
Diluted shares up only 1.1% CAGR (2.79B to 2.91B) with buyback/SBC at 99.1%. Per-share value is not being eroded by dilution despite 7.1%-of-revenue SBC.
Concerns 4
m80
FCF collapse from capex surge
FCF went from +$11.8B (FY24) to -$0.4B (FY25) to -$23.7B (FY26). A ~$35B swing in two years driven by cloud/AI infrastructure capex; the business is now funding growth with debt rather than internal cash.
m65
Altman Z 1.52 in distress zone and thin runway
Only $31.3B liquid cash against a $23.7B annual burn implies ~5 quarters of runway before financing action. Altman Z of 1.52 flags balance-sheet stress, though Oracle's asset-light nature makes the model less reliable.
m40
Concentrated bet on AI demand materializing
The capex step-up is a large, forward bet on backlog converting to revenue. Execution risk is real; a demand shortfall would leave a leveraged balance sheet exposed.
m20
Insider activity net-negative but mechanical
11 sells for $63.7M, zero open-market buys. All large sales are same-day option-exercise-and-sell by Henley — not a strong bearish signal, but no insider is stepping up to buy the capex thesis either.
Two Oracles are visible in the same dataset. The operating business is arguably the best it has been in a decade — revenue reaccelerating with margin expansion is a rare combination for a mature large-cap, and the earnings are cash-backed. But management has decided to plow those earnings, plus a great deal of borrowed money, into a concentrated AI-infrastructure buildout, and the balance sheet is now visibly strained: negative $23.7B FCF, ~5 quarters of runway, Altman Z in the distress band. This is not a low-quality business; it is a high-quality business making a very large, high-variance bet. The correct grade sits in the Mixed zone — I refuse to grade it Strong while FCF is that deep in the red, and I refuse to grade it Shaky when the P&L is this good. If the backlog converts, this looks brilliant in three years; if it doesn't, the leverage will have been the story.
Verify before trusting this (6)
  • RPO/backlog composition and customer concentration in the AI cloud bookings (OpenAI etc.) from 10-K and latest 10-Q
  • Debt schedule, maturities, and covenants — how the -$23.7B FCF is being financed and at what rate
  • Capex guidance for FY27-FY28 and expected FCF inflection year
  • Gross margin by segment (cloud infra vs license/support) — the reported 0 GM in the trajectory table looks like a data artifact; confirm actual GM trend
  • Contractual commitments for GPUs/data-center leases that are off-balance-sheet
  • Whether the Altman Z distress reading reflects real leverage or model-fit issues for asset-light software
Valuation / Mispricing
-68
Rich
edge √Σ 20 · risk √Σ 102 · conf 7/10
Price $127.56 vs composite FV $106.60 and signal-adj FV $118.21 - trading roughly 8-20% ABOVE deserved value, no margin of safety. attractive below $100.00

The composite fair value sits at $106.60 and the signal-adjusted FV at $118.21, both below the $127.56 quote - implying roughly -7% to -16% downside to deserved value, not a discount. The anchored-PE method stretches to $165 but relies on continued multiple expansion into an AI narrative; the EPV floor of $48 shows what the legacy cash engine alone is worth. Splitting the difference honestly, deserved value sits in the $105-$120 zone, and today's price sits at the top or above that band. There is no margin of safety here. The Mixed quality grade (-13) reinforces caution: the operating franchise is excellent, but FCF has turned sharply negative on the OCI/AI capex bet and leverage is stretched, which should REDUCE, not raise, the deserved multiple relative to a clean-balance-sheet compounder. The market is paying a growth-stock price for a business whose free cash flow is currently going backwards. To justify $127.56 you have to underwrite that the AI-infrastructure bet compounds at 30%+ for years and translates into FCF, not just booked revenue - a heroic assumption already embedded. Fairly-valued-to-rich is the honest read; I would want a real pullback before this becomes interesting on price.

Cheap signals 1
m20
Earnings quality is good
The earnings-quality signal is clean (score 1), so no haircut to deserved value from accounting concerns. This supports the higher end of the FV band but does not close the gap to price.
Rich / priced-in 4
m62
Price above composite fair value
$127.56 vs composite FV $106.60 implies -16% to deserved value; even the signal-adjusted $118.21 is 7% below spot. The stock is priced through fair, not below it.
m55
Negative FCF undermines the multiple
AI-capex has pushed FCF sharply negative and stretched leverage. Paying a growth multiple on a company currently burning cash means you are underwriting execution, not buying it at a discount.
m45
Anchored-PE of $165 is the outlier, not the anchor
The bullish $165 method assumes the current elevated multiple persists; the EPV floor at $48 shows the legacy-only downside. Trusting the high anchor is the runaway-method risk.
m40
AI/OCI narrative already priced in
Bull case (30%+ OCI growth, Autonomous DB traction) is consensus. There is no hidden optionality here - the market has re-rated ORCL precisely because of this story.
I do not see a mispricing here - if anything the price is slightly rich. Deserved value on skeptical, quality-adjusted numbers is around $105-$120; the tape is at $127.56. I am being asked to pay a premium for an AI-capex story that has turned free cash flow negative, and I get no margin of safety in exchange. Great business, full-to-rich price. I would want to see this closer to $100 - roughly the composite FV with a modest discount for balance-sheet risk - before it becomes a valuation-driven buy.
Verify before trusting this (4)
  • OCI/cloud infrastructure revenue growth rate and RPO conversion cadence in next print
  • Capex guidance and expected FCF inflection timing - when does the AI build stop consuming cash
  • Net debt trajectory and interest coverage given the leverage buildup
  • Gross margin trend in OCI vs legacy - is the growth accretive or dilutive to unit economics
General Sentiment
+19
Tailwind
tail √Σ 82 · head √Σ 62 · conf 7/10

The pressure on Oracle right now is net positive but not euphoric. The prime story - that OCI and Autonomous Database are a real, if late, cloud win - just got a same-day validation via an expanded Gemini partnership with Google and a blowout Microsoft cloud print that reinforced the whole enterprise-AI-infrastructure narrative. News flow explicitly frames ORCL as 'beaten-down' catching a bid, which is textbook narrative repair after a soft patch. That is a tailwind that lands harder on ORCL than on the average software name because Oracle's story specifically needs external proof points that hyperscaler-adjacent cloud demand is durable. Cutting the other way: the tape is neutral-to-nervous (VIX 17, S&P off its high, 10y at 4.67, market PE 26), and ORCL's 1.71 beta means any risk-off flare-up hits this name roughly 70% harder than the index. There is also a specific overhang in the news - Aschenbrenner's Situational Awareness fund dumping AI-adjacent equities to Citadel, and an AI-chip selloff - which caps how far sentiment can run. Analyst tone is not screaming; the archetype is a steady compounder with moderate intensity and low cult coefficient, so this is a grind-higher setup, not a mania. Net: narrative and news are pushing up, macro is a mild drag amplified by beta. Tailwind, not Strong Tailwind.

Tailwinds 2
m68
Gemini partnership + MSFT cloud halo
Same-day Google Gemini expansion and Microsoft's best day since 2008 on cloud strength directly validate the OCI-is-real thesis and are being cited as the reason ORCL jumped. That is narrative reinforcement landing squarely on this ticker.
m45
Beaten-down setup with improving story
Press explicitly frames ORCL as 'beaten-down' catching a bid - the classic sentiment-repair pattern where a moderate-intensity, moderate-durability narrative starts working again and shorts/underweights get squeezed.
Headwinds 3
m42
High beta into a jittery tape
Beta 1.71 with VIX 17, S&P off its high, and 10y at 4.67 means any macro wobble hits ORCL disproportionately. Neutral regime is fine for now, but the cushion is thin.
m38
AI-adjacent de-risking flows
Aschenbrenner's Situational Awareness fund unwinding its AI book to Citadel and a broad AI-chip selloff create a background flow headwind for anything sold as an AI beneficiary, including OCI.
m25
Rates and market multiple
Higher-for-longer at 4.67% and a 26 P/E tape cap multiple expansion for mature software. It is a persistent low-grade press, not a decisive force on this name.
The pressure on ORCL is leaning positive right now. The narrative was drifting and just got two concrete external validations in one day - Gemini and Microsoft cloud - and the tape is treating it as a beaten-down name catching up rather than a crowded long. That is a Tailwind. But I am not calling it Strong: this is a low-cult, moderate-intensity compounder story, not a mania, and the 1.71 beta into a nervous macro with AI-fund unwinds in the background means the tailwind can be flipped by one bad VIX day. Net lean: up, with a short leash.
Verify before trusting this (4)
  • Whether ORCL holds the Gemini/MSFT-driven bounce over the next 5-10 sessions or fades back - tells you if the narrative repair is real
  • Sell-side target revisions in the next 2 weeks tied to the Google partnership
  • Any crack in hyperscaler capex commentary from AMZN/GOOGL earnings - would hit the OCI validation thesis
  • VIX breaking above 20 or 10y above 4.85 - would flip the high-beta math against ORCL fast
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -9.8% v0.6.0 View full prediction →

When we made this prediction on Jul 31, 2026, ORCL was $127.56. We expect it to be $115.00 by Jan 2027, and we consider it great value under $100.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Jul 31, 2026.

Price when predicted$127.56
Our estimate for Jan 2027$115.00-9.8%
Great value below$100.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06