What this score covers. It is a fixed screen of five reported ratios with no valuation input, so a company can score highly while its valuation risk remains elevated. The full report scores valuation separately, as one of nine scored sections. How the score is calculated
Oracle Corporation (ORCL) is a Technology company in the Software - Infrastructure industry. It has a 84/100 Strong Buy score on our five-factor fundamentals screen. Key strengths include Revenue Growth (29.6%), Gross Margin (64.0%), Net Margin (26.4%). Areas to watch: Debt/Equity (2.52). The score is a five-factor screen — revenue growth, gross margin, net margin, return on equity and debt-to-equity — each scored against fixed thresholds from a neutral starting point of 50 points. The full report scores nine sections, including moat, free cash flow, dilution and valuation, which this screen does not.
This page score and the strengths and concerns above are produced by deterministic, rule-based calculations from the available third-party financial inputs documented below. AI does not choose the score, strengths, or concerns. Data and automated summaries can contain errors. This is not personalized investment advice. See our methodology and disclaimer.
Historical filing-based context — Quarter ended August 31, 2026 (Q1 fiscal 2027), compared with the quarter ended August 31, 2025 (Q1 fiscal 2026). This editorial context is separate from the live provider-based score above. This is dated filing-based context, not a live business update.
Oracle's Form 10-Q for the first quarter of fiscal 2027 reports GAAP total revenues of $19,345 million, up from $14,926 million a year earlier. Cloud revenues were $11,607 million (60% of total revenues per the 10-Q), and cloud infrastructure revenue was $7,388 million against $3,347 million. Capital expenditures were $28,499 million against $8,502 million, and free cash flow, Oracle's non-GAAP measure, was negative $5,396 million. Remaining performance obligations were $664 billion. Amounts are in USD millions unless stated.
Oracle reports four revenue lines: cloud (cloud applications and cloud infrastructure), software (license and support), hardware and services. It has three businesses, each a single operating segment: cloud and software, hardware, and services. Source: 10-Q: Item 2 MD&A – Business Overview; 10-Q: Note 9 – Segment Information
Cloud revenues were 60% of total revenues in Q1 FY2027 and 48% in Q1 FY2026. The 10-Q says the proportion of cloud revenues has increased and that Oracle expects this trend to continue. It also describes programs that let customers move existing application and infrastructure software licenses, and the related support, to Oracle Cloud. Source: 10-Q: Item 2 MD&A – Cloud and Software Business
By region, the Americas were 71% of revenues (65% a year earlier), EMEA 19% (23%) and Asia Pacific 10% (12%). Source: 10-Q: Item 2 MD&A – Total Revenues and Operating Expenses
Remaining performance obligations, which are contracted revenue not yet recognized, were $664 billion at August 31, 2026, against $455 billion a year earlier. Oracle expects to recognize about 13% over the next twelve months, 37% over months 13 to 36, 34% over months 37 to 60 and the remainder after that. The 10-Q attributes the increase primarily to certain significant cloud contracts entered into during the period. Source: 10-Q: Note 1 – Basis of Presentation: Remaining Performance Obligations; 10-Q: Item 2 MD&A – Remaining Performance Obligations
Some customers prepay. Oracle received $11.4 billion of customer prepayments that included a significant financing component in Q1 FY2027, and none in Q1 FY2026. Total deferred revenues were $30,789 million at August 31, 2026 (current $14,686 million; non-current $16,103 million, included in other non-current liabilities) against $15,395 million at May 31, 2026. Source: 10-Q: Note 1 – Basis of Presentation: Customer Prepayments and Sales of Financing Receivables; 10-Q: Note 5 – Deferred Revenues
Each figure shows its period, unit and accounting basis. Changes are calculated by StrongBuyAnalytics from the rounded figures shown, so they can differ slightly from percentages a company reports. “pp” means percentage points; “n/m” means not meaningful because a value is zero or negative.
Revenue by line of business
GAAP, USD millions. Q1 FY2027 = three months ended August 31, 2026; Q1 FY2026 = three months ended August 31, 2025. Oracle's fiscal year ends May 31.
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Cloud GAAP | $11,607 million | $7,186 million | +61.5% |
| of which cloud infrastructure GAAP | $7,388 million | $3,347 million | +120.7% |
| of which cloud applications GAAP | $4,219 million | $3,839 million | +9.9% |
| Software GAAP | $5,550 million | $5,721 million | −3.0% |
| of which software license GAAP | $655 million | $766 million | −14.5% |
| of which software support GAAP | $4,895 million | $4,955 million | −1.2% |
| Hardware GAAP | $774 million | $670 million | +15.5% |
| Services GAAP | $1,414 million | $1,349 million | +4.8% |
| Total revenues GAAP | $19,345 million | $14,926 million | +29.6% |
Source: 10-Q: Condensed Consolidated Statements of Operations; 10-Q: Item 2 MD&A – Cloud and Software Business
Revenue by region
GAAP, USD millions. Q1 FY2027 = three months ended August 31, 2026; Q1 FY2026 = three months ended August 31, 2025. Oracle's fiscal year ends May 31.
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Americas GAAP | $13,711 million | $9,662 million | +41.9% |
| Europe, Middle East and Africa GAAP | $3,726 million | $3,481 million | +7.0% |
| Asia Pacific GAAP | $1,908 million | $1,783 million | +7.0% |
| Total revenues GAAP | $19,345 million | $14,926 million | +29.6% |
Source: 10-Q: Item 2 MD&A – Total Revenues and Operating Expenses
Operating results and per-share amounts
GAAP, USD millions. Q1 FY2027 = three months ended August 31, 2026; Q1 FY2026 = three months ended August 31, 2025. Oracle's fiscal year ends May 31. Interest expense is shown as a positive amount.
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Operating income GAAP | $6,728 million | $4,277 million | +57.3% |
| Interest expense GAAP | $1,428 million | $923 million | +54.7% |
| Net income GAAP | $4,760 million | $2,927 million | +62.6% |
| Preferred stock dividends GAAP | $81 million | $0 million | n/m |
| Net income available to common shareholders GAAP | $4,679 million | $2,927 million | +59.9% |
| Diluted earnings per share GAAP | $1.56 | $1.01 | +54.5% |
| Weighted average diluted shares GAAP | 3,000 million | 2,909 million | +3.1% |
Source: 10-Q: Condensed Consolidated Statements of Operations
Margin by business, as Oracle measures it
USD millions. Q1 FY2027 = three months ended August 31, 2026; Q1 FY2026 = three months ended August 31, 2025. Oracle's segment margin reflects only the direct controllable costs of each business and excludes research and development, general and administrative costs, amortization of intangibles and other items, so it is not comparable to GAAP operating income. The percentage is calculated by StrongBuyAnalytics from the reported figures (Oracle's own table shows 55% and 60%, rounded).
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Cloud and software margin Segment margin (Oracle-defined) | $9,358 million | $7,691 million | +21.7% |
| Cloud and software margin as a share of its revenue Calculated by StrongBuyAnalytics | 54.5% | 59.6% | −5.1 pp |
| Hardware margin Segment margin (Oracle-defined) | $452 million | $447 million | +1.1% |
| Services margin Segment margin (Oracle-defined) | $445 million | $332 million | +34.0% |
| Total margin for operating segments Segment margin (Oracle-defined) | $10,255 million | $8,470 million | +21.1% |
Source: 10-Q: Note 9 – Segment Information; 10-Q: Item 2 MD&A – Cloud and Software Business
Revenues rose to 19,345 from 14,926. Cloud revenues rose to 11,607 from 7,186: cloud infrastructure to 7,388 from 3,347 and cloud applications to 4,219 from 3,839. Software revenues fell to 5,550 from 5,721 (license 655 against 766; support 4,895 against 4,955). In constant currency, the 10-Q says cloud infrastructure and cloud applications contributed 91% and 9% of cloud revenue growth. Source: 10-Q: Item 2 MD&A – Cloud and Software Business
Operating income rose to 6,728 from 4,277. Two items Oracle reports separately were lower: amortization of intangible assets (202 against 420) and restructuring and other (94 against 415). Together they were 539 lower, within a 2,451 increase in operating income (both differences calculated by StrongBuyAnalytics). Source: 10-Q: Condensed Consolidated Statements of Operations
Cloud and software margin, Oracle's segment measure, rose to 9,358 from 7,691 but fell as a share of that business's revenue to about 54.5% from 59.6% (calculated). The 10-Q says the constant-currency decline in the margin percentage was due to higher infrastructure expenses to support growth in cloud infrastructure, and that Oracle expects its cloud and software expenses to keep growing during fiscal 2027 and the next few fiscal years. Source: 10-Q: Item 2 MD&A – Cloud and Software Business; 10-Q: Note 9 – Segment Information
Net income was 4,760 against 2,927. Interest expense rose to 1,428 from 923. Preferred stock dividends were 81 (none a year earlier), so net income available to common shareholders was 4,679. Diluted earnings per share were $1.56 against $1.01, on 3,000 million against 2,909 million weighted average diluted shares. Source: 10-Q: Condensed Consolidated Statements of Operations
Net cash provided by operating activities was 23,103 against 8,140, and capital expenditures were 28,499 against 8,502, so free cash flow, Oracle's non-GAAP measure, was negative 5,396 against negative 362. Operating cash flow included an 11,363 increase in deferred revenues from customer prepayments with a significant financing component (none in Q1 FY2026) and a 3,997 increase in other deferred revenues (2,550 a year earlier). Source: 10-Q: Condensed Consolidated Statements of Cash Flows; 10-Q: Item 2 MD&A – Free cash flow
The 10-Q attributes the increase in capital expenditures primarily to the expansion of Oracle's data centers, and says Oracle expects fiscal 2027 capital expenditures to be higher than fiscal 2026 as it adds data center capacity and builds data centers in new geographic locations. Source: 10-Q: Item 2 MD&A – Capital Expenditures
Oracle fully used its $20 billion at-the-market stock program (agreement dated February 2, 2026, amended June 23, 2026) in the quarter, issuing about 141 million shares for net proceeds of $19.9 billion. Common shares outstanding were 3,024 million at August 31, 2026 against 2,880 million at May 31, 2026. The 10-Q says proceeds are for general corporate purposes, which may include capital expenditures and repayment of indebtedness. Source: 10-Q: Note 7 – Stockholders' Equity; 10-Q: Item 2 MD&A – Recent Financing Activities
Borrowings were 125,337 in total at August 31, 2026 (current 7,625; non-current 117,712), against 129,541 at May 31, 2026 (calculated). Oracle repurchased no shares in the quarter; about $6.3 billion remained under its repurchase authorization. Common stock dividends declared were $0.50 per share in both quarters. Source: 10-Q: Condensed Consolidated Balance Sheets; 10-Q: Note 7 – Stockholders' Equity
Oracle disclosed $288 billion of additional lease commitments that were not on its balance sheet at August 31, 2026. They relate substantially to data center arrangements, are generally expected to commence between the second quarter of fiscal 2027 and fiscal 2029, and have terms of fifteen to nineteen years. Recorded lease liabilities were 34,621 (operating) and 9,185 (finance). Operating lease expense was 1,101 against 575. Source: 10-Q: Note 6 – Leases and Other Commitments
Unconditional purchase and certain other obligations with terms of one year or more were $34,150 million, mainly long-term supply arrangements for components for cloud infrastructure assets and power supply arrangements for data centers: 5,449 for the rest of fiscal 2027, 6,176 in fiscal 2028, 3,863 in fiscal 2029, 4,318 in fiscal 2030, 6,768 in fiscal 2031, 954 in fiscal 2032 and 6,622 after that. Source: 10-Q: Note 6 – Leases and Other Commitments
Cash flow and capital expenditures
GAAP, USD millions. Q1 FY2027 = three months ended August 31, 2026; Q1 FY2026 = three months ended August 31, 2025. Oracle's fiscal year ends May 31. Free cash flow is Oracle's non-GAAP measure (operating cash flow less capital expenditures). Capital expenditures are shown as positive amounts of cash spent.
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Net cash provided by operating activities GAAP | $23,103 million | $8,140 million | +183.8% |
| Capital expenditures GAAP | $28,499 million | $8,502 million | +235.2% |
| Free cash flow Non-GAAP (Oracle-defined) | −$5,396 million | −$362 million | n/m |
| Depreciation GAAP | $3,156 million | $1,351 million | +133.6% |
| Payments of dividends to stockholders GAAP | $1,565 million | $1,413 million | +10.8% |
Source: 10-Q: Condensed Consolidated Statements of Cash Flows; 10-Q: Item 2 MD&A – Free cash flow
Balance sheet and funding
GAAP, USD millions, at August 31, 2026 compared with May 31, 2026 (the prior fiscal year-end, not the same quarter a year earlier). Total borrowings is the sum of the two reported borrowings lines, calculated by StrongBuyAnalytics.
| Measure | August 31, 2026 | May 31, 2026 | Change |
|---|---|---|---|
| Cash, cash equivalents and marketable securities GAAP | $37,077 million | $31,894 million | +16.3% |
| Notes payable and other borrowings, current GAAP | $7,625 million | $7,199 million | +5.9% |
| Notes payable and other borrowings, non-current GAAP | $117,712 million | $122,342 million | −3.8% |
| Total borrowings (calculated) Calculated by StrongBuyAnalytics | $125,337 million | $129,541 million | −3.2% |
| Total deferred revenues (current and non-current) GAAP | $30,789 million | $15,395 million | +100.0% |
| Property, plant and equipment, net GAAP | $127,845 million | $99,957 million | +27.9% |
| Total assets GAAP | $303,259 million | $261,759 million | +15.9% |
| Total stockholders' equity GAAP | $67,196 million | $43,056 million | +56.1% |
Source: 10-Q: Condensed Consolidated Balance Sheets; 10-Q: Note 5 – Deferred Revenues; 10-Q: Item 2 MD&A – Liquidity and Capital Resources
Capital intensity. Capital expenditures were 28,499 in one quarter, against 8,502, and the 10-Q says they are expected to be higher in fiscal 2027 than in fiscal 2026. Free cash flow was negative in both quarters shown. Source: 10-Q: Item 2 MD&A – Capital Expenditures; 10-Q: Item 2 MD&A – Free cash flow
Margin mix. The 10-Q says cloud and software expenses have grown in recent periods, that the margin percentage fell on higher infrastructure expenses, and that Oracle expects the expense trend to continue during fiscal 2027 and the next few fiscal years. Source: 10-Q: Item 2 MD&A – Cloud and Software Business
Securities litigation. A putative class action filed on February 3, 2026 in the U.S. District Court for the District of Delaware, amended on July 14, 2026, alleges false and misleading statements about Oracle's cloud infrastructure business. Oracle says it has meritorious defenses and does not believe the outcome will have a material impact on its financial position or results of operations. Defendants were due to respond to the amended complaint by September 16, 2026. Source: 10-Q: Note 11 – Legal Proceedings
Privacy litigation. A purported class action by The Privacy Collective in the District Court of Amsterdam concerns Oracle's Data Management Platform product. After a July 17, 2026 Supreme Court ruling, the case was remanded to the Court of Appeal. Oracle says it has meritorious defenses and does not believe the outcome will have a material impact. Source: 10-Q: Note 11 – Legal Proceedings
Competition, customers and supply. The 10-Q does not restate these risk factors. It refers readers to Part I, Item 1A of Oracle's Form 10-K for the fiscal year ended May 31, 2026, which this page did not read. Source: 10-Q: Part II, Item 1A – Risk Factors
Every figure above comes from the documents below, filed with the U.S. Securities and Exchange Commission (SEC). Accession numbers identify each filing.
0001193125-26-389274.
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Filing index
Later filings, listed by identifier only. These were filed after the documents above and are not summarized on this page.
0001193125-26-389753.
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Filings this page did not read. They exist, but their text was not used for the analysis above.
0001193125-26-277521.
Filing index
0001193125-26-387905.
Filing index
Source access note. Only Oracle's Form 10-Q was read for this page. When the StrongBuyAnalytics research was prepared on October 4, 2026, EDGAR links for Oracle's fiscal 2026 Form 10-K and its September 10, 2026 results release (accession numbers beginning 0001193125) could not be opened from our systems, so those documents were not read. If a link below does not open, search EDGAR for Oracle (CIK 1341439) and the accession number shown.
The calculation starts at 50 points and applies the five fixed adjustments shown below. Missing or invalid inputs contribute no adjustment. A finite provider-reported zero is treated as a measured value and evaluated against that input's displayed threshold. The pre-clamp result is 84; the published result is clamped to a minimum of 10 and maximum of 98, producing 84/100.
| Input | Displayed value | Threshold applied | Adjustment | Data status |
|---|---|---|---|---|
| Revenue Growth | 29.6% | > 20% | +12 | Available |
| Gross Margin | 64.0% | > 50% | +10 | Available |
| Net Margin | 26.4% | > 20% | +10 | Available |
| Return on Equity | 41.2% | > 20% | +10 | Available |
| Debt/Equity | 2.52 | 1.00 or higher | -8 | Available |
80 or higher: Strong Buy; 65–79: Buy; 50–64: Hold; below 50: Caution.
These are fixed names for score ranges. The score is not a success probability, recommendation, or forecast, and 80/100 does not mean an 80% chance of a gain.
This page was generated . The provider identifies the latest underlying financial period as August 31, 2026. The displayed market quote is dated October 16, 2026. Generation time is not the same as the date of the underlying filing or market observation.
Financial inputs may be delayed, restated, differently standardized by the data provider, or unavailable. Missing, invalid, or non-finite values receive no positive or negative adjustment rather than being estimated. A finite provider-reported zero is retained and evaluated against that metric's displayed threshold; it is not treated as missing. This can make a sparse-data score less informative. The screen does not capture every business, market, valuation, or portfolio risk, and investors can lose money.
Review filings at SEC EDGAR and read our data sources, score guide, methodology, AI disclosure, and corrections policy.
The 84/100 on this page comes from a fixed screen of 5 ratios. The downloadable report is a separate analysis with its own score, built from 9 weighted sections.
Each factor is scored against fixed thresholds from a starting point of 50 points. No factor prices the stock, so valuation is not part of the 84/100.
When the inputs allow, the report also shows a fair-value estimate with its discounted cash flow (DCF) assumptions and a 3×3 sensitivity table, a confidence figure, and the data limitations that reduced that confidence. Its headline label can add a valuation-risk flag next to the fundamental-quality rating.
4 data points drawn from analyst targets, consensus estimates, and ownership data. These are supplementary observations, not event predictions or causal explanations:
Compared against other Software - Infrastructure companies we cover, picked for having a similar market capitalisation to ORCL.
Comparison context only: this peer set is selected statically from our covered companies using industry and company-size context. Peer data and peer selection do not change the ORCL page score.
3 measurable indicators visible in Oracle Corporation's reported numbers. These are market and valuation risk metrics — not a comprehensive list of business risks, which would require qualitative analysis beyond this data:
Oracle Corporation's liquidity and cash generation as of the most recent filing — note the cash position of $37.08B against $169.14B of debt:
These are provider-normalized figures and may differ from the issuer's as-filed presentation, units, or latest amendment. Use source filings for verification.
Institutional investment managers with >$100 M in qualifying assets must disclose their equity positions quarterly on SEC Form 13F — typically within 45 days of quarter-end. Search those filings below to see which hedge funds, mutual funds, and asset managers reported ORCL as a holding, how many shares they held, and how positions changed quarter over quarter.
ORCL rates 84/100 on our five-factor fundamentals screen, which puts it in the "Strong Buy" band. The band name describes a fixed range in this model; it is not a recommendation or prediction. The calculation above shows how each reported input affected the result.
Oracle Corporation clears our thresholds on most of what we measure. The strongest readings are revenue growth (29.6%) and gross margin (64.0%). It is not unqualified: debt/equity (2.52) works against it.
Oracle Corporation reported revenue growth of 29.6% year over year, against a Software - Infrastructure peer set where scale and pricing power vary widely. Growth at that level is the single largest positive contributor to the ORCL score.
Earnings grew 54.5% over the same period, outpacing revenue — a sign of operating leverage.
Track upcoming report dates on our earnings calendar.
This is a review of reported fundamentals, not a price target or an estimate of future returns. These are the current figures that may be useful to monitor as new filings become available.
Current reading: Revenue growth of 29.6% is above the model's 10% threshold. Net margins of 26.4% show how much reported revenue currently converts to profit. Future filings may change either figure and the resulting score.
These are the Oracle Corporation figures that push the score up, taken straight from the most recent reported financials:
These are the figures working against ORCL in the same model:
See how the metrics on this ORCL page — quality score, valuation, DCF scenarios, confidence labels, and data limitations — are organized in the downloadable research report.
Generate My Free ORCL ReportGuides to the specific measures used in this ORCL analysis:
How the financial statements behind this page fit together.
Understanding P/E RatioWhat ORCL's 20.1x multiple does and does not tell you.
Return on Equity (ROE)Why ORCL's 41.2% return on equity matters for stock selection.
Stock Valuation MethodsHow DCF, multiples and asset-based approaches value a company like Oracle Corporation.
DCF Assumptions and LimitationsWhat a discounted cash flow estimate for ORCL depends on, and where it breaks down.
How to Read an AI Stock ReportWhat each section of a ORCL report is for, and what it leaves out.
How to Read Earnings ReportsWhere the ORCL growth and margin figures on this page come from.
What Are Demand Zones?The technical side we deliberately keep out of the ORCL score.
Latest SEC filings for ORCL explained in plain English — insider buys/sells (Form 4), proposed sales (Form 144), material events (8-K), and quarterly & annual reports.