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Oracle Corporation(ORCL)

F

Financial data as of May 31, 2026Improving · Technology

FCF Margin-42.3%Free Cash Flow / Revenue
Cash Conversion187.1%Operating CF / Net Income
Free Cash Flow-$23.7B
Revenue$67.4B
Net Cash-$124.9BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio1.12Adequate short-term liquidity
YoY FCF Growth+27.2%0 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Negative FCF in 4 of last 4 quarters
→
+1Strong YoY FCF growth (27.2% YoY)
→
-1Only 0 positive quarters recently
→
+0.25Solid revenue growth (20.6% YoY)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (187%)
  • Strong YoY FCF growth (+27.2%)
  • Strong revenue growth (20.6% YoY)

Concerns

  • Negative FCF margin (-42.3%)
  • Net debt position ($124.9B)
  • Only 0 positive FCF quarters recently
Heavy CapEx — Operating cash flow is strong (47% margin) but most is reinvestedSBC-adjusted FCF used — $4.8B stock-based compensation (20% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-42.3%
Net Margin25.4%
Operating CF Margin47.5%
CapEx Ratio82.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$124.9BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio1.12Adequate liquidity
Debt / Equity4.16High leverage

Quarterly FCF Trend

+27.2% YoYImproving (+27.2%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameOracle Corporation
SectorTechnology
Free Cash Flow-$23.7B
Revenue$67.4B
Net Income$17.1B
Operating Cash Flow$32.0B
Capital Expenditure$55.7B
FCF Margin-42.3%
Cash Conversion Rate187.1%
Net Margin25.4%
Total Debt$156.2B
Total Cash$31.3B
Net Cash-$124.9B
Current Ratio1.12
Debt / Equity4.16
Debt / FCFN/A
YoY FCF Growth+27.2%
Positive Quarters0 of 5
Trend DirectionImproving
Report DateMay 31, 2026
GradeF
Data SourceYahoo Finance

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