Oracle Corporation is an enterprise software and cloud services company that combines steady per‑share top‑line growth with high operating profitability and strong cash generation, evidenced by revenue per share of $21.09 and an operating margin of 29.0% in the most recent periods.
The company’s cash generation and earnings quality stand out: trailing twelve‑month operating cash flow is $23.51B versus trailing twelve‑month net income of $15.43B, so cash from operations consistently exceeds reported earnings (Earnings Quality Analysis, Revenue & Net Income).
Revenue and EPS momentum have accelerated recently, with revenue per share rising to \$21.09 after sequential quarterly per-share increases (19.28 → 19.83 → 20.39 → 21.09) and one-year revenue-per-share growth of 11.1%, while diluted EPS grew 32.7% over the past year and most recently reached $5.33 (EPS Diluted & Revenue per Share, Revenue & EPS Growth).
Profitability is durable: net profit margin sits at 25.3% and average net margin historically around 21.2% (Profit Margin Trends).
Going forward, monitor operating cash flow ($23.51B), investing cash flow (–$45.16B TTM), and financing cash flow ($42.38B TTM) for signs of sustainable capital allocation, debt‑to‑equity (3.24) for leverage trends, revenue per share ($21.09) and one‑year growth (11.1%) along with diluted EPS ($5.33) and its one-year gain (32.7%) for top‑line and earnings momentum, and ROE (51.5%) and the trailing P/E (37.7x) for changes in profitability and market valuation.
The foundation of business quality and long-term value creation
ORACLE CORP’s quarterly revenue has trended upward over the multi-year series, rising from roughly $9.2B in mid‑2018 to the mid‑teens in recent quarters. Revenue has been consistently in the $11B–$15B range through 2020–2023 and moved into the $13B–$16B range from 2024 onward, with the most recent quarters clustered at the top of that range. Net income has shown greater volatility over the same period, with multiple quarters around $2–$3B, larger peaks (for example $5.02B in 2021‑02‑28 and $4.03B in 2021‑05‑31), and an isolated negative quarter of –$1.25B in 2021‑11‑30.
In the most recent sequence, revenue rose from $14.93B (2025‑08‑31) and $15.90B (2025‑05‑31) to $16.06B (2025‑11‑30). Net income increased sharply in the latest quarter to $6.13B after $2.93B in 2025‑08‑31 and $3.43B in 2025‑05‑31. The most recent quarterly revenue was $16.06B and net income was $6.13B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Dec 2024 to Nov 2025, Oracle Corp generates $61.02B in revenue. After accounting for taxes and expenses, the company retains 25.3% as net profit margin, resulting in $15.43B in net earnings from $61.02B in revenue.
Period Information
Report Type: Annual (10-K)
Period: Dec 2024 to Nov 2025
Revenue composition by disclosure category for the latest period
Oracle's cloud and license offerings encompass a wide range of products and services delivered via subscriptions, licenses, and support contracts. Key offerings include:
Oracle's hardware segment includes a variety of engineered systems and associated support services:
Oracle offers various services to support implementation, optimization, and training:
Oracle's customer base includes a diverse mix of organizations:
Oracle's products and services are delivered globally through various channels:
Oracle's distribution network involves direct and indirect channels:
Oracle’s revenue streams exhibit both recurring and transactional qualities:
Oracle faces several concentration and dependency risks, including:
Analyzing long-term margin stability and competitive positioning
ORACLE CORP's net profit margin has moved in the low- to mid-20% range through 2024–2025, with quarter-to-quarter stability around 20–22% through early 2025 and a notable uptick in the latest quarter. From 20.3% (2024-02) and 19.8% (2024-05) the margin rose gradually to about 21.2%–21.8% across late 2024 and early 2025, dipped to 21.1% in 2025-08, then increased to 25.3% in 2025-11 — the most recent quarter.
Earlier periods show wider swings, including a trough near 9–10% in 2017 and peaks above 30% in 2020–2021, but recent quarters are concentrated in the low-20s before the latest rise.
Understanding Profit Margins
Between Dec 2024 and Nov 2025, Oracle Corp converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
ORACLE CORP’s trailing twelve‑month operating cash flow has trended upward over the last several years, rising from the mid‑teens in 2022 to $23.51B in the most recent period. Over the same interval net income (TTM) also increased but at a lower absolute level, moving from roughly <$10B–$12B in earlier 2024 data to $15.43B in the latest net income observation. Across recent quarters operating cash flow consistently exceeds reported net income, producing a persistent positive gap between cash generated from operations and accounting earnings.
The most notable recent inflection is the step‑up in reported net income in late 2025 (most recent net income observation $15.43B) alongside continued increases in operating cash flow through early 2026 (latest operating cash flow $23.51B). This maintained divergence in the latest quarters means operating cash flow remains materially higher than net income on a TTM basis. The most recent Operating Cash Flow (TTM) observation was $23.51B. The most recent Net Income (TTM) observation was $15.43B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
ORACLE CORP's ROE transitioned from a solid, mid‑teens/low‑20s range during the 2011–2015 period into significantly higher and more volatile levels starting from 2019. ROE exceeded 70% in late 2019–2020, experienced extreme spikes in 2021–2023—including 905.4% on 2021-08-31 and 792.5% on 2023-05-31—before entering a sustained decline through 2024 and 2025.
Since early 2024, the metric has decreased steadily from 189.3% (2024-02-29) to 120.3% (2024-05-31), then to 101.5% (2024-08-31), 84.6% (2024-11-30), 72.7% (2025-02-28), 60.8% (2025-05-31), and stabilized at 51.5% in the most recent quarters. The latest trailing twelve‑month ROE was 51.5% as of period ending 2025-11-30.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
ORACLE CORP's trailing twelve‑month operating cash flow shows a steady upward trend over the past year, rising from about $20.75B (period ending 2025-02-28) to $23.51B (period ending 2026-02-28). Over the same recent quarters, investing cash flow has become progressively more negative, moving from -$15.29B to -$45.16B, with the most pronounced increase in outflows occurring in the last two reported quarters.
Financing cash flow shifted from modestly positive/negative swings in 2024 into a clear positive trajectory through 2025 and into 2026, increasing sharply from $2.64B (2025-02-28) to $42.38B (2026-02-28).
Notable inflection points in the series are the cross from negative to positive financing flows in early 2025 and the marked widening of investing outflows between 2025-11-30 and 2026-02-28. Operating cash flow has increased steadily but without abrupt changes compared with the other two categories. The most recent trailing twelve‑month values are:
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
ORACLE CORP's trailing twelve-month P/E has moved higher over the past two years with volatility in the last year. From 30.4x at the 2024-02-29 period end it climbed through 2024 to 45.2x by 2024-11-30, oscillated in early 2025 around the high 30s, spiked to 52.4x at the 2025-08-31 period end, and then declined to 37.7x by 2025-11-30. The August 2025 quarter is the most pronounced short-term inflection, standing noticeably above the surrounding quarters.
Viewed over a longer horizon, the P/E was substantially lower in the 2010–2016 range (generally in the low-to-mid teens or single digits) and showed material expansion beginning around 2017–2018 and again through 2023–2025. The most recent trailing twelve-month P/E ratio (period ending 2025-11-30) was 37.7x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.