- Prev. close
- $137.39
- Volume
- 8.5M
- Market cap
- $421.7B
Stock and sector context
Tech & Internetinflow- Sector comparison
- Of 7 covered Tech & Internet stocks in US, 6 rose; the average change was +1.49%. Oracle moved in the same direction at +1.22%. Estimated sector flow was inflow.
- Variables to watch
- US interest ratesCloud demandDigital ad spendingPlatform regulation
- Risks to check
- -57% below the high, the downtrend may continue
- Tighter platform regulation
- An ad spending slowdown
This compares price changes among covered stocks in the same market. It does not establish why prices moved. Variables and risks are sector reference lists.
Why a candidate
Match 74/100The match score marks how many conditions overlap on a 0 to 100 scale: the 52-week range, valuation metrics, price change and volume. It is not a probability of rising or a forecast return.
Today's read
Oracle scores 74 out of 100 on today's InverseOne match ranking, 1 of 30 in the US large-cap universe. The gap to its 52-week high is 132%. Today's move of +1.22% came with money flowing in, alongside the Tech & Internet sector. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-10-13 close, 10-14 00:20 KST updated, For reference only, not advice
Same-sector stocks, Tech & Internet
Company research
ExpandedResearched 2026-09-15 01:26 KSTTake out the $11.36 billion that customers paid in advance and Oracle's first-quarter operating cash flow grew 44 percent, not 184 percent.
Oracle earns its money from database and business software, the support contracts attached to it, and computing and storage capacity rented out through its cloud. Revenue for the first quarter of fiscal 2027, which ended on 31 August 2026, was $19.35 billion, up 30 percent on the year, and cloud infrastructure revenue rose 121 percent to $7.39 billion. Capital expenditures of $28.50 billion in the quarter were more than half of the whole of fiscal 2026, and the $23.10 billion of cash from operating activities includes $11.36 billion of customer prepayments. The company raised $19.91 billion by issuing new shares during the quarter, and remaining performance obligations reached $664 billion, $26 billion more than three months earlier.
Key figures
- First-quarter revenue
- $19.35bn
- Q1 fiscal 2027
- Cloud infrastructure revenue
- $7.39bn
- Q1 fiscal 2027
- Cash from operating activities
- $23.10bn
- Q1 fiscal 2027
- Capital expenditures
- $28.50bn
- Q1 fiscal 2027
- Remaining performance obligations
- $664bn
- 2026-08-31
- Share due as revenue within 12 months
- about 13%
- 2026-08-31
$4.2 billion of borrowings repaid, $19.9 billion brought in through shares
Capital expenditures in the first quarter of fiscal 2027 were $28.50 billion, 3.4 times the $8.50 billion of the same quarter a year earlier and more than half of the $55.66 billion spent across the whole of fiscal 2026. Cash from operating activities over the same three months was $23.10 billion, so the free cash flow the company presents came to minus $5.40 billion. The money arrived by a different route than last year. In fiscal 2026 senior notes with $43.0 billion of par value were the largest outside source of funds; this quarter's cash flow statement instead shows $4.20 billion of repayments on senior notes, term loans and other borrowings alongside $19.91 billion of net proceeds from issuing common stock. According to the quarterly report, the company fully used its at-the-market (ATM) program, which allowed up to $20 billion of shares to be sold into the market over time, and issued approximately 141 million shares. Stockholders' equity went from $43.06 billion three months earlier to $67.20 billion. The company also publishes its own net cash outlay for capital expenditures, $17.97 billion: capital expenditures less the $11.36 billion of customer prepayments, plus $0.83 billion of repayments on short-term financing tied to equipment.
Capital expenditures by quarter (USD bn)
The $11.4 billion of customer prepayments inside $23.1 billion of operating cash
Cash from operating activities rose 184 percent, from $8.14 billion in the same quarter a year earlier to $23.10 billion. The quarterly report attributes the $15.0 billion increase primarily to higher net income adjusted for certain non-cash charges and to cash-favourable working capital changes, and says those changes include $11.4 billion of cash inflows from customer prepayments with a significant financing component. In the cash flow statement the prepayments appear as an increase in deferred revenues of $11.36 billion, a line that did not exist in the same quarter a year earlier. Leaving that amount out, cash from operating activities was $11.74 billion, 44 percent more than a year before. The prepayments are not the only line that grew. Net income rose 63 percent from $2.93 billion to $4.76 billion, and depreciation, an expense that uses no cash, went from $1.35 billion to $3.16 billion.
First-quarter cash from operating activities and customer prepayments (USD m)
- Same quarter a year earlier8140
- This quarter, excluding prepayments11740
- Customer prepayments11363
- This quarter, total23103
13 percent of $664 billion falls inside twelve months, against 10 percent a year ago
Remaining performance obligations are amounts under signed contracts that have not been recognised as revenue yet. The balance at 31 August 2026 was $664 billion, $26 billion more than three months earlier and $208.7 billion more than a year earlier. In its quarterly report the company says it expects to recognise approximately 13 percent of the balance over the next twelve months, 37 percent from month 13 to month 36 and 34 percent from month 37 to month 60, with the remaining 16 percent after that. In the annual report three months earlier the same four buckets were 12, 34, 34 and 20 percent, and in the report for the same quarter a year earlier they were 10, 25, 34 and 31 percent. Over the year the share falling beyond month 60 shrank from 31 percent to 16 percent, and the share between month 13 and month 36 grew from 25 percent to 37 percent. Applying the percentage, the twelve-month portion is roughly $86.3 billion, more than the $67.36 billion of revenue booked in all of fiscal 2026. In its earnings release the company said it signed more than $30 billion of new cloud contracts for model training and inference during the quarter. That figure is a management statement; what the notes to the quarterly report give is the balance and the timing percentages.
When the $664 billion of remaining performance obligations at 31 August 2026 is expected to become revenue
- Next 12 months13%
- Months 13 to 3637%
- Months 37 to 6034%
- After that16%
Cloud infrastructure has been the largest quarterly revenue line for two quarters running
Splitting the $19.35 billion of first-quarter revenue by offering puts cloud infrastructure first at $7.39 billion, followed by software support at $4.90 billion, cloud applications at $4.22 billion, services at $1.41 billion, hardware at $0.77 billion and software licenses at $0.66 billion. Cloud infrastructure first overtook software support on a quarterly basis in the fourth quarter of fiscal 2026, at $5.79 billion against $4.94 billion. Across a full year the order is still the other way round: for fiscal 2026 as a whole, software support at $19.80 billion was larger than cloud infrastructure at $18.10 billion. Against the same quarter a year earlier, cloud infrastructure grew 121 percent and cloud applications 10 percent, while software support fell 1 percent and licenses 15 percent. The company expects second-quarter total revenue to grow between 30 and 34 percent on the year and total revenue for fiscal 2027 to be at least $90 billion.
Cloud infrastructure revenue by quarter (USD bn)
Off-balance-sheet lease commitments went from $260 billion to $288 billion in three months
Notes payable and other borrowings at 31 August 2026 came to $125.34 billion, $7.63 billion current and $117.71 billion non-current, below the $129.54 billion of three months earlier. Interest expense for the quarter was $1.43 billion, 55 percent more than the $0.92 billion of the same quarter a year earlier. Leases moved the other way: operating lease right-of-use assets rose from $29.69 billion to $33.97 billion. Note 6 of the quarterly report states $288 billion of additional lease commitments that are not reflected on the balance sheet or in the maturity table, substantially all related to data center arrangements and generally expected to commence between the second quarter of fiscal 2027 and fiscal 2029 for terms of fifteen to nineteen years. In the annual report three months earlier the same commitments were $260 billion. The quarterly report says the company entered into certain significant leases for data centers and other contractual commitments during the quarter. The principal schedule below is the annual report's table at 31 May 2026, when total assets were $261.76 billion; total assets at 31 August 2026 were $303.26 billion.
Future principal payments on all borrowings at 31 May 2026 (USD bn)
Remaining performance obligations at each quarter end (USD bn)
Common questions
- When does the $664 billion of remaining performance obligations turn into revenue?
- In its quarterly report for the period ended 31 August 2026, the company says it expects to recognise approximately 13 percent over the next twelve months, 37 percent from month 13 to month 36 and 34 percent from month 37 to month 60, with the remaining 16 percent after that. In the report for the same quarter a year earlier, the twelve-month share was 10 percent.
- Why did Oracle's first-quarter operating cash flow rise 184 percent?
- The quarterly report points mainly to higher net income and working capital changes, and says those changes include $11.4 billion of customer prepayments. Leaving out the $11.36 billion prepayment line in the cash flow statement, the increase is 44 percent.
- What happened to Larry Ellison's plan to sell Oracle stock?
- It was cancelled. On 12 September Oracle announced that Larry Ellison, Executive Chair of the Board and Chief Technology Officer, had cancelled his 10b5-1 plan to sell Oracle stock. The company said no stock was sold under that plan and that he has no other plans to sell any of his Oracle stock.
- Where are the $288 billion of lease commitments written down, if they are not on the balance sheet?
- They sit in note 6 of the quarterly report for the period ended 31 August 2026, in the paragraph under the lease maturity table. The company describes them as substantially all data center arrangements, generally expected to commence between the second quarter of fiscal 2027 and fiscal 2029 for terms of fifteen to nineteen years. The same commitments stood at $260 billion in the annual report three months earlier.
Sources
- 1.First quarter fiscal 2027 earnings release (Form 8-K, Exhibit 99.1) US Securities and Exchange Commission, EDGAR, as of 2026-09-10
- 2.First quarter fiscal 2027 report (Form 10-Q, quarter ended 31 August 2026) US Securities and Exchange Commission, EDGAR, as of 2026-09-11
- 3.Oracle annual report for fiscal 2026 (Form 10-K, year ended 31 May 2026) US Securities and Exchange Commission, EDGAR, as of 2026-06-22
- 4.First quarter fiscal 2026 report (Form 10-Q, quarter ended 31 August 2025) US Securities and Exchange Commission, EDGAR, as of 2025-09-10
- 5.Remaining performance obligations as filed (XBRL company concept data) US Securities and Exchange Commission, as of 2026-09-11
- 6.Press release on Larry Ellison cancelling his plan to sell Oracle stock (Form 8-K, Exhibit 99.1) US Securities and Exchange Commission, EDGAR, as of 2026-09-12
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
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Today's talking points
- It sits low in its 52-week range (12).
- Tech & Internet, its sector, drew the most money today.
- It is 132% below its 52-week high.
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