Oracle Corporation‘s stock (ORCL) is trading at a price-to-earnings ratio of 36.7, significantly exceeding its historical average of 26.8 and the Zacks Computer-Software industry average of 35.32. For fiscal Q4 2025, Oracle reported revenues of $15.9 billion, an 11% year-over-year increase, with cloud infrastructure revenues rising by 52% to $3 billion. The Zacks Consensus Estimate for fiscal 2026 revenues stands at $66.6 billion, a 16.02% increase year-over-year, while estimated earnings are projected at $6.73 per share.
Oracle is investing over $25 billion in capital expenditures in fiscal 2026, significantly higher than its fiscal 2024 spending of $7 billion. The company faces competition from Amazon AWS (30% market share), Microsoft Azure (20%), and Google Cloud (13%) in the cloud infrastructure space. Despite these challenges, Oracle has gained 52.3% in stock value this year, outperforming its sector average of 14.6%.
Despite its strong growth initiatives, Oracle’s elevated valuation is a point of concern. Investors with existing positions may benefit from holding, while new investors are advised to wait for more favorable entry points. Oracle has a Zacks Rank #3 (Hold).
