FMP

FMP

Oracle Corporation's Mixed Earnings Report and Financial Health

Oracle Corporation (NYSE:ORCL) is a leading technology company known for its software products and services, including database management systems and cloud solutions. The company competes with other tech giants like Microsoft and SAP. On December 10, 2025, Oracle reported earnings per share of $2.26, exceeding the estimated $1.63, but its revenue of $16.06 billion fell short of the expected $16.86 billion.

The revenue miss led to a significant decline in Oracle's share price, dropping over 6% in after-hours trading. Concerns about AI infrastructure spending and the company's debt levels have also contributed to the stock's slide. Oracle's debt-to-equity ratio is approximately 4.36, indicating a high level of debt compared to its equity, which may worry investors. Oracle's financial metrics reveal a price-to-earnings (P/E) ratio of about 50.72 and a price-to-sales ratio of around 10.61.

The enterprise value to sales ratio is approximately 12.22, while the enterprise value to operating cash flow ratio stands at about 33.50. These figures suggest that Oracle is valued highly relative to its sales and cash flow, which could impact investor sentiment. The company's current ratio is approximately 0.62, indicating potential liquidity challenges in meeting short-term obligations. This ratio measures the company's ability to cover its short-term liabilities with its short-term assets. An earnings yield of about 1.97% further reflects the company's profitability relative to its share price, which may influence investor decisions.