Free cash flow has deteriorated to a negative $1.9 billion in 2026Q4, driven by an aggressive CapEx/Revenue ratio that surged to 86.0%.
| Metric | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Cash from Operations | 31.98B | 20.82B | 18.67B | 17.16B | 9.54B | 15.89B | 13.14B | 14.55B | 15.39B | 14.13B | 13.56B | 14.34B | 14.92B | 14.22B | 13.74B | 11.21B | 8.68B | 8.26B | 7.4B | 5.52B | 4.54B | 3.55B | 3.19B | 3.02B | 3.24B | 2.18B | 2.92B | 1.81B | 1.61B | 1.03B |
| Operating CF Margin % | 47.47% | 36.27% | 35.26% | 34.36% | 22.48% | 39.25% | 33.63% | 36.83% | 38.63% | 37.44% | 36.6% | 37.5% | 38.98% | 38.26% | 37.02% | 31.48% | 32.37% | 35.5% | 33% | 30.67% | 31.58% | 30.1% | 31.46% | 31.91% | 33.53% | 20.07% | 28.86% | 20.47% | 22.6% | 18.13% |
| Operating CF Growth % | 53.58% | 11.5% | 8.79% | 79.95% | -39.96% | 20.91% | -9.7% | -5.43% | 8.92% | 4.17% | -5.41% | -3.92% | 4.9% | 3.5% | 22.55% | 29.18% | 5.16% | 11.52% | 34.09% | 21.56% | 27.84% | 11.17% | 5.69% | -6.78% | 48.82% | -25.46% | 61.78% | 11.92% | 56.68% | 15.9% |
| Net Income | 17.09B | 12.44B | 10.47B | 8.5B | 6.72B | 13.75B | 10.13B | 11.08B | 3.59B | 9.34B | 8.9B | 9.94B | 10.96B | 10.93B | 9.98B | 8.55B | 6.13B | 5.59B | 5.52B | 4.27B | 3.38B | 2.89B | 2.68B | 2.31B | 2.22B | 2.56B | 6.3B | 1.29B | 813.7M | 821.46M |
| Depreciation & Amortization | 9.29B | 6.17B | 6.14B | 6.11B | 3.12B | 2.92B | 2.97B | 2.92B | 2.79B | 2.45B | 2.51B | 2.86B | 2.91B | 2.93B | 2.92B | 2.8B | 2.27B | 1.98B | 1.48B | 1.13B | 855M | 425M | 234M | 327M | 363M | 346.9M | 390.93M | 375.38M | 328.56M | 264.77M |
| Stock-Based Compensation | 4.81B | 4.67B | 3.97B | 3.55B | 2.61B | 1.84B | 1.59B | 1.65B | 1.61B | 1.35B | 1.04B | 933M | 805M | 755M | 659M | 510M | 436M | 355M | 369M | 207M | 49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -917M | -1.64B | -2.14B | -2.17B | -1.15B | -2.42B | -851M | -1.19B | -847M | -486M | -105M | -548M | -248M | -117M | 9M | 72M | -511M | -395M | -135M | 56M | -40M | 6M | 58M | 90M | 0 | 17.97M | -16.73M | 20.37M | 23.09M | 6.29M |
| Other Non-Cash Items | 3.89B | 667M | 720M | 661M | 220M | -39M | 239M | 157M | 119M | 737M | 330M | 479M | 541M | 324M | 169M | -147M | 106M | 361M | 316M | 523M | 272M | 316M | 0 | 239M | 439M | 272.74M | -6.8B | 72.53M | 273.97M | 129.44M |
| Working Capital Changes | -2.19B | -1.5B | -488M | 513M | -1.99B | -148M | -942M | -70M | 8.13B | 739M | 889M | 673M | -40M | -594M | 9M | -564M | 244M | 365M | -149M | -667M | 24M | -81M | 60M | 60M | 217M | -1.02B | 3.05B | 49.06M | 175.27M | -191.45M |
| Change in Receivables | -2.19B | -653M | -965M | -151M | -874M | 333M | -445M | -82M | 267M | 147M | 226M | 264M | 146M | 385M | 84M | -565M | -219M | 336M | -825M | 244M | 241M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -863M | 221M | 0 | 0 | -88M | 88M | -96M | 57M | -66M | 150M | -28M | 73M | 0 | 0 | -953M | -5.28B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -240M | -608M | -594M | -281M | -733M | -23M | -496M | -102M | -260M | -37M | -13M | 247M | 48M | -541M | -720M | -120M | -360M | -691M | -153M | -345M | 23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -51.85B | -21.71B | -7.36B | -36.48B | 11.22B | -13.1B | 9.84B | 26.56B | -5.63B | -21.49B | -5.15B | -19.05B | -7.54B | -5.96B | -8.38B | -6.08B | -10.32B | -2.6B | -9.08B | -4.97B | -3.36B | -5.75B | -2.55B | 895M | -2.14B | -1.25B | 6.89B | -802.24M | -922.52M | -777.38M |
| Capital Expenditures | -55.66B | -21.21B | -6.87B | -8.7B | -4.51B | -2.13B | -1.56B | -1.66B | -1.74B | -2.02B | -1.19B | -1.39B | -580M | -650M | -648M | -450M | -230M | -529M | -243M | -319M | -236M | -188M | -189M | -291M | -278M | -313.26M | -263.44M | -346.59M | -328.36M | -390.74M |
| CapEx % of Revenue | 82.64% | 36.96% | 12.96% | 17.41% | 10.63% | 5.27% | 4% | 4.2% | 4.36% | 5.36% | 3.21% | 3.64% | 1.52% | 1.75% | 1.75% | 1.26% | 0.86% | 2.28% | 1.08% | 1.77% | 1.64% | 1.59% | 1.86% | 3.07% | 2.87% | 2.88% | 2.6% | 3.93% | 4.6% | 6.87% |
| Acquisitions | 0 | 0 | -63M | -27.72B | -148M | -41M | -124M | -363M | -1.72B | -11.22B | -650M | -6.24B | -3.49B | -3.31B | -4.7B | -1.85B | -5.61B | -1.16B | -7.64B | -5B | -3.95B | -10.66B | -21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.47B | 0 | 0 | 105M | 0 | 0 | 153M | 2M | 140M | -2M | 0 | -43M | -157M | -82.79M | -474.6M | -286.06M | -201.5M | -114.4M |
| Cash from Financing | 40.28B | 1.1B | -10.55B | 7.91B | -29.13B | -10.38B | -6.13B | -42.06B | -9.98B | 9.09B | -9.86B | 9.85B | -4.07B | -8.5B | -6.1B | 516M | 2.66B | -4.42B | 3.28B | -1.14B | 1.53B | 1.88B | -1.32B | -2.45B | -2.46B | -3.81B | -4.18B | -484.71M | -282.85M | -57.12M |
| Debt Issued (Net) | 40.07B | 5.6B | -3.67B | 12.94B | -8.25B | 12.3B | 15.39B | -4.5B | 2.64B | 13.64B | 1.75B | 18.34B | 5.57B | 2.02B | 295M | 1.21B | 3.64B | -1B | 3.61B | 1.66B | 3B | 2.67B | -144M | 9M | -5M | -126K | -5M | 17K | 2.69M | 297M |
| Equity Issued (Net) | 6.2B | -847M | -2.5B | -1.31B | -16.86B | -21.6B | -19.91B | -34.49B | -11.85B | -1.66B | -10.53B | -6.29B | -7.68B | -9.49B | -5.12B | 216M | -118M | -3.21B | -735M | -3.01B | -1.44B | -747M | -1.15B | -2.3B | -2.46B | -3.81B | -4.18B | -484.73M | -285.53M | -354.13M |
| Dividends Paid | -5.79B | -4.74B | -4.39B | -3.67B | -3.46B | -3.06B | -3.07B | -2.93B | -3.14B | -2.63B | -2.54B | -2.25B | -2.18B | -1.43B | -1.21B | -1.06B | -1B | -250M | -49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -206M | -1.5B | -3.24B | -2.5B | -17.34B | -21.6B | -19.91B | -36.64B | -11.85B | -3.84B | -10.53B | -8.09B | -9.81B | -11.02B | -5.86B | -1.16B | -992M | -3.97B | -2.02B | -3.94B | -2.07B | -1.34B | -1.5B | -2.65B | -2.79B | -4.34B | -5.31B | -1.09B | -489.82M | -528.21M |
| Other Financing | -288M | 1.09B | 4M | -55M | -560M | 1.98B | 1.46B | -136M | 2.37B | -258M | 1.46B | 48M | 222M | 403M | -66M | 150M | 148M | 44M | 0 | 213M | -39M | -44M | -31M | -166M | 0 | 126K | 1M | 0 | 0 | 0 |
| Net Change in Cash | 20.5B | 332M | 689M | -11.62B | -8.71B | -7.14B | 16.73B | -1.11B | -164M | 1.63B | -1.56B | 3.95B | 3.16B | -342M | -1.21B | 6.25B | 919M | 733M | 2.04B | -441M | 2.77B | -244M | -599M | 1.64B | -1.35B | -2.98B | 5.64B | 512.03M | 383.52M | 174.42M |
| Free Cash Flow | -23.69B | -394M | 11.81B | 8.47B | 5.03B | 13.75B | 11.57B | 12.89B | 13.65B | 12.11B | 12.37B | 12.95B | 14.34B | 13.57B | 13.1B | 10.76B | 8.45B | 7.73B | 7.16B | 5.2B | 4.3B | 3.36B | 3.01B | 2.73B | 2.96B | 1.87B | 2.66B | 1.46B | 1.29B | 639.76M |
| FCF Margin % | -35.16% | -0.69% | 22.29% | 16.96% | 11.85% | 33.97% | 29.63% | 32.63% | 34.27% | 32.08% | 33.4% | 33.86% | 37.47% | 36.51% | 35.28% | 30.22% | 31.51% | 33.23% | 31.92% | 28.9% | 29.94% | 28.51% | 29.6% | 28.83% | 30.65% | 17.18% | 26.26% | 16.55% | 18% | 11.25% |
| FCF Growth % | -5911.68% | -103.34% | 39.4% | 68.46% | -63.44% | 18.81% | -10.21% | -5.56% | 12.76% | -2.16% | -4.43% | -9.73% | 5.65% | 3.66% | 21.66% | 27.37% | 9.38% | 7.92% | 37.65% | 20.81% | 27.97% | 11.91% | 10.03% | -7.86% | 58.91% | -29.86% | 82.14% | 13.55% | 101.05% | 10.16% |
| FCF per Share | -8.13 | -0.14 | 4.18 | 3.06 | 1.80 | 4.55 | 3.51 | 3.45 | 3.22 | 2.87 | 2.87 | 2.87 | 3.11 | 2.80 | 2.57 | 2.10 | 1.67 | 1.51 | 1.37 | 0.99 | 0.81 | 0.64 | 0.56 | 0.50 | 0.52 | 0.32 | 0.44 | 0.25 | 0.21 | 0.11 |
| FCF Conversion (FCF/Net Income) | 1.87x | 1.67x | 1.78x | 2.02x | 1.42x | 1.16x | 1.30x | 1.31x | 4.29x | 1.49x | 1.52x | 1.44x | 1.36x | 1.30x | 1.38x | 1.31x | 1.41x | 1.48x | 1.34x | 1.29x | 1.34x | 1.23x | 1.19x | 1.31x | 1.46x | 0.85x | 0.46x | 1.40x | 1.98x | 1.25x |
| Interest Paid | 0 | 3.37B | 3.65B | 3.25B | 2.73B | 2.41B | 1.97B | 2.06B | 1.91B | 1.61B | 1.62B | 1.02B | 827M | 781M | 737M | 770M | -652M | 627M | 347M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 4.02B | 3.56B | 3.01B | 2.57B | 3.19B | 3.22B | 2.9B | 1.56B | 1.98B | 2.33B | 3.06B | 2.84B | 2.64B | 2.73B | 2.93B | -2.49B | 2.17B | 1.69B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Aggressive cloud infrastructure spending
According to recent financial disclosures, Oracle's OCF/NI ratio has fluctuated wildly, reaching a high of 3.40 in 2026Q4, which suggests that reported net income significantly understates the cash-generating capacity of the underlying business model during periods of heavy investment and non-cash accounting adjustments.
The wide variance between net income and operating cash flow indicates that GAAP earnings are heavily influenced by non-cash items and working capital swings. Investors should monitor whether this divergence persists as the company scales its cloud infrastructure, as it complicates the assessment of true operational profitability.
As reported in quarterly filings, Oracle's free cash flow has shifted from a positive $3.8 billion in 2024Q3 to a negative $1.9 billion in 2026Q4, reflecting a clear trend of deteriorating cash generation as capital intensity accelerates to support long-term cloud infrastructure expansion.
The transition to negative free cash flow margins suggests that the company is currently in a heavy investment phase that consumes all internally generated cash. This trajectory warrants further investigation into whether the current level of capital expenditure is sustainable without external financing or a significant shift in revenue mix.
Based on the provided data, Oracle's CapEx/Revenue ratio has surged from 12.6% in 2024Q3 to 86.0% in 2026Q4, indicating that the company is aggressively prioritizing infrastructure build-out over immediate cash flow preservation to maintain its competitive position in the cloud market.
This extreme level of capital intensity suggests that Oracle is essentially front-loading the costs of its Gen 2 Cloud Infrastructure. Analysts should interpret this as a strategic commitment to long-term capacity, though it clearly pressures short-term liquidity and limits the company's ability to return cash to shareholders.
Data from recent statements reveals that working capital changes have swung from a positive $875 million in 2024Q3 to a negative $2.2 billion in 2026Q4, suggesting that the company's cash conversion cycle is becoming increasingly sensitive to the timing of large-scale enterprise cloud contract payments.
The inconsistency in working capital movements may indicate shifts in customer payment terms or inventory management related to hardware procurement. Investors should monitor these fluctuations closely, as they appear to be a primary driver of the volatility observed in quarterly operating cash flow figures.
Quick answers to the most common questions about buying ORCL stock.
Oracle Corporation (ORCL) generated $31.98B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Oracle Corporation (ORCL) reported negative free cash flow of $23.69B in 2026, indicating capital requirements exceeded cash from operations.
Oracle Corporation (ORCL) spent $55.66B on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Oracle Corporation (ORCL) returned $5.79B to shareholders via cash dividends and spent $206.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.