Oracle Stock vs Competition: Who Wins?
Oracle‘s stock has notably underperformed many peers over the past year, prompting questions about its competitive stance amid the AI and cloud boom. While a closer look reveals strong operating profitability and steady revenue growth, alongside a moderate valuation, its significantly negative free cash flow margin presents a key challenge. This substantial cash outlay for AI infrastructure could limit sustained upside against hyperscale rivals.
- ORCL’s 31.9% operating margin, while solid for software, lags MSFT’s 46.7%, reflecting MSFT’s high-margin cloud/AI services and cost control.
- ORCL’s 11.1% LTM revenue growth, driven by OCI/AI, outpaces AMZN, CRM, IBM, but lags MSFT/GOOGL’s strong cloud/AI adoption.
- ORCL’s stock is down 2.4% in 1 year, underperforming peers. Its 30.6 P/E reflects investor caution amid AI bubble fears.
Here’s how Oracle stacks up across size, valuation, and profitability versus key peers.
| ORCL | MSFT | AMZN | CRM | GOOGL | IBM | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 471.4 | 3,197.5 | 2,545.4 | 201.3 | 4,085.1 | 286.4 |
| Revenue ($ Bil) | 61.0 | 305.5 | 670.0 | 40.3 | 385.5 | 65.4 |
| PE Ratio | 30.6 | 26.8 | 36.0 | 27.9 | 32.9 | 36.2 |
| LTM Revenue Growth | 11.1% | 16.7% | 10.9% | 8.4% | 13.4% | 4.5% |
| LTM Operating Margin | 31.9% | 46.7% | 11.4% | 22.0% | 32.2% | 17.7% |
| LTM FCF Margin | -21.6% | 25.3% | 2.0% | 32.0% | 19.1% | 18.1% |
| 12M Market Return | -2.4% | 4.5% | 2.0% | -37.8% | 68.9% | 21.8% |
For more details on Oracle, read Buy or Sell ORCL Stock. Below we compare ORCL’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ORCL | 11.1% | 8.4% | 6.0% | 17.7% | |
| MSFT | 16.7% | 14.9% | 15.7% | 6.9% | |
| AMZN | 10.9% | – | 11.0% | 11.8% | 9.4% |
| CRM | 8.4% | 8.7% | 11.2% | 18.3% | |
| GOOGL | 13.4% | – | 13.9% | 8.7% | 9.8% |
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ORCL | 31.9% | 31.5% | 30.3% | 27.6% | |
| MSFT | 46.7% | 45.6% | 44.6% | 41.8% | |
| AMZN | 11.4% | – | 10.8% | 6.4% | 2.4% |
| CRM | 22.0% | 20.2% | 17.2% | 5.9% | |
| GOOGL | 32.2% | – | 32.1% | 27.4% | 26.5% |
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ORCL | 30.6 | 43.7 | 43.7 | 33.4 | |
| MSFT | 26.8 | 35.3 | 35.5 | 38.7 | |
| AMZN | 36.0 | – | 40.8 | 74.3 | -568.7 |
| CRM | 27.9 | 41.1 | 78.7 | 1255.0 | |
| GOOGL | 32.9 | – | 38.5 | 32.4 | 30.4 |
| IBM | 36.2 | – | 45.3 | 26.7 | 90.0 |
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