OracleBUE:ORCL -5.13%90 ROE % is 42.56% as of May. 2026, which is 25% below its 10-year median of 57.08. GuruFocus rates BUE:ORCL with a GF Score™ of 90/100 and a GF Value™ of ARS89,862.81 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,681 Software companies, Oracle ranks better than 96.16% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Oracle's annualized net income for the quarter that ended in May. 2026 was ARS24,306,202 Mil. Oracle's average Total Stockholders Equity over the quarter that ended in May. 2026 was ARS57,116,961 Mil. Therefore, Oracle's annualized ROE % for the quarter that ended in May. 2026 was 42.56%.
The historical rank and industry rank for Oracle's ROE % or its related term are showing as below:
BUE:ORCL'
s ROE % Range Over the Past 10 Years
Min: 7.16 Med: 57.08 Max: 214.11
Current: 54.92
During the past 13 years, Oracle's highest ROE % was 214.11%. The lowest was 7.16%. And the median was 57.08%.
BUE:ORCL's ROE % is ranked better than 96.16% of 2681
companies
in the Software industry
Industry Median: 4.73
vs BUE:ORCL: 54.92
Oracle (BUE:ORCL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Oracle ROE % Related Terms
Oracle ROE % Historical Data
* Premium members only.
The historical data trend for Oracle's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Oracle's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Oracle ROE % vs Software Industry
For the Software industry and Technology sector, Oracle's ROE % distribution charts can be found below:
* The bar in red indicates where Oracle's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (May. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Oracle (BUE:ORCL) has a ROE % of 42.56% as of May. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Oracle and its competitors. This is 25% below median its historical median of 57.08. Over the past decade, Oracle's ROE % has ranged from 7.16 to 214.11. According to the industry distribution chart, Oracle ranks #103 out of 2681 companies in the Software industry, placing it in the top 3.8%.
Is Oracle's ROE % too high?
Oracle's current ROE % of 42.56% is 25% below median its 10-year median of 57.08. Over the past 10 years, this metric has ranged from a low of 7.16 to a high of 214.11. The Software industry median ROE % is 4.73. Oracle's value of 42.56% is 799.8% above this industry median. Based on the distribution chart, Oracle ranks #103 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Oracle has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Oracle's ROE % compare to PLTR and PANW?
According to the Software industry distribution chart, Oracle ranks #103 out of 2681 companies for ROE %. This places Oracle in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Oracle's value of 42.56% is 799.8% above this benchmark. Historically, Oracle's own ROE % has ranged from 7.16 to 214.11 over the past decade. While the company's 10-year median is 57.08 vs. the industry median of 4.73, Oracle has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.73, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Oracle's current ROE % of 42.56% is 799.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Oracle and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oracle's current ROE % is 42.56%, which is 25% below median its own 10-year median of 57.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oracle stock overvalued right now?
Based on GuruFocus' analysis, Oracle (BUE:ORCL) is currently considered Fairly Valued. The stock's GF Value™ is ARS89,862.81, compared to a current price of ARS81,450.00 — trading 9.4% below its estimated fair value. The current ROE % is 42.56%, which is 25% below median its 10-year median of 57.08 and 799.8% above the Software industry median of 4.73. Oracle's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Oracle (BUE:ORCL), the current ROE % is 42.56% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Oracle (BUE:ORCL) Overvalued in 2026?
Based on GuruFocus' analysis, Oracle stock appears to be undervalued.
The current stock price of ARS81,450.00 is trading 9.4% below its estimated GF Value™ of ARS89,862.81.
GuruFocus considers Oracle to be Fairly Valued.
Key valuation signals for BUE:ORCL:
ROE %: 42.56% (25% below median its 10-year median of 57.08)
GF Value™: ARS89,862.81 vs. price of ARS81,450.00 (9.4% below fair value)
Industry Position: 799.8% above the Software median (#103 of 2681)
No single metric tells the full story. See the BUE:ORCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world's largest companies for high-volume online transaction processing workloads. Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing.
90GF Score
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