Oracle Corporation

Liquidity and core cash generation are strong (TTM operating cash flow 21.5 billion dollars), yet TTM free cash flow is negative 5.9 billion dollars due to a step‑function capex ramp to 27.4 billion dollars TTM.

Gross debt was about 91.3 billion dollars at August 31, 2025, against 10.4 billion dollars of cash and 0.6 billion dollars of marketable securities. Ratings agencies affirmed investment‑grade but moved outlooks to negative, citing leverage and prolonged negative FCF during the AI build‑out.

Oracle’s scale, recurring software base and access to capital markets mitigate distress risk, but leverage and capex intensity lower our score.