IBM vs Oracle

Explore a neutral, factual comparison between International Business Machines Corp. (IBM) and Oracle Corp. This page delves into their distinct business models, assesses their financial performance, and considers their positions within the broader market context. Gain a clear understanding of these technology giants. Educational content, not financial advice.

Explore a neutral, factual comparison between International Business Machines Corp. (IBM) and Oracle Corp. This page delves into their distinct business models, assesses their financial performance, a...

Comparison Snapshot

Key Financial Metrics

IBM

Metric

ORCL

$276.99B

Market Cap

$524.17B

0.03%

Potential Profit

63.12%

Buy

Analyst Rating

Buy

Why It's Moving

IBM Shares Dip Slightly Amid Debate Over Premium Valuation After Stellar Multi-Year Gains.

Stock declined 1.6% in the last 7 days and 1.7% over 30 days, despite 37% yearly surge and strong 2025 performance.
Valuation scores low at 1/6 on key metrics, with intrinsic value estimates around $277-294 versus current levels near $298.
Analysts highlight IBM as a 2026 top pick, citing hybrid cloud, AI dominance, and robust cash flow with 55-year dividend streak.

Sentiment:

⚖️Neutral

Oracle's Stock Surges on Stellar Q2 Earnings, Crushing Expectations with Massive Backlog Growth

Remaining performance obligations exploded 438% to $523 billion, highlighting locked-in future revenue from high-demand cloud deals.
GAAP earnings per share rocketed 91% to $2.10, with non-GAAP EPS also posting strong gains, reflecting operational efficiency and AI tailwinds.
Stock rebounded 2.47% to $178.18 after recent dips, as investors focus on growth trajectory over valuation concerns pegging it as overvalued.

Sentiment:

🐃Bullish

IBM Shares Dip Slightly Amid Debate Over Premium Valuation After Stellar Multi-Year Gains.

Stock declined 1.6% in the last 7 days and 1.7% over 30 days, despite 37% yearly surge and strong 2025 performance.
Valuation scores low at 1/6 on key metrics, with intrinsic value estimates around $277-294 versus current levels near $298.
Analysts highlight IBM as a 2026 top pick, citing hybrid cloud, AI dominance, and robust cash flow with 55-year dividend streak.

Sentiment:

⚖️Neutral

Oracle's Stock Surges on Stellar Q2 Earnings, Crushing Expectations with Massive Backlog Growth

Remaining performance obligations exploded 438% to $523 billion, highlighting locked-in future revenue from high-demand cloud deals.
GAAP earnings per share rocketed 91% to $2.10, with non-GAAP EPS also posting strong gains, reflecting operational efficiency and AI tailwinds.
Stock rebounded 2.47% to $178.18 after recent dips, as investors focus on growth trajectory over valuation concerns pegging it as overvalued.

Sentiment:

🐃Bullish

Investment Analysis

IBM

Pros

IBM delivered superior share price growth of 62.9% over the past year versus the industry's 4%.
IBM trades at a lower forward P/E ratio of 25.11 compared to Oracle's 31.27.
IBM exhibits balanced long-term revenue and net income growth with overall financial stability.

Considerations

IBM faces recent declines in margins and earnings despite long-term consistency.
IBM carries high debt-to-equity ratio posing unfavourable financial risk.
IBM's ROIC stands at 9.2% lagging behind Oracle's 10.9%.

Oracle

ORCL

Pros

Oracle anticipates over 70% cloud infrastructure revenue growth in fiscal 2026.
Oracle boasts strong margins with 70.51% gross and 21.68% net in 2025 alongside 8.38% revenue growth.
Oracle's Oracle 23 AI database positions it uniquely for enterprise AI data platforms with privacy.

Considerations

Oracle exhibits high debt-to-equity ratio indicating significant financial risk.
Oracle experienced longer-term declines in net income and EPS.
Oracle's recent stock price showed sharp decline of 32.82% amid increased volatility.

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