How Oracle Stock Returned $158B To Shareholders

Core Insights - Oracle Corporation has returned a total of $158 billion to shareholders over the past decade, ranking 9th in corporate history for capital returns [2] - The capital return consists of $35 billion in dividends and $123 billion in share buybacks, which is approximately 31.5% of the company's current market capitalization [3] - Oracle's strategy focuses on enhancing earnings per share through aggressive stock repurchases, supported by strong cash flows from its transition to cloud-based services [4] Financial Performance - Oracle's revenue growth stands at 11.1% for the last twelve months (LTM) and an average of 9.8% over the last three years [10] - The company has a free cash flow margin of nearly -21.6% and an operating margin of 31.9% for LTM [10] - The stock trades at a price-to-earnings (P/E) multiple of 32.5 [10] Market Position - While Oracle's capital returns are significant, they are lower than those of industry leaders like Apple and Microsoft, which have returned $847 billion and $368 billion respectively [4] - The total capital returned to shareholders as a percentage of market cap appears inversely proportional to growth potential for reinvestments, with companies like Meta and Microsoft showing higher growth despite lower capital returns [7] Risk Considerations - Oracle has experienced significant stock declines in the past, including a 77% drop during the Dot-Com crash and over 40% during the Global Financial Crisis [8]