Quick Verdict
ZakatInvest classifies Oracle (ORCL) as doubtful. Enterprise software, cloud infrastructure, hardware and consulting can serve legitimate uses. Oracle's FY2026 interest-bearing debt is 49.49% of total assets, however—above the examined 33% limits—and public categories cannot isolate revenue by customer, healthcare, government, financial activity, AI deployment or end use.
This preserves the useful general-purpose technology analysis without treating every workload, customer or contract as equally permissible.
Business Activity
Oracle offers enterprise applications, database and infrastructure technologies through cloud, on-premise and hybrid deployments. In fiscal 2026 it reported $33.989 billion of cloud revenue, $24.541 billion of software revenue, $3.084 billion of hardware revenue and $5.743 billion of services revenue.
The original healthcare concern remains important following the Cerner/Oracle Health expansion. The company's tools can support patient care, but health data, privacy, consent, accuracy, safety and accountability require evidence from actual deployments. The same applies to government, law-enforcement, defense, finance, marketing and other customers whose activity is not separated in public revenue data.
AI, Data and Cloud Infrastructure
Oracle's applications and infrastructure incorporate AI technologies. Automation can improve reliability and efficiency, while human oversight, bias, security, privacy, surveillance, error, access control, remedies and customer purpose remain material questions. Cloud and AI data centers also create ongoing energy, water, hardware, supply-chain, labor, export-control and environmental questions; claims about technology being beneficial do not settle these outcomes.
Current Financial Screening
The calculation below uses the official filing at the SEC. All inputs use the fiscal year ended May 31, 2026.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-05-31; calculated 2026-07-13.
129,541 / 261,759
31,894 / 261,759
41,674 / 261,759
780 / 67,357
- Financial
- Fails
- Overall
- Fails
Debt is 49.49%, above the examined 33.333% limit. Liquidity is 12.18%, receivables plus cash is 15.92%, and disclosed interest income is 1.16%, but the debt failure controls the result.
- Financial
- Fails
- Overall
- Fails
Debt is 49.49%, above the 33.33% total-assets limit. Liquidity and receivables-plus-cash pass, but the debt screen fails.
- Financial
- Fails
- Overall
- Fails
Conservatively defined interest-bearing debt is 49.49% of total assets, above the 33% financial-ratio limit. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Oracle provides enterprise applications, database and infrastructure software, cloud services, hardware and professional services. General-purpose IT tools can serve legitimate operations, health, education, communications and other beneficial uses, but their ultimate deployment and customer activity are not uniform.
Limitation: Public revenue categories cannot reproduce a screened allocation by customer, industry, government, healthcare, financial activity, contract, cloud workload, AI use, data practice or prohibited category.
Purification
Disclosed interest income is 1.16% of fiscal-year revenue, but screened operating revenue is unavailable. That ratio is evidence for the displayed income screen, not a complete fixed purification prescription.
Inputs, assumptions and primary sources
- Interest-bearing debt uses 7,199 current plus 122,342 non-current notes payable and other borrowings.
- Cash uses 31,289 and identifiable interest-bearing securities use 605 marketable securities, described as primarily time deposits. Cash and equivalents include bank deposits, time deposits and money-market funds.
- Trade receivables use the reported 10,385 net balance. Revenue and disclosed interest income use the fiscal year ended May 31, 2026.
- The filing reports 780 interest income within broader non-operating income; it is used for the financial income ratio, while no complete purification instruction is inferred without screened operating revenue.
- Cloud and software, hardware and services revenue are reported, but not by customer, product use, healthcare, government, financial service, contract, AI deployment or other screened activity.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
What the Numbers Show
Notes payable and other borrowings total $129.541 billion, or 49.49% of $261.759 billion in assets. Cash plus marketable securities is $31.894 billion, or 12.18% of assets, while cash plus trade receivables is $41.674 billion, or 15.92%.
The filing separately reports $780 million of interest income, or 1.16% of fiscal-year revenue. It does not disclose a screened operating-revenue numerator, so that ratio is not converted into a fixed purification instruction. Historical average-market-cap methods remain not calculated rather than substituted with a current price.
Debt, Acquisitions and Ongoing Review
The previous page correctly identified acquisitions and financial structures as relevant, but not their present scale. Oracle's substantial notes, borrowings, investments, cloud buildout and acquisitions require a chosen methodology. A passing general-purpose software description cannot override a failed financial threshold.
Bottom Line
ORCL remains doubtful in ZakatInvest's canonical classification. General-purpose enterprise technology has potentially permissible elements, but the current debt screen fails and public reporting cannot substantiate an exact screened business-revenue or purification calculation. Reassess with a newer filing and better customer-, contract-, AI-, healthcare- and data-use evidence.
This is a screening classification, not a fatwa or investment recommendation. For a binding personal ruling, apply your chosen methodology with a qualified Sharia adviser.
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