Motley Fool favors Oracle over Intuit for 2026 if its AI-infrastructure bet pays off: cloud-infrastructure revenue more than doubled in the latest quarter, and backlog topped $600 billion. Negative free cash flow, significant debt and reliance on OpenAI remain risks.
For FY 2026, Oracle reported nearly $67.4 billion in revenue, up 17.4%, and about $17.1 billion in net income; Intuit posted nearly $21.4 billion in revenue, up about 13.9%, and close to $4.6 billion in net income. The article's valuation table puts Intuit lower on forward P/E (12.0x vs. 16.9x) and price-to-sales (3.5x vs. 5.5x). The figures are from Financial Modeling Prep and may differ from other providers.
Intuit's July 2026 debt-to-equity ratio was about 0.4x and free cash flow reached $8.6 billion; Oracle's May ratio was nearly 3.7x, with negative $23.7 billion in free cash flow amid data-center spending. The article says stock-based compensation—about 23.3% of Intuit's operating cash flow—is added back as a noncash expense, inflating reported cash generation. Intuit also faces AI disruption and seasonality, with much of its revenue tied to the U.S. tax season from November through April. Oracle faces privacy concerns, a $115 million settlement related to data-broker activities, and reliance on sole-source suppliers for critical hardware.
