Is ORCL (Oracle Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ORCL is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (24.34% vs ≤33% threshold), interest income ratio (1.01% vs ≤5% threshold), and cash & securities ratio (2.62% vs ≤33% threshold).

Oracle Corporation is a global giant in database software and cloud engineering, widely known for its Oracle Database products and enterprise applications. The company has aggressively pivoted towards cloud computing with its Oracle Cloud Infrastructure (OCI) and SaaS offerings like NetSuite and Oracle Fusion ERP, which help businesses manage everything from supply chains to human resources. This massive footprint makes it a foundational stock in the software infrastructure sector. For Muslim investors, Oracle presents a clean profile, currently classified as Halal under AAOIFI standards because it passes all financial and business activity screens . The company's core operations are fully permissible, focusing on technology services rather than any prohibited industries, and its financial health aligns with Shariah requirements. This means you can confidently include ORCL in your portfolio without the need for purification of dividends based on business activity. Financially, Oracle demonstrates discipline that appeals to Shariah-conscious investors, with interest-bearing debt sitting at 24.3% of its market capitalization, safely under the 33% threshold. Additionally, the company generates very little non-compliant income from cash deposits, with interest income accounting for only 1.01% of total revenue. This low figure suggests that management is focused on reinvesting capital into the business rather than hoarding cash in interest-bearing accounts . Going forward, investors should continue to monitor Oracle's debt levels, as large tech acquisitions can sometimes spike leverage ratios temporarily . However, given its strong cash flow from recurring software licenses and cloud subscriptions, Oracle remains a robust and compliant option for those seeking exposure to the technology sector. Oracle Corporation operates in the Technology sector under the Software - Infrastructure industry and is headquartered in Austin, TX, US. The company is led by CEO Michael D. Sicilia and employs approximately 159,000 people.

ORCL was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ORCL passed 4 of these 4 screens.

Although ORCL passes all shariah screens, it does earn $578.0M in interest income (1.01% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.01 to purify the income.

ORCL was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.