--- title: "Is Oracle Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/oracle-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: ORCL exchange: NYSE last_reviewed: 2026-06-15 data_as_of: 2026-05-31 standards_disagree: true authorities_with_position: 4 authority_agreement: split --- # Is Oracle Stock Halal? **Authority consensus:** Halal screening authorities disagree on Oracle Corporation: halal (HalalWallet (AAOIFI), SP Funds (SPUS ETF)); not halal (Musaffa, Zoya). **Verdict: Halal** (Generally permissible) Oracle Corporation (ORCL) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-31) interest-bearing debt is 29.9% of market cap and cash plus interest-bearing securities 6.1% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETF SPUS, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence Oracle sells database software, cloud infrastructure and enterprise applications - permissible activities with no advertising, gambling, alcohol or entertainment revenue lines. If the analysis stopped at what Oracle does, it would screen cleanly. The compliance problem is how Oracle is financed: the company has long used large conventional borrowings to fund share buybacks, acquisitions and, more recently, a capital-intensive AI data-center buildout. Debt-based financial screens - which typically require interest-bearing debt below roughly 30-33% of market capitalization or total assets, depending on the standard - are where Oracle runs into trouble, and small differences between standards (and movements in Oracle's share price) can flip the result. The third-party signals as of June 11, 2026 reflect exactly that borderline-ratio situation: SPUS (S&P Shariah screen, which measures leverage against market value) currently holds Oracle, while HLAL (FTSE Shariah screen, which measures debt against total assets) does not, and both retail AAOIFI screeners are negative - Zoya rates it not Shariah-compliant and Musaffa classifies it as not halal. When a stock passes one institutional screen but fails the AAOIFI-based screeners, the disagreement is usually arithmetic (different debt thresholds and denominators), not a dispute about the business itself. For a Muslim retail investor, the practical reading is cautious: the most widely used retail standards currently fail Oracle on leverage, and its compliance status is hostage to both its borrowing levels and its market value. Oracle also operates a customer-financing program and earns interest income, which would require purification under any approach that permitted the stock. Investors who follow the S&P Shariah methodology specifically have index-level support via SPUS; those following AAOIFI or FTSE standards currently do not. ## Business activity screen Result: Pass Oracle provides enterprise database software, cloud infrastructure (OCI) and business applications. Its 10-K reports revenue in four lines: cloud services and license support (the large majority), cloud license and on-premise license, hardware, and services. Oracle's products - databases, cloud infrastructure and enterprise applications - raise no significant business-screen issues; there is no advertising platform, entertainment content or insurance business in its disclosed revenue lines. The Shariah-relevant items are financial: Oracle offers financing arrangements to customers for license/hardware purchases (financing receivables are disclosed in balance-sheet notes, not as a separate revenue segment - not separately disclosed in filings as revenue), earns interest income on cash, and most importantly carries very large conventional borrowings used to fund buybacks, acquisitions and its cloud-infrastructure buildout, which is the primary reason ratio-based screens flag it. ## Financial ratio screen (AAOIFI) Data as of: 2026-05-31 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 29.9% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 6.1% | < 30% | Pass | | Impermissible income / total revenue | 1.7% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard). | Standard | Debt | Cash & interest securities | Limit / basis | Result | |---|---|---|---|---| | AAOIFI (our standard) | 29.9% | 6.1% | < 30% of market cap | Pass | | Dow Jones Islamic / S&P Shariah threshold | 29.9% | 6.1% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 59.7% | 12.2% | < 33.33% of total assets | Fail | HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://funds.wahedinvest.com/)) - **Zoya**: Zoya's public stock page rates ORCL not Shariah-compliant under its AAOIFI-based screen (checked 2026-06-11). ([source](https://zoya.finance/stocks/orcl)) - **Musaffa**: Musaffa's public stock page classifies ORCL as NOT HALAL under its AAOIFI-based methodology, as of March 2026. ([source](https://musaffa.com/stock/ORCL/)) ## Purification Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures. ## Sources - ORCL latest quarterly filing (balance sheet 2026-05-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Oracle%20Corporation&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Oracle 10-K filings - SEC EDGAR (CIK 0001341439) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001341439&type=10-K) - SPUS holdings (sp-funds.com, table dated 06/11/2026) (https://www.sp-funds.com/spus/) - HLAL fund page with official Holdings link (funds.wahedinvest.com) (https://funds.wahedinvest.com/) - Zoya public compliance page for ORCL (https://zoya.finance/stocks/orcl) - Musaffa public compliance page for ORCL (https://musaffa.com/stock/ORCL/) ## Frequently asked questions ### Is Oracle Corporation (ORCL) stock halal? Yes, under our AAOIFI-based methodology Oracle Corporation passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-05-31). Check the dated ratio table before investing; ratios move with the share price. ### Does Oracle Corporation pass the AAOIFI financial ratio screen? As of 2026-05-31: interest-bearing debt is 29.9% of market cap (limit < 30%); cash plus interest-bearing securities is 6.1% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Oracle Corporation held in halal ETFs like SPUS or HLAL? Yes — as of our last check, Oracle Corporation is held by SPUS. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below. ### Do I need to purify dividends from Oracle Corporation? Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal - [Is AbbVie Stock Halal?](https://www.halalwallet.ca/is-it-halal/abbvie-stock.md) — Halal - [Is Air Products and Chemicals Stock Halal?](https://www.halalwallet.ca/is-it-halal/air-products-and-chemicals-stock.md) — Halal - [Is AppLovin Stock Halal?](https://www.halalwallet.ca/is-it-halal/applovin-stock.md) — Halal - [Is Arista Networks Stock Halal?](https://www.halalwallet.ca/is-it-halal/arista-networks-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md