Key Highlights

  • Oracle's 6.50% Series D mandatory convertible preferred depositary shares (NYSE:ORCL.PRD) traded at USD 39.96 on November 13, 2026, down 2.23%, against a 52-week range of USD 36.31 to USD 70.49.
  • Each depositary share carries a USD 50 Liquidation preference and a cumulative Dividend of USD 3.25 a year, paid quarterly through January 15, 2029, which equals a current Yield of about 8.1% at today's price.
  • The shares convert mandatorily on January 15, 2029 into between 0.2499 and 0.3124 Oracle common shares each, depending on the common stock price at that time.
  • Oracle issued 100 million depositary shares, raising about USD 5 billion in February 2026, as part of a heavy funding program for its AI cloud buildout.

How the Security Works

The Oracle preferred (NYSE:ORCL.PRD) is not a traditional fixed income preferred. It is a mandatory convertible, which means every depositary share becomes Oracle common stock on January 15, 2029. If Oracle's common price is at or below about USD 160 then, each depositary share converts into the maximum 0.3124 common shares. Above a threshold near USD 200, it converts into the minimum 0.2499 shares, and between the two the holder receives shares worth about USD 50. In practice, below USD 160 the preferred moves almost one for one with 0.3124 times the common price, plus the value of the remaining dividends. At USD 39.96, the price is consistent with Oracle common trading in the high USD 120s, on our estimate, which places the conversion well below the initial reference price. Dividends are paid on January 15, April 15, July 15 and October 15, in cash, common stock or a mix, when declared by the board.

Oracle's Business and Balance Sheet

The underlying Credit and Equity story is Oracle's. In its fiscal first quarter of 2027, reported on September 10, 2026, Revenue reached about USD 19.3 billion, cloud infrastructure revenue grew about 121%, and remaining performance obligations, or contracted future revenue, reached about USD 664 billion. The same quarter showed negative free Cash Flow because of heavy Data Center spending. To fund that build, Oracle sold a USD 25 billion Debt package in early February 2026 alongside this preferred and planned USD 45 billion to USD 50 billion of debt and equity raising during 2026. The screen data for this line reflects Oracle's common stock figures, including a trailing price to Earnings ratio of 18.50 and a 47.68% change in earnings per share. The Investment question is whether the contracted Backlog turns into cash flow fast enough to support the debt load.

Who the Preferred Suits and What to Watch

For investors who want exposure to Oracle with more income, the preferred offers a yield of about 8.1% against a much smaller dividend on the common stock, in exchange for capped upside above roughly USD 200 a share at conversion. Downside is similar to the common below USD 160, cushioned only by the dividends. Because dividends are cumulative, any unpaid amount would accrue, though Oracle has strong capacity to pay and can settle in shares. Liquidity is thinner than the common, with about 38,000 depositary shares traded on November 13, so large orders can move the price. For holders of the Oracle preferred (NYSE:ORCL.PRD), the key markers are Oracle's fiscal second-quarter results in December, progress converting the backlog into revenue, Capital spending and debt levels, and the January 15, 2027 dividend declaration.

Where Things Stand

The Oracle preferred (NYSE:ORCL.PRD) trades at USD 39.96, about 20% below its USD 50 liquidation value, offering about 8.1% current yield and conversion into Oracle common in January 2029. Its value tracks Oracle shares closely below USD 160. Oracle's backlog conversion and debt are the key drivers.