Is Oracle (ORCL) Stock Halal? Shariah Screen Explained
Is Oracle (ORCL) halal? As of 2026-09-22 it does not pass ZadVest’s Shariah screen. See the business, debt, cash and 5% income tests, with sources. Informational, not certified advice.
Oracle (ORCL) does not pass ZadVest’s Shariah screen as of 2026-09-22. This is an informational software result, not a fatwa, certification or investment advice.
The result as of 2026-09-22
Oracle (ORCL) does not pass ZadVest’s Shariah screen. The result combines three separate tests based on AAOIFI Shari’ah Standard No. 21: what the company does, how much interest-bearing debt and cash it carries, and how much of its income comes from impermissible sources. A company passes only when the business and ratio screens pass and no impermissible-income breach is identified; missing evidence never counts as a pass.
Screening results change as companies file new reports and as prices move. The current result for ORCL is shown live on its Shariah card in the ZadVest app.
Screen 1: business activity
The first screen asks what the company does. AAOIFI Shari’ah Standard No. 21 permits dealing in a company’s shares “if the activity of the corporation is permissible” (clause 3/2), and names interest-based finance, liquor and pork as prohibited objectives. ZadVest reads the company’s industry classification (for Oracle: Technology) and its business description against a published list of prohibited activities.
Neither the classification nor the business description matched a prohibited activity, so the business-activity screen passes.
Screen 2: debt, cash and receivables
The second screen measures how much of the company’s value is tied to interest. Clause 3/4/2 of the AAOIFI standard allows interest-bearing debt up to 30% of market capitalization, and clause 3/4/3 applies the same 30% to interest-bearing cash and deposits. ZadVest also applies a receivables limit, which comes from index-provider practice rather than from an AAOIFI clause. The figures below are as of 2026-07-27.
Interest-bearing debt to market capitalization: 48.5% against a 30% limit — above the limit.
Cash and interest-bearing securities to market capitalization: 9.2% against a 30% limit — within the limit.
Accounts receivable to market capitalization: 3.0% against a 33% limit — within the limit.
Screen 3: impermissible income
The third screen asks what share of income comes from impermissible sources, such as interest earned on cash. Clause 3/4/4 sets the ceiling at 5% of total income. Company filings rarely separate every such amount, so ZadVest publishes a range: a floor of income identified in the filings, and a ceiling that also counts what could not be ruled out. Only a floor above the 5% limit fails a company; a ceiling that cannot be bounded keeps the result provisional.
Identified impermissible income for Oracle: between 1.16% and 1.16% of revenue.
Result of the income screen: within the limit on complete evidence.
Sources and evidence
Financial statement figures come from the company’s filings with the U.S. Securities and Exchange Commission (10-K and 10-Q reports, read through the SEC’s structured XBRL data), with market capitalization from market data. Industry classification and the business description come from a market-data provider.
Excerpts from the standard applied — AAOIFI Shari’ah Standard No. 21, clause 3/4/2: interest-bearing debt “does not exceed 30% of the market capitalization of the corporation, knowingly that raising loans on interest is prohibited whatsoever the amount is.” Clause 3/4/4: prohibited income “does not exceed 5% of the total income of the corporation.”
How each income figure was built for Oracle: interest income reported in SEC filings; no prohibited business line in the company’s activity. An estimate (for example, interest assumed on reported cash) can only widen the upper end of the range; it never lowers a figure found in the filings.
Not certified advice
This is an informational screening result produced by software. It is not a fatwa, not a certification by a Shariah board, and not investment, legal or tax advice. Scholars and screening providers can reach different conclusions on the same company. Consult a qualified scholar before making any investment decision.