● Covered by 1 source · 1 reportMedium impact1 positive
Oracle Japan reports record Q1 sales and profits, driven by cloud growth
Key points
- Oracle Japan's Q1 net sales rose 13% to 74.86 billion yen.
- Operating profit increased 22.7%, net profit climbed 23.2%.
- Cloud revenue grew 31.7% to 25.14 billion yen.
- Company plans to expand sovereign cloud and AI solutions in Japan.
Record Fiscal First Quarter Performance
Oracle Japan announced record fiscal first-quarter sales and profits for the period of June to August. Net sales reached 74.86 billion yen ($472 million), marking a 13% increase from the previous year. Operating profit grew 22.7% to 25.92 billion yen, and net profit rose 23.2% to 18.25 billion yen. These figures represent new highs for a fiscal first quarter for the company.
Cloud Business Drives Growth
The primary driver of Oracle Japan's strong performance was its cloud business. Cloud revenue increased by 31.7% year-on-year, reaching 25.14 billion yen. This growth elevated cloud's share of total sales to 33.6%, up from 28.8% a year prior. The company noted that demand for cloud infrastructure fueled usage of its Tokyo and Osaka data centers.
Strategic Expansion in Japan
Oracle Japan plans to expand its sovereign cloud offerings and strengthen its AI solutions within the Japanese market. This aligns with Oracle's broader commitment to invest over $8 billion in cloud and AI infrastructure in Japan over the next decade. SoftBank has already begun deploying sovereign cloud and generative AI services utilizing Oracle technology.
Market Reaction and Outlook
Following the announcement, shares of Oracle Corp Japan surged over 7% in Tokyo. This positive market reaction occurred despite a more than 3% drop in U.S.-listed Oracle shares, which was attributed to a "force majeure" notice related to its New Mexico data center project. Oracle Japan maintained its full-year outlook, projecting sales growth of 6-10%.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Oracle Japan's fiscal first-quarter net sales increased 13% to 74.86 billion yen, with operating profit up 22.7% and net profit up 23.2%, setting new records for the quarter. This growth was primarily driven by a 31.7% rise in cloud revenue, contrasting with a decline in its U.S. parent's shares.