The Tip Desk

Oracle Japan Records Higher Annual Revenue

Annual revenue, operating profit and net income each reached record levels.

Oracle Corporation Japan (TSE-4716) reported annual revenue of 285,073 million yen for the fiscal year ended May 31, 2026, up 8.2% from a year earlier. Operating profit increased 3.4% to 89,795 million yen, ordinary profit rose 4.5% to 91,373 million yen, and net income grew 4.6% to 63,537 million yen. All four measures reached record full-year levels.

Cloud and Software revenue rose 9.6% to 244,481 million yen, and operating profit from the segment increased 8.7% to 93,145 million yen. Cloud revenue climbed 34.3% to 83,184 million yen, compared with 0.1% growth in software revenue to 161,297 million yen. The segment includes software licences, software support and cloud services.

Cloud operations focused on moving existing customers onto Oracle Fusion Cloud Applications and seeking new customers. Oracle Cloud Infrastructure continued to receive inquiries from customers focused on performance, security and cost effectiveness, and usage at its Tokyo and Osaka data centres increased.

Oracle Japan’s cloud technology could be used in customers’ on-premises environments, alongside its role as a core part of the business. Its priority measures continued to centre on providing cloud services for Japan and advancing AI for customers during the 2026 fiscal year.

Oracle Japan plans to strengthen integrated AI offerings based on Oracle AI Database and Oracle Cloud Infrastructure. The planned offering includes Oracle Fusion Applications, Oracle NetSuite and industry-specific applications, alongside expanded data-management, security and governance functions intended to support customers handling important operations and data.

Oracle Japan also plans to expand sovereign-cloud deployments supplied by Japanese partner companies using Oracle Alloy. It will promote sovereign-cloud and sovereign-AI services designed to address requirements for data sovereignty and operational sovereignty amid geopolitical and economic-security risks.

Cloud and Software accounts for a high share of Oracle Japan revenue and makes a high contribution to profit. A deterioration in sales in those areas could affect financial results and financial condition.

Oracle Japan relies on indirect sales through partner companies to meet a broad range of customer needs, and indirect sales represented a large share of revenue during the fiscal year. Maintaining stable, trusted relationships with those partners is materially important to its future.