Oracle Japan shares surged more than 7% on Friday following the announcement of record fiscal first-quarter sales and profits, driven by robust growth in its cloud business. This positive performance in Tokyo contrasted sharply with a more than 3% decline in U.S.-listed Oracle shares overnight, which was attributed to the company's issuance of a 'force majeure' notice related to its New Mexico data center project [1].
For the June-August quarter, Oracle Japan reported net sales of 74.86 billion yen ($472 million), marking a 13% increase from the previous year. Operating profit rose 22.7% to 25.92 billion yen, while net profit climbed 23.2% to 18.25 billion yen. All profit metrics and net sales reached record highs for a fiscal first quarter, according to the company [1].
Cloud revenue was a standout, jumping 31.7% year on year to 25.14 billion yen and increasing its share of total sales to 33.6%, up from 28.8% a year earlier. The company attributed this growth to strong demand for cloud infrastructure, which boosted usage of its Tokyo and Osaka data centers. Oracle Japan also announced plans to expand its sovereign cloud offering and strengthen its AI solutions in the Japanese market [1].
Despite the strong quarterly results, Oracle Japan maintained its full-year outlook for sales growth of 6-10%. The company highlighted its ongoing commitment to cloud and AI infrastructure in Japan, referencing Oracle's 2024 pledge to invest more than $8 billion over a decade. Additionally, SoftBank has launched sovereign cloud and generative AI services utilizing Oracle technology [1].
CONCLUSION
Oracle Japan's record-setting first-quarter results and strong cloud growth drove a significant share price rally, bucking the negative trend seen in its U.S. parent. The company's continued investment in cloud and AI infrastructure, along with a stable outlook, underscores its positive momentum in the Japanese market.