Oracle Japan Jumps 7% as Cloud Growth Drives Record First Quarter

Oracle Japan reported net sales of 74.86 billion yen ($472 million) for the June-August quarter, up 13% from the same period a year earlier. Operating profit climbed 22.7% to 25.92 billion yen, while net profit increased 23.2% to 18.25 billion yen. The company said both revenue and all profit measures reached record highs for a fiscal first quarter.

Cloud services were the main growth driver. Cloud revenue jumped 31.7% year on year to 25.14 billion yen, significantly outpacing overall sales growth. The segment accounted for 33.6% of total revenue, up from 28.8% a year earlier, reflecting the growing importance of cloud services to Oracle Japan’s business mix.

The company attributed the increase partly to strong demand for cloud infrastructure, which has boosted utilization of its Tokyo and Osaka data centers. Oracle Japan plans to continue expanding its sovereign cloud offering while strengthening AI-related solutions for domestic customers. These investments come as Japanese companies increase spending on cloud computing and generative AI infrastructure.

Despite the strong quarterly results, Oracle Japan maintained its existing full-year forecast for sales growth of between 6% and 10%. The unchanged guidance suggests the company is retaining a measured outlook even as first-quarter growth exceeds the upper end of its full-year range.

Oracle has already committed substantial capital to expanding its presence in Japan. In 2024, the U.S. technology group announced plans to invest more than $8 billion in cloud computing and AI infrastructure in the country over a 10-year period. SoftBank has also introduced sovereign cloud and generative AI services using Oracle technology, expanding the company’s role in Japan’s AI ecosystem.

The strong performance in Tokyo contrasted sharply with Oracle’s U.S.-listed shares, which fell more than 3% overnight. The U.S. parent declined after issuing a “force majeure” notice related to its New Mexico data center project, creating separate concerns around its infrastructure expansion.

For Oracle Japan, however, the latest quarter shows continued momentum in cloud adoption and improving profitability. With cloud revenue now contributing roughly one-third of total sales and demand supporting greater use of its domestic data centers, the Japanese business is becoming increasingly tied to the country’s expanding investment in cloud and AI infrastructure.