Oracle Corporation Japan (4716): FY2025 Results Summary — Record Results as Cloud Revenue Jumps 34.3%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Oracle Corporation Japan’s fiscal year ends on May 31, and the company labels the year ended May 31, 2026 as “FY26”; this article is filed as FY2025 under this site’s convention, while all labels and figures below follow the source materials. Figures are taken from the company’s English-language supplemental material “4th Quarter, Fiscal Year ended May 2026 (FY26) Business Results” and its English-language “Flash Report for the Fiscal Year Ended May 31, 2026,” both dated June 25, 2026. The company reports on a non-consolidated basis under Japanese GAAP.

Oracle Corporation Japan (4716) posted net sales of 285,073 million yen for the fiscal year ended May 31, 2026, up 8.2% year on year, with operating profit of 89,795 million yen (up 3.4%), ordinary profit of 91,373 million yen (up 4.5%) and profit for the year of 63,537 million yen (up 4.6%). The company states that net sales and all profit items reached record highs for the fiscal year under review. Growth was led by Cloud, where revenue rose 34.3% to 83,184 million yen and accounted for 29.2% of net sales, up from 23.5% a year earlier. For the fiscal year ending May 31, 2027 the company guides to net sales growth of 6.0% to 10.0% and basic earnings per share of 525.00 to 540.00 yen.

Full-Year Results (Non-Consolidated Actual)

Net sales rose 8.2% to 285,073 million yen. Cost of sales increased to 156,738 million yen from 142,123 million yen and selling, general and administrative expenses rose to 38,539 million yen from 34,555 million yen, so operating profit grew a more modest 3.4% to 89,795 million yen and the operating profit margin declined to 31.5% from 33.0%. Ordinary profit of 91,373 million yen (up 4.5%) was helped by non-operating income of 1,578 million yen, including interest income of 1,096 million yen. Profit for the year was 63,537 million yen (up 4.6%), giving basic earnings per share of 495.97 yen against 473.98 yen in the prior year. ROE was 34.5% and ROA 26.7%.

Item	FY26 (May 2026)	FY25 (May 2025)	Change
Net sales	285,073 million yen	263,510 million yen	+8.2%
Operating profit	89,795 million yen	86,832 million yen	+3.4%
Ordinary profit	91,373 million yen	87,454 million yen	+4.5%
Profit for the year	63,537 million yen	60,725 million yen	+4.6%
Basic earnings per share	495.97 yen	473.98 yen	–
Operating profit margin	31.5%	33.0%	–
ROE	34.5%	34.2%	–
ROA	26.7%	26.6%	–

Total assets stood at 368,416 million yen at May 31, 2026 against 316,403 million yen a year earlier, and net assets rose to 204,728 million yen from 163,681 million yen, lifting the ratio of shareholders’ equity to 55.6% from 51.7%. Cash flows from operating activities were 74,707 million yen (up 8,107 million yen year on year), cash used in investing activities was 32,129 million yen and cash used in financing activities was 24,331 million yen, leaving cash and cash equivalents of 84,968 million yen at the end of the period. The number of employees was 2,097 at the end of the fourth quarter, compared with 2,258 a year earlier.

Net Sales by Product Category

Effective from the current fiscal year the company changed the presentation of its revenue breakdown, splitting the reportable segment “Cloud and software” into “Cloud” and “Software,” with “Software” comprising “Software license” and “Software support.” Prior-year figures are restated on the new basis. Cloud revenue grew 34.3% to 83,184 million yen, while Software was broadly flat at 161,297 million yen (up 0.1%) as a 1.1% rise in Software support to 113,678 million yen offset a 2.1% decline in Software license to 47,618 million yen. Hardware fell 3.5% to 15,048 million yen and Services rose 2.6% to 25,543 million yen.

Item	FY26 (May 2026)	Comp.	FY25 (May 2025)	Variance
Cloud	83,184	29.2%	61,962	34.3%
Software license	47,618	16.7%	48,630	-2.1%
Software support	113,678	39.9%	112,438	1.1%
Software	161,297	56.6%	161,068	0.1%
Cloud and software	244,481	85.8%	223,030	9.6%
Hardware	15,048	5.3%	15,590	-3.5%
Services	25,543	9.0%	24,890	2.6%
Total	285,073	100.0%	263,510	8.2%

Operating Income by Segment

Cloud and software operating income rose 8.7% to 93,145 million yen, Hardware operating income was 547 million yen (down 3.8%) and Services operating income was 5,281 million yen (down 9.6%). The Adjustment line, which the company describes as company-wide expenses relating primarily to administration departments that do not belong to any reportable segment, widened to minus 9,179 million yen from minus 5,255 million yen. Among the main operating expense items, royalty expenses increased to 113,991 million yen from 100,350 million yen and human resources expenses to 36,957 million yen from 33,241 million yen; total operating expenses (cost of sales plus SG&A) were 195,278 million yen against 176,678 million yen.

Segment	FY26 Operating Income	FY25 Operating Income	YoY
Cloud and software	93,145	85,673	8.7%
Hardware	547	569	-3.8%
Services	5,281	5,844	-9.6%
Adjustment (company-wide expenses)	-9,179	-5,255	74.7%
Operating income	89,795	86,832	3.4%

FY2027 Forecast (Year Ending May 31, 2027)

The company presents its guidance as a range rather than a single point. For the term from June 1, 2026 to May 31, 2027 it forecasts net sales growth of 6.0% to 10.0% year on year and basic earnings per share of 525.00 to 540.00 yen, based on an estimated effective tax rate of 31.6%. The company notes that it is carefully examining the effects on its business and that the forecast may change for various reasons.

Item	FY2027 Forecast (Entire term)	FY26 (Actual)
Net sales (% change from previous year)	6.0~10.0	+8.2%
Basic earnings per share	525.00~540.00 yen	495.97 yen
Estimated effective tax rate	31.6%	–

Shareholder Returns

For the year ended May 31, 2026 the company declared a year-end dividend of 858.00 yen per share with no interim dividend, comprising a normal dividend of 198 yen and a special dividend of 660 yen. Total dividends amount to 110,080 million yen, equivalent to a dividend payout ratio of 173.0% and a dividend ratio to shareholders’ equity of 59.7%. This compares with a year-end dividend of 190.00 yen per share for the year ended May 31, 2025, totalling 24,375 million yen with a payout ratio of 40.1% and a ratio to shareholders’ equity of 13.7%. The dividend forecast for the year ended May 31, 2026 was revised during the year. The year-end dividend for the year ending May 31, 2027 has yet to be determined. The scheduled date to commence dividend payments is August 10, 2026.

Item	FY26 (May 2026)	FY25 (May 2025)	FY27 (Forecast)
Year-end dividend per share	858.00 yen	190.00 yen	Not determined
Annual dividend per share	858.00 yen	190.00 yen	Not determined
Total amount of dividends	110,080 million yen	24,375 million yen	–
Dividend payout ratio	173.0%	40.1%	–
Dividend ratio to shareholders’ equity	59.7%	13.7%	–

Strategy and Topics

In the year under review the company continued the two key initiatives launched in FY24 — delivering cloud services optimised for the Japanese market and accelerating AI adoption — now in their third year. It cites expansion of Oracle Cloud Infrastructure (OCI) for modernising customers’ mission-critical systems and generative AI adoption, OCI’s registration under ISMAP and its selection as a cloud service for government cloud development at the Digital Agency, the deployment of the first Sovereign Cloud delivered by Japanese partners through “Oracle Alloy,” hybrid and multicloud offerings, and Cloud Applications with built-in AI. In Hardware, the company released the latest generation Oracle Exadata platform, “Oracle Exadata X11M,” in January 2025, optimised for the latest generation AMD EPYC processors. In Services, the number of composite projects from Consulting Services increased steadily, including platform transitions from on-premises environments to OCI.

For the fiscal year ending May 31, 2027 the company has adopted “AI Changes Everything — Empowering Japan with AI. Accelerating with Trust” as its strategic theme. It plans to strengthen the delivery of integrated AI solutions built on Oracle AI Database and OCI, including Oracle Fusion Applications, Oracle NetSuite and industry-specific applications, to enhance data management, security and governance capabilities, and to expand sovereign cloud offerings delivered by Japanese partners leveraging Oracle Alloy, all under its “One Oracle” strategy.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.