Shares of Oracle Corp Japan climbed more than 7% on Friday following the release of record-breaking fiscal first-quarter results, a performance that starkly contrasted with a decline in its U.S. parent company’s stock.
While Oracle Japan celebrated strong financials, U.S.-listed Oracle shares fell more than 3% overnight after the corporation issued a “force majeure” notice related to a project at its New Mexico data center.
The Japanese subsidiary reported that net sales for the quarter ending in August surged 13% year-over-year to 74.86 billion yen, approximately $472 million. Operating profit jumped 22.7% to 25.92 billion yen, and net profit increased 23.2% to 18.25 billion yen. The company confirmed that sales and all profit metrics hit new records for the fiscal first quarter.
Cloud revenue was a primary driver of growth, leaping 31.7% to 25.14 billion yen. This surge raised cloud’s contribution to total sales to 33.6%, up from 28.8% a year prior. Oracle Japan attributed the increased demand to heightened usage of its data centers in Tokyo and Osaka.
Looking ahead, the company stated it plans to expand its sovereign cloud services and bolster AI solutions within Japan. It also maintained its full-year forecast for sales growth between 6% and 10%.
The positive momentum aligns with broader long-term commitments to the region. In 2024, Oracle pledged to invest more than $8 billion in Japanese cloud and AI infrastructure over the next decade. Meanwhile, SoftBank has begun offering sovereign cloud and generative AI services built on Oracle’s technology.
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