Oracle Japan (4716) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales reached ¥63,915 million, up 11.4% year-over-year, with all profit categories hitting record highs for the first quarter.

• Operating income rose to ¥22,194 million, a 20.2% increase year-over-year, with ordinary profit up 19.4% and net profit at ¥15,374 million, up 19.4%.

• Growth was driven by robust demand in both cloud and on-premise license businesses, with expansion in cloud migration and IT investment in Japan.

• Strategic focus included Japan-focused cloud, AI for enterprises, and strengthening partner collaborations.

• Cloud & License segment led growth, with sales rising 13.0% year-over-year in Q1 FY25.

Financial highlights

• Gross profit rose to ¥30,415 million from ¥26,645 million year-over-year.

• Cloud services revenue was ¥13,915 million, up 9.2%, and now 22% of total revenue.

• Cloud Services & License Support sales in Q1 FY25 were ¥41,885 million, up 5.4% year-over-year.

• Cloud License & On Premise License sales surged 48.8% year-over-year in Q1 FY25.

• Basic earnings per share increased to ¥119.99 from ¥100.61 year-over-year.

Outlook and guidance

• Full-year net sales forecasted to grow 5.0–9.0% year-over-year, with EPS projected at ¥445.00–¥460.00.

• Cloud revenue growth expected to accelerate in Q3 and Q4 after normalizing seasonality in Q2.

• Operating margin projected to remain in the low to mid-thirties for the near term.

• No change in previously announced forecast; year-end dividend yet to be determined.