Oracle Japan (4716) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY26 reached ¥66,275 million, with growth driven by robust cloud services and digital transformation initiatives, including AI and government digitalization.

• Operating income was ¥21,128 million, down 4.8% year-over-year, and net income was ¥14,805 million, down 3.7%.

• Opened Japan Operations Center to accelerate AI and sovereign cloud adoption among Japanese organizations.

• Segment reporting was updated to separate "Cloud" and "Software" for greater clarity.

• Expanded customer base across public sector, manufacturing, financials, and IT, with notable case studies and government digitalization initiatives.

Financial highlights

• Total revenue reached ¥66,275 million, up 3.7% year-over-year, marking a record high for Q1.

• Cloud segment sales grew 37.2% year-over-year to ¥19,097 million, now accounting for 29% of total revenue.

• Software license sales declined 27.2% year-over-year to ¥9,132 million.

• Software support sales increased 1.2% year-over-year to ¥28,308 million.

• Operating income was ¥21,128 million, down 4.8%, and net income was ¥14,805 million, down 3.7% year-over-year.

Outlook and guidance

• Maintains full-year guidance for revenue and EPS as previously communicated, with net sales forecasted to grow 6.0–10.0% year-over-year and basic EPS forecast at ¥490.00–¥505.00.

• Expects continued strong momentum in cloud revenues and a rebound in software license business for the remainder of the year.

• Oracle Alloy contributions to cloud revenue will begin to appear at the end of FY26, with significant acceleration expected in FY27.

• Forward-looking statements are based on current assumptions and may differ due to various risks.

• No change to previously announced guidance.