Oracle Japan (4716) Q4 2025 earnings summary

Executive summary

• Q4 and full-year results exceeded guidance, with double-digit revenue growth and accelerating momentum in cloud transition.

• Net sales reached ¥263,510 million, up 7.8% year-over-year, with all profit categories hitting record highs.

• Operating profit rose 8.8% to ¥86,832 million, ordinary profit increased 8.9% to ¥87,454 million, and profit for the year grew 9.2% to ¥60,725 million.

• Growth driven by strong demand for cloud migration, digital transformation, and robust IT investment in Japan.

• Remaining performance obligations (RPO) reached $138 billion, up 41% year-over-year, reflecting strong future revenue visibility.

Financial highlights

• Q4 total revenue was $15.9 billion, up 11% year-over-year.

• Full-year revenue was $57.4 billion, up 9%; cloud services and license support revenue was $44 billion, up 12%.

• Cloud & License segment sales rose 8.8% to ¥223,030 million, driven by cloud migration and strong license renewals.

• Operating profit for FY25 reached ¥86,832 million, an 8.8% increase year-over-year.

• Gross profit increased to ¥121,387 million from ¥113,545 million year-over-year.

Outlook and guidance

• FY2026 revenue guidance raised to over $67 billion, up 16% year-over-year.

• FY2026 net sales forecasted to grow 6.0–10.0% year-over-year.

• Cloud revenue expected to grow over 40% in FY2026; cloud infrastructure revenue expected to grow over 70%.

• Basic earnings per share projected at ¥490.00–¥505.00 for FY2026.

• Strategic focus on expanding cloud, AI, and sovereign cloud offerings, with continued investment in modernization and digitalization for Japanese enterprises and government.