Oracle Japan (4716) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 saw net sales of JPY 285,073,000,000, up 8.2% year-over-year, with all profit items reaching record highs and strong business expansion across cloud and mission-critical workloads.

• Operating income rose 3.4% to JPY 89,795,000,000, and net profit increased 4.6% to JPY 63,537,000,000, driven by strong cloud adoption, AI initiatives, and modernization efforts.

• Oracle Cloud Infrastructure and strategic partnerships for Sovereign Cloud services were key growth drivers, with notable customer examples including SoftBank, DENSO, and DNP.

• AI adoption is accelerating infrastructure and data platform investments, supporting new opportunities in cloud and database services.

• Strategic focus for FY2027 includes expanding integrated AI solutions, sovereign cloud offerings, and supporting government digitalization.

Financial highlights

• Total revenue for FY 2026 was JPY 285,073,000,000, up 8.2% year-over-year, with cloud revenue reaching JPY 83,184,000,000, up 34.3% and now 29.2% of total revenues.

• Operating income was JPY 89,795,000,000, up 3.4%; net income was JPY 63,537,000,000, up 4.6%; gross profit increased to JPY 128,335,000,000.

• Software segment sales (license and support) totaled JPY 47,618,000,000, with support up 1.1% and license down 2.1%; hardware sales were JPY 15,048,000,000, down 3.5%; services revenue was JPY 25,543,000,000, up 2.6%.

• Cash and cash equivalents at year-end rose to JPY 84,968,000,000, and operating cash flow was JPY 74,707,000,000.

• Dividend payout for the year totaled JPY 858 per share, including a special dividend of JPY 660.

Outlook and guidance

• FY2027 guidance projects 6–10% revenue growth and basic EPS of JPY 525–540, with a strategic theme focused on AI and sovereign cloud solutions.

• Revenue breakdowns have been updated to align with new performance management categories, emphasizing cloud and software growth.

• Entering FY2027 with strong momentum, a healthy pipeline, and continued cloud adoption.