Oracle Corporation Japan (JP:4716)
:4716
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Oracle Japan
(4716)
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Rating:75Outperform
Price Target:
¥10,856.00
▼(-19.17% Downside)
Action:Reiterated
Date:04/23/26
The score is driven primarily by strong financial performance (high margins, steady growth, and a debt-free balance sheet). Valuation is supportive with a reasonable P/E and ~2% yield, while technicals temper the outlook due to longer-term trend weakness (below the 100/200-day averages) despite improving near-term momentum.
Positive Factors
High, durable profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost structure versus peers. This supports strong return on equity and the ability to fund reinvestment or shareholder returns, making core profitability resilient over a multi-month horizon.
Negative Factors
Operating cash flow weakness
A decline in operating cash flow versus prior year signals cash conversion volatility that can constrain investment or dividend flexibility. If sustained, weaker cash conversion raises the risk that earnings are less fungible for capex, M&A, or payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
High, durable profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost structure versus peers. This supports strong return on equity and the ability to fund reinvestment or shareholder returns, making core profitability resilient over a multi-month horizon.
Read all positive factors
Oracle Japan (4716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.10T
Dividend Yield1.37%
Average Volume (3M)207.33K
Price to Earnings (P/E)17.1
Beta (1Y)0.19
Revenue Growth6.42%
EPS Growth4.23%
CountryJP
Employees2,257
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)469.63
Shares Outstanding128,312,580
10 Day Avg. Volume146,730
30 Day Avg. Volume207,330
Financial Highlights & Ratios
PEG Ratio3.89
Price to Book (P/B)13.22
Price to Sales (P/S)8.21
P/FCF Ratio33.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)543.33
Revenue Forecast (FY)¥304.35B
Oracle Japan Business Overview & Revenue Model
Company Description
Oracle Corporation Japan, a subsidiary of Oracle Japan Holding Inc. founded in 1985 and headquartered in Tokyo, specializes in the development and distribution of a broad spectrum of software and hardware solutions throughout Japan. The company or...
How the Company Makes Money
Oracle Japan primarily generates revenue by selling and supporting Oracle-branded enterprise IT products and services in Japan. Key revenue streams typically include: (1) Software and cloud services: recurring revenue from cloud subscriptions (suc...
Oracle Japan Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q4-2026)
| Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive growth and execution story: record revenues, very strong cloud infrastructure expansion (including large AI contract wins and rapid capacity delivery), robust cash generation, and high RPO visibility underpin an optimistic long-term outlook. Near-term headwinds include gross margin compression from the aggressive data center ramp, very large near-term CapEx needs and related funding plans, and supply-chain cost risks. Overall, management argues these investments are funded by committed customer demand and will drive attractive long-term returns.Positive Updates
Record Quarterly and Annual Revenue
Q4 revenue of $19.2B, up 21% YoY in USD; fiscal year revenue surpassed $67B for the first time.
Negative Updates
Gross Margin Compression from Infrastructure Ramp
Full-year gross margin stepped down ~5 percentage points as infrastructure build-out ramped; fiscal 2027 gross margins expected to step down due to timing and mix from data center projects.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 revenue of $19.2B, up 21% YoY in USD; fiscal year revenue surpassed $67B for the first time.
Read all positive updates
Company Guidance
Oracle guided to strong near- and full-year growth: Q1 FY2027 revenue growth of 27–29% in US dollars (cloud revenue +58–64%) and non‑GAAP EPS $1.72–$1.76 (up 17–20% in USD); full‑year FY2027 revenue +34% in constant currency with non‑GAAP EPS $8.05 (up ~18% CC, excluding one‑time investment gains). They expect net cash outlay for CapEx of about $70 billion in FY2027 (with ~$20–25 billion of customer prepayments/timing impacts that make reported CapEx higher), plan to raise roughly $40 billion of debt and equity in FY2027 (including a $20 billion ATM) and do not expect additional debt in CY2026, and reconfirmed long‑term targets of +31% revenue CAGR and +28% EPS CAGR through FY2030. Management warned gross margins will step down near‑term as data centers ramp, expects operating costs to be slightly negative year‑over‑year in dollars, and pointed to record RPO of $638 billion (up 363%) with ~12% recognizable in the next 12 months and ~34% between 13–36 months, driving expected acceleration in the second half of the year.Oracle Japan Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 265.87B | 263.51B | 244.54B | 226.91B | 214.69B | 208.52B |
| Gross Profit | 120.58B | 120.70B | 112.72B | 107.39B | 104.62B | 100.75B |
| EBITDA | 87.95B | 88.72B | 81.60B | 76.03B | 75.20B | 72.95B |
| Net Income | 60.16B | 60.73B | 55.60B | 52.01B | 51.18B | 49.17B |
Balance Sheet | ||||||
| Total Assets | 297.62B | 316.40B | 340.16B | 281.01B | 236.87B | 334.00B |
| Cash, Cash Equivalents and Short-Term Investments | 52.48B | 66.62B | 91.90B | 104.53B | 60.14B | 53.96B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 143.47B | 152.72B | 148.36B | 125.16B | 111.51B | 114.00B |
| Stockholders Equity | 154.15B | 163.68B | 191.79B | 155.85B | 125.36B | 220.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 64.64B | 79.84B | 66.97B | 52.70B | 65.05B |
| Operating Cash Flow | 0.00 | 66.60B | 80.34B | 67.73B | 53.09B | 65.15B |
| Investing Cash Flow | 0.00 | -1.96B | -72.39B | -743.00M | 99.83B | -50.12B |
| Financing Cash Flow | 0.00 | -89.96B | -20.69B | -22.67B | -146.83B | -21.11B |
Oracle Japan Technical Analysis
Negative
13430.00
Price Trends
8798.83
Negative
9058.58
Negative
11488.46
Negative
Market Momentum
-63.40
Positive
45.51
Neutral
18.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Negative. The current price of 13430 is above the 20-day moving average (MA) of 8874.97, above the 50-day MA of 8798.83, and above the 200-day MA of 11488.46, indicating a bearish trend. The MACD of -63.40 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4716.
Oracle Japan Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥106.30B | 14.61 | ― | 1.02% | 23.44% | 74.38% | |
79 Outperform | ¥1.61T | 21.96 | 15.18% | 1.51% | 11.52% | 16.82% | |
77 Outperform | ¥57.65B | 11.81 | 31.71% | 1.68% | 17.64% | 47.00% | |
75 Outperform | ¥1.10T | 17.13 | 38.51% | 1.37% | 6.42% | 4.23% | |
75 Outperform | ¥176.61B | 14.28 | ― | 2.49% | 9.30% | 10.95% | |
74 Outperform | ¥78.74B | 12.26 | ― | 2.59% | 7.79% | 9.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4716
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Oracle Japan Corporate Events
Oracle Japan Posts Higher Sales but Lower Margins as It Refines Cloud and Software Disclosure
Mar 24, 2026
Oracle Japan reported supplemental results for the third quarter of fiscal 2026, showing continued top-line growth but pressure on profitability. Total net sales for the first three quarters increased year on year, driven primarily by steady expan...
Oracle Japan Posts Solid Q3 Growth and Affirms Upbeat Full-Year Outlook
Mar 24, 2026
Oracle Corporation Japan reported steady growth for the third quarter of its fiscal year ending May 31, 2026, with net sales rising 7.1% year on year to ¥206.7 billion and operating profit up 4.4% to ¥67.0 billion. Net profit increased 4...
Oracle Japan Posts Solid Q3 FY2026 Growth and Keeps Full-Year Outlook Intact
Mar 24, 2026
Oracle Japan reported non-consolidated net sales of ¥206.67 billion for the first nine months of the fiscal year ending May 31, 2026, up 7.1% year on year, with operating profit rising 4.4% to ¥67.02 billion and net income increasing 4.6...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.