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Oracle Japan
(4716)
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Rating:84Outperform
Price Target:
¥11,571.00
▲(24.82% Upside)
Action:Reiterated
Date:09/28/26
The score is driven primarily by strong financial quality (high profitability, debt-free balance sheet, and robust free cash flow) and a positive earnings update featuring strong cloud and profit growth with ongoing SG&A efficiency. Technicals are supportive with the stock trading above key moving averages and positive momentum indicators. Valuation is helped by a reasonable P/E and very high dividend yield, while risks center on license revenue volatility and some variability in free cash flow growth.
Positive Factors
Cloud and revenue growth
Strong company-wide growth combined with faster cloud expansion indicates durable customer adoption and successful migration from traditional software toward recurring services. A rising cloud mix can improve revenue visibility, deepen customer integration, and support sustained growth over the next several quarters.
Negative Factors
License revenue volatility
License purchases can be deferred until customer requirements accumulate, creating uneven timing in reported revenue. Even with strong underlying demand, this volatility can make quarterly performance less predictable and complicate near-term planning, forecasting, and interpretation of growth trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Cloud and revenue growth
Strong company-wide growth combined with faster cloud expansion indicates durable customer adoption and successful migration from traditional software toward recurring services. A rising cloud mix can improve revenue visibility, deepen customer integration, and support sustained growth over the next several quarters.
Read all positive factors
Oracle Japan (4716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.28T
Dividend Yield8.58%
Average Volume (3M)247.25K
Price to Earnings (P/E)19.1
Beta (1Y)0.35
Revenue Growth10.45%
EPS Growth11.29%
CountryJP
Employees2,097
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)522.68
Shares Outstanding128,313,060
10 Day Avg. Volume263,410
30 Day Avg. Volume247,246
Financial Highlights & Ratios
PEG Ratio3.97
Price to Book (P/B)5.71
Price to Sales (P/S)4.10
P/FCF Ratio16.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥10,000.00Price Target Upside7.87% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)555.35
Revenue Forecast (FY)¥309.03B
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 makes money primarily by selling and operating enterprise IT software and cloud services for organizations in Japan. Key revenue streams typically include: (1) Cloud services and subscriptions: recurring subscription fees for Oracle C...
Oracle Japan Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 22, 2026
Earnings Call Sentiment Positive
The call was strongly positive, characterized by 13% total revenue growth, 31.7% cloud revenue growth, operating income growth of 22.7% and net income growth of 23.2%. Management also highlighted broad industry strength, AI adoption, cloud migrations, SG&A efficiencies and higher consulting profitability. The main negatives were the historical volatility of license revenue, a decline in consulting revenue and the absence of specific second-quarter headcount guidance, but these were outweighed by the broader operating momentum and profitability improvements.Positive Updates
Strong Start to Fiscal Year 2027
Oracle Japan reported broad-based strength across public sector, communications, financial services and manufacturing, with total revenue of JPY 74.861 billion, up 13% year-over-year.
Negative Updates
Historical Volatility in License Revenue
Management noted that license revenue has historically been a volatile business because customers purchase additional licenses when requirements accumulate. The timing of growth between license revenue and cloud revenue may therefore interchange between quarters.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Start to Fiscal Year 2027
Oracle Japan reported broad-based strength across public sector, communications, financial services and manufacturing, with total revenue of JPY 74.861 billion, up 13% year-over-year.
Read all positive updates
Company Guidance
Management said revenue growth “definitely will continue to be strong,” although revenue from licenses and cloud may “sometimes interchange in between quarters.” The “run rate SG&A expense will be lower than the past,” and management said this “definitely will be sustainable,” with the company expected to “more or less maintain similar levels of headcount in the future”; however, there was “no” end of second quarter headcount guidance.Oracle Japan Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 293.66B | 285.07B | 263.51B | 244.54B | 226.91B | 214.69B |
| Gross Profit | 131.79B | 128.34B | 120.70B | 112.72B | 107.39B | 104.62B |
| EBITDA | 96.37B | 91.12B | 88.72B | 81.60B | 76.03B | 75.20B |
| Net Income | 66.98B | 63.54B | 60.73B | 55.60B | 52.01B | 51.18B |
Balance Sheet | ||||||
| Total Assets | 271.19B | 368.42B | 316.40B | 340.16B | 281.01B | 236.87B |
| Cash, Cash Equivalents and Short-Term Investments | 38.71B | 84.97B | 66.62B | 91.90B | 104.53B | 60.14B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 158.29B | 163.69B | 152.72B | 148.36B | 125.16B | 111.51B |
| Stockholders Equity | 112.90B | 204.73B | 163.68B | 191.79B | 155.85B | 125.36B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 72.57B | 64.64B | 79.84B | 66.97B | 52.70B |
| Operating Cash Flow | 0.00 | 74.71B | 66.60B | 80.34B | 67.73B | 53.09B |
| Investing Cash Flow | 0.00 | -32.13B | -1.96B | -72.39B | -743.00M | 99.83B |
| Financing Cash Flow | 0.00 | -24.33B | -89.96B | -20.69B | -22.67B | -146.83B |
Oracle Japan Technical Analysis
Positive
9270.00
Price Trends
9294.14
Positive
8930.04
Positive
9094.38
Positive
Market Momentum
200.58
Negative
64.76
Neutral
71.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Positive. The current price of 9270 is below the 20-day moving average (MA) of 9486.95, below the 50-day MA of 9294.14, and above the 200-day MA of 9094.38, indicating a bullish trend. The MACD of 200.58 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥1.28T | 19.14 | 39.59% | 8.58% | 10.45% | 11.29% | |
84 Outperform | ¥141.99B | 18.60 | ― | 1.29% | 20.38% | 45.30% | |
82 Outperform | ¥83.02B | 17.25 | 30.58% | 3.40% | 15.67% | 23.19% | |
81 Outperform | ¥119.74B | 18.22 | ― | 3.06% | 8.77% | 16.25% | |
80 Outperform | ¥2.26T | 29.39 | 15.84% | 1.77% | 11.68% | 17.73% | |
78 Outperform | ¥220.33B | 17.35 | ― | 3.16% | 9.69% | 13.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4716
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10,005.00
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Oracle Japan Corporate Events
Oracle Japan Q1 FY27 Results Show Double-Digit Growth in Cloud and Software
Sep 24, 2026
Oracle Corporation Japan reported first-quarter results for the fiscal year ending May 2027, posting total net sales of ¥74.9 billion, up 13% year on year, and operating income of ¥25.9 billion, up 22.7%. Growth was driven by the cloud-a...
Oracle Japan Posts Double-Digit Q1 Profit Growth, Keeps Full-Year Forecast Intact
Sep 24, 2026
Oracle Corporation Japan reported strong non-consolidated results for the first quarter of the fiscal year ending May 31, 2027, with net sales rising 13.0% year on year to 74.86 billion yen and operating profit climbing 22.7%. Ordinary profit incr...
Oracle Japan posts double-digit profit growth and maintains full-year outlook
Sep 24, 2026
Oracle Corporation Japan reported strong growth for the first quarter of the fiscal year ending May 2027, with net sales rising 13.0% year on year to ¥74.86 billion and operating profit climbing 22.7% to ¥25.92 billion, driving profit fo...
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.