SAKURA internet Inc.
3778・Prime Market・Information & Communication
Business
SAKURA internet Inc. is a domestically rooted cloud and internet infrastructure company established in 1999. Based on its self-operated data centers (including Ishikari), it provides an end-to-end lineup encompassing the public cloud "Sakura no Cloud," GPU infrastructure for generative AI "Koukaryoku PHY/Sakura ONE," shared hosting "Sakura no Rental Server," Physical Infrastructure Services such as housing and dedicated servers, and Other Services including system integration. Its customer base spans individuals and SMEs through to corporate, education, and public sector clients, and its formal adoption for the Government Cloud is accelerating expansion into the government and enterprise segments. Revenue for FY2026 (ending March 2026) reached ¥35,301 million (up 12.4% year on year), marking a new record high.
Business Model
The core revenue source is a service-based model that provides self-owned and operated data center facilities (servers, GPUs, networks, power supplies, etc.) to multiple customers. In addition to recurring billing revenue from Cloud Services (¥15,324 million), GPU Infrastructure Service (¥8,144 million), and Physical Infrastructure Services (¥3,056 million), Other Services (¥8,776 million), which includes contracted work and system integration for government agencies, accounts for approximately 25% of sales. This is a capital-intensive model that expands earnings by making capital investments in advance and then improving utilization rates, with subsidies (cloud program) also being utilized as a source of investment funds.
Company Strengths
"Sakura no Cloud" has been officially adopted into the Digital Agency's Government Cloud, meaning a third-party institution has certified that it meets the high reliability and security standards required in the public sector. This has served as a catalyst for expanding sales to the National Institute of Health Crisis Management to ¥4,575 million (13.0% of net sales), with a growing track record of winning large-scale public sector projects.
Having received certification under the Ministry of Economy, Trade and Industry's Cloud Program Supply Security Plan, the company has carried out large-scale capital investment utilizing subsidies (compressed-entry amount of ¥14,311 million). Total capital expenditure for FY2026 (ending March 2026) reached ¥22,553 million, and the company has a track record as a domestic operator that has proactively built out the latest GPU infrastructure, including NVIDIA H200 and Blackwell B200.
Since its founding in 1999, the company has operated its own data centers over the long term, including the Ishikari Data Center (began operations in 2011), and has built a broad customer base spanning individuals, corporations, education, and the public sector. Its vertically integrated structure, which enables one-stop provision of Cloud Services, GPU Infrastructure Service, Physical Infrastructure Services, and system integration within the group, constitutes a competitive advantage that is difficult to replicate in a short period of time.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, from ¥20,019 million in FY2022 (ended March 2022) to ¥35,301 million in FY2026 (ending March 2026). However, on the profit side, results fell sharply in FY2026 from the record highs achieved in FY2025 (ended March 2025) (operating profit of ¥4,145 million and net income of ¥2,937 million), resulting in an operating loss of ¥403 million and net income of ¥216 million. The main causes were a sharp increase in depreciation expenses associated with GPU-related capital expenditure (up approximately ¥2,970 million year on year) and increased investment in human resources. As an external factor, expanding demand for generative AI supported revenue growth, while soaring costs for GPU equipment and data centers pushed up cost of sales. The company forecasts a recovery to revenue of ¥45,000 million and operating profit of ¥1,500 million in FY2027 (ending March 2027).
Growth Strategy
Aiming to become the de facto generative AI infrastructure provider through large-scale investment in GPU infrastructure and Government Cloud accreditation
Began offering the H200 plan and NVIDIA Blackwell B200 on the bare-metal GPU service "Koukaryoku PHY." GPU Infrastructure Service revenue expanded to ¥8,144 million in FY2026 (ending March 2026) (up 20.3% year on year). In FY2027 (ending March 2027), the company will prioritize improving the stable utilization rate of existing GPU resources, and will consider additional investment based on market trends.
Following formal accreditation for the Government Cloud, the company is expanding its sales channels in the public and enterprise sectors through collaboration and strategic alliances with partners. Driven by large-scale projects for government agencies and others, Other Services revenue achieved high growth, reaching ¥8,776 million in FY2026 (ending March 2026) (up 19.6% year on year).
Promoting investment in human capital to strengthen feature development and sales promotion for Sakura Cloud and Sakura Rental Server. Salaries and allowances increased to ¥2,936 million in FY2026 (ending March 2026) (up 34.5% year on year). The company is restructuring its organization to link development and sales, and is building a system to respond promptly to customer needs through the use of AI.
Following certification under the Ministry of Economy, Trade and Industry's cloud program supply capacity assurance plan, the company is utilizing national subsidies. In FY2026 (ending March 2026), income from national subsidies, etc. amounted to ¥14,311 million (recorded as extraordinary income, with an equivalent amount processed as a deduction from fixed assets). Expenditure on acquisition of property, plant and equipment reached ¥36,336 million, with progress in infrastructure development including container-type data centers.
Last updated: July 19, 2026