ORACLE CORPORATION JAPAN
4716・Standard Market・Information & Communication
Business
Oracle Corporation Japan is an enterprise IT company established in 1985 and listed on the Tokyo Stock Exchange in 2000, with US-based Oracle Corporation as its effective parent company. Based on distributorship agreements with Oracle International Corporation and Nihon Oracle Information Systems LLC, the company provides the Japanese market with software licenses for databases, middleware, ERP and other products, cloud services centered on OCI (Oracle Cloud Infrastructure), hardware such as servers and storage, and implementation support and operations management services. Its major customers range widely from large corporations, government agencies, and local municipalities to small and medium-sized enterprises, with NEC Corporation being its largest customer, accounting for 12.2% of sales.
Business Model
The company operates under a sales agency model in which it pays a royalty, calculated as a fixed percentage of sales, to its parent company group. Cloud Services & License Support, which accounts for 66.2% of revenue, maintains a high contract renewal rate and forms a stable, recurring revenue base. This is complemented by Cloud License (18.5%), Services (9.4%), and Hardware (5.9%), with the proportion of subscription-based revenue expanding year by year in line with the shift to cloud. The company does not conduct its own research and development, instead focusing on sales and service provision that leverages its parent company's product capabilities, thereby achieving a high operating margin.
Company Strengths
From FY2021 to FY2025, revenue expanded continuously from ¥208,523 million to ¥263,510 million, and operating income grew from ¥70,904 million to ¥86,832 million. In FY2025 (ending May 2025), revenue, operating income, ordinary income, and net income all reached record highs. The operating margin remained at a high level of 33.0%.
In FY2025 (ending May 2025), cloud services revenue continued to grow strongly, reaching ¥61,962 million (up 28.4% year on year). License support remained a stable revenue source supported by a high contract renewal rate, at ¥112,438 million (up 2.7% year on year). Combined, Cloud Services & License Support reached ¥174,400 million (up 10.5% year on year), driving overall company growth.
OCI complies with the government information system security assessment program (ISMAP) and was selected for the Digital Agency's Government Cloud in October 2022. Medium- to long-term demand creation is expected as government agencies, local governments, and other public entities advance digitalization, serving as a differentiating factor from competitors.
ENVALITH's Perspective
Performance Trend
Revenue increased 32.8% over five periods, from ¥214,691 million in FY2022 (ending May 2022) to ¥285,073 million in FY2026 (ending May 2026), maintaining a stable growth trajectory. The FY2026 (ending May 2026) revenue growth rate of 8.2% accelerated from 7.8% in the prior period. On the other hand, operating margin declined from 33.0% in FY2025 (ending May 2025) to 31.5% in FY2026 (ending May 2026). The increase in cost of sales and SG&A expenses accompanying cloud business expansion is putting pressure on margins. As an external factor, solid domestic IT investment demand and accelerating DX have supported top-line growth. Operating CF expanded steadily to ¥74,707 million (up ¥8,107 million year on year), and cash at period-end increased to ¥84,968 million.
Growth Strategy
Under the new policy "AI Changes Everything," the company is accelerating core system transformation through OCI, AI, and sovereign cloud offerings
Promoting lift-and-shift of existing on-premise customers to Oracle Fusion Cloud Applications. Usage of the Tokyo and Osaka data centers is steadily increasing, and cloud revenue continued its high growth, reaching ¥83,184 million (up 34.3% year on year). This is expected to remain the key growth driver in FY2027 (ending May 2027) as well.
Leveraging OCI, which has already been adopted for the Digital Agency's Government Cloud, to support digitalization and operational efficiency through generative AI utilization at government agencies and local municipalities. Compliance with ISMAP has established a barrier to entry in the public sector, and the company is building a medium- to long-term demand base.
Deploying Japan's first sovereign cloud, provided by a Japanese company (partner), using Oracle Alloy. Addressing data sovereignty and operational sovereignty requirements in response to geopolitical and economic security risks, with expansion planned in FY2027 (ending May 2027).
Under the new policy "AI Changes Everything" for FY2027 (ending May 2027), the company provides AI solutions integrating Oracle AI Database, OCI, Oracle Fusion Applications, and NetSuite. It is strengthening the provision of GPU environments, generative AI services, AI agent services, and AI-oriented data platforms to support improvements in customer productivity and competitiveness.
Promoting stronger collaboration with cloud partners and capturing Cloud ERP demand among small and mid-sized enterprises using NetSuite. The company is steadily capturing demand from businesses undergoing organizational restructuring that adopt cloud services, and plans to continue strengthening this effort in FY2027 (ending May 2027).
Last updated: July 17, 2026