ORACLE CORPORATION JAPAN

Business Details

Comprises three categories: cloud services (OCI and SaaS), Software License (including on-premise), and Software Support. The segment has a strong track record of adoption in mission-critical enterprise domains, with a hybrid capability enabling bidirectional migration between on-premise and cloud as a key strength. Revenue for FY2026 (ending May 2026) was ¥244,481 million (up 9.6% year on year), with segment operating profit of ¥93,145 million. This is the core segment, accounting for 85.8% of consolidated revenue. The segment name was changed from the previous "Cloud & License" as of this fiscal year.

Recent Overview

Cloud revenue grew 34.3% year on year, driving high growth, with the segment as a whole reaching a record high.

Cloud revenue for FY2026 (ending May 2026) continued its high growth, reaching ¥83,184 million (up 34.3% year on year), with its share of consolidated revenue expanding from 23.5% to 29.2%. Meanwhile, Software License revenue was ¥47,618 million (down 2.1% year on year), reflecting the emerging impact of the shift to cloud. Software Support revenue was stable at ¥113,678 million (up 1.1% year on year). Segment profit before adjustment reached ¥98,975 million, but due to an increase in corporate expenses (adjustment amount of ¥9,179 million), operating profit was ¥89,795 million. The segment name was changed to "Cloud and Software" as of this fiscal year.

Key Products

Growth Drivers

• Expanding demand for cloud services (OCI and SaaS): continued high growth of 34.3% year on year
• Creation of medium- to long-term demand from government and municipal customers through Government Cloud adoption
• Accelerating lift-and-shift migration of existing on-premise customers to Oracle Fusion Cloud Applications
• Strengthened provision of generative AI and AI agent services for enterprises (GPU environments, AI-oriented data platforms, etc.)
• Expanding deployment of sovereign cloud and sovereign AI utilizing Oracle Alloy
• Demand creation for small and medium-sized enterprises through strengthened partner alliances

Risks

• Cost pressure on cost of revenue from royalties and outsourcing expenses associated with cloud service expansion
• Temporary changes in revenue structure due to accelerated migration from on-premise Software License to cloud
• Dependence on parent company Oracle Corporation's product, pricing, and royalty policies
• Intensifying competition with rival cloud vendors (AWS, Microsoft Azure, Google Cloud, etc.)
• Foreign exchange risk (impact of foreign-currency-denominated expenses related to royalty payments)
• Pressure on segment profit from increased corporate expenses (adjustment amount for FY2026 (ending May 2026) of ¥9,179 million, up ¥3,924 million year on year)