Oracle Japan (4716) AI Stock Analysis

• Market Cap: ¥1.58T
• Dividend Yield: 1.37%
• Average Volume (3M): 207.33K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.26
• Revenue Growth: 8.11%
• EPS Growth: 5.23%
• Country: JP
• Employees: 2,257
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 233.59
• Shares Outstanding: 128,310,970
• 10 Day Avg. Volume: 146,730
• 30 Day Avg. Volume: 207,330
• PEG Ratio: 3.89
• Price to Book (P/B): 13.22
• Price to Sales (P/S): 8.21
• P/FCF Ratio: 33.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥15,000.00
• Price Target Upside: 11.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥14,006.00 ▲(4.29% Upside)

The score is primarily supported by strong financial quality (high margins, steady growth, and a debt-free balance sheet) and a constructive earnings update (record results, rapid cloud growth, maintained guidance). These positives are meaningfully tempered by weak technicals (price below key moving averages with negative momentum) and a valuation that is not especially cheap at a ~26.5 P/E.

Positive Factors

Cloud-driven recurring revenue

Rapid cloud revenue growth to 29% of sales signals a durable shift toward subscription and consumption models. This raises revenue visibility, increases customer lifetime value via recurring billing and infrastructure consumption, and supports long-term scalable growth and cross-sell of higher‑margin services.

Conservative, debt-free balance sheet

No reported debt materially reduces financial risk and interest‑rate sensitivity. This conservatism preserves capacity to fund cloud investments, refresh skills, pursue partnerships, or return capital without relying on external financing, improving resilience through industry cycles.

High and consistent profitability

Sustained high margins and strong ROE reflect durable pricing power, efficient cost structure and enterprise software economics. These structural profitability levels support internal reinvestment, healthy free cash flow conversion and capacity to maintain product development and customer support over time.

Negative Factors

License revenue secular decline risk

A structural migration from perpetual licenses to cloud subscriptions can reduce upfront revenue and alter recognition timing. If cloud adoption or pricing doesn't fully offset lost license dollars, revenue growth and near‑term margins may be pressured until consumption scales further.

Operating cash flow softness and coverage

Although free cash flow closely tracks net income, weaker operating cash flow and lower asset coverage introduce variability in cash generation. Persistent OCF softness could constrain reinvestment, delay strategic initiatives, or reduce flexibility on returns despite strong reported profits.

Modest margin drift over time

Gradual margin erosion suggests rising costs, reinvestment needs or product‑mix shifts toward lower‑margin cloud/service offerings. If unchecked, margin decline will reduce free cash flow and ROE, forcing either higher prices, efficiency gains, or slower reinvestment to restore historical profitability.

Oracle Japan Business Overview & Revenue Model

Company Description

Oracle Corporation Japan engages in the development and sale of software and hardware products and solutions in Japan. The company operates through three segments: Cloud and License, Hardware Systems, and Services. It sells software solutions, such as relational database management software, middleware, and applications; hardware, including servers, storage devices, and network devices for use in building and operating IT environments, such as cloud computing environments; and cloud services through Internet and other networks, as well as provides software license update rights and technical support. The company also offers technical support, maintenance, and repair of hardware products; and consulting, customer support, and education services. In addition, it provides Oracle database, Java, Linux, and MySQL software solutions; and Oracle cloud infrastructure, which include compute, storage, networking, analysis, application development, cloud database, content management, integration, cloud marketplace and management, and governance services, as well as security, identity, and compliance solutions. Further, the company offers cloud applications, such as enterprise resource planning, enterprise performance management, supply chain and manufacturing, human capital management, and advertising and customer experience cloud application solutions, as well as NetSuite and on-premise application products and solutions; and marketing, sales, and services. It serves automotive, communications, construction and engineering, consumer goods, education and research, financial services, food and beverage, healthcare, technology, hospitality, industrial manufacturing, life sciences, media and entertainment, public sector, retail, and utilities sectors. The company was founded in 1985 and is headquartered in Tokyo, Japan. Oracle Corporation Japan is a subsidiary of Oracle Japan Holding Inc.

How the Company Makes Money

Oracle Japan generates revenue primarily through the sale of software licenses, cloud services, and hardware products. The company's revenue streams include subscription fees for its cloud services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Additionally, Oracle Japan earns from the sale of on-premises software licenses and associated support services, which provide ongoing technical support and software updates. Hardware sales, particularly engineered systems and storage products, also contribute to its revenue. Significant partnerships with other technology firms and systems integrators help expand its reach and enhance its service offerings, further contributing to its financial performance.

Oracle Japan Financial Statement Overview

Summary

Oracle Japan exhibits outstanding financial health across all key metrics. The company shows robust revenue growth, high profitability, and a very strong balance sheet with no debt. Its cash flow generation is efficient, supporting strategic investments and shareholder returns. The overall stability and growth trajectory suggest strong operational capabilities and resilience in the software application industry.

Income Statement

Oracle Japan has demonstrated consistent growth in revenue and profitability. The gross profit margin for the latest period is 46.44%, showing strong pricing power and cost management. Net profit margin at 22.73% is robust, highlighting effective control on expenses. Revenue has grown by 7.77% year-over-year, indicating a healthy expansion trajectory. EBIT and EBITDA margins are at 32.64% and 33.18% respectively, reflecting strong operational performance.

Balance Sheet

The balance sheet is extremely strong with a solid equity position and no debt, resulting in a debt-to-equity ratio of 0. Return on Equity (ROE) is impressive at 28.98%, reflecting high profitability relative to shareholder equity. The equity ratio stands at 56.38%, indicating strong financial stability and low leverage, which reduces financial risk.

Cash Flow

Cash flow performance is strong with free cash flow growing by 19.24% year-over-year. The operating cash flow to net income ratio is 1.44, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also high at 1.44, suggesting effective capital expenditure management and surplus cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	265.87B	263.51B	244.54B	226.91B	214.69B	208.52B
Gross Profit	120.58B	121.39B	113.55B	108.29B	105.55B	101.76B
EBITDA	87.49B	88.10B	81.13B	75.72B	74.87B	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	148.37B	125.16B	111.52B	114.00B
Stockholders Equity	154.15B	163.68B	191.79B	155.85B	125.35B	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

• Technical Analysis Sentiment: Negative
• Last Price: 13430.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 12968.50, above the 50-day MA of 13367.10, and below the 200-day MA of 15427.87, indicating a bearish trend. The MACD of -371.85 indicates Positive momentum. The RSI at 17.00 is Positive, neither overbought nor oversold. The STOCH value of 2.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9759	77 Outperform	¥249.76B	21.50	―	2.49%	9.10%	14.67%
4684	76 Outperform	¥2.36T	30.57	15.18%	1.51%	10.76%	13.65%
6947	72 Outperform	¥112.49B	19.27	―	2.03%	3.64%	51.48%
4716	71 Outperform	¥1.58T	25.81	41.04%	1.37%	8.11%	5.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3994	58 Neutral	¥287.76B	164.96	-19.16%	―	19.57%	-16.67%
4776	―	¥123.78B	19.50	―	1.02%	26.47%	142.77%

Oracle Japan Corporate Events

Oracle Japan Posts Modest Profit Growth on Higher Sales, Keeps Full-Year Outlook Unchanged

Oracle Japan reported non-consolidated interim results for the six months to November 30, 2025, with net sales rising 7.5% year on year to ¥134.7 billion and operating profit edging up 1.8% to ¥42.7 billion, indicating continued top-line growth but a slowdown in profit expansion compared with the prior year. Ordinary profit and net profit both increased 1.9%, lifting basic earnings per share to ¥233.59, while total assets remained broadly flat at ¥315.6 billion and shareholders’ equity rose, pushing the equity ratio up to 54.2%. The company maintained its full-year guidance, targeting net sales growth of 6.0–10.0% and basic earnings per share of ¥490–¥505, and left its year-end dividend forecast undecided after having paid a ¥190 dividend in the previous fiscal year, signaling a stance of steady growth with some caution on profit momentum and capital returns as market and tax assumptions are factored into its outlook.

The most recent analyst rating on (JP:4716) stock is a Hold with a Yen15000.00 price target. To see the full list of analyst forecasts on Oracle Japan stock, see the JP:4716 Stock Forecast page.

Oracle Japan Posts Modest Profit Growth in First-Half FY2026, Keeps Full-Year Outlook Intact

Oracle Japan reported non-consolidated net sales of ¥134.7 billion for the first half of its fiscal year ending May 31, 2026, up 7.5% year on year, with operating profit rising 1.8% to ¥42.7 billion and interim net profit inching up 1.9% to ¥29.9 billion, reflecting steady but moderating profit growth compared with the prior year. Shareholders’ equity increased, lifting the equity ratio to 54.2%, while the company maintained its full-year guidance of 6.0–10.0% sales growth and basic earnings per share of ¥490–¥505, and left the year-end dividend forecast undecided, signaling confidence in continued expansion but some caution on capital returns pending further performance visibility.

The most recent analyst rating on (JP:4716) stock is a Hold with a Yen15000.00 price target. To see the full list of analyst forecasts on Oracle Japan stock, see the JP:4716 Stock Forecast page.