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Oracle Corporation Japan (JP:4716)
:4716
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Oracle Japan (4716) AI Stock Analysis

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JP:4716

Oracle Japan

(4716)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥9,169.00
▼(-31.73% Downside)
Action:Reiterated
Date:06/26/26
The score is driven primarily by strong financial performance (durable profitability, debt-free balance sheet, and robust cash generation). This is partially offset by weak technical signals, with the stock trading below key moving averages and showing negative momentum. Valuation is supportive with a moderate P/E and a ~2.43% dividend yield.
Positive Factors
Debt-free balance sheet
Zero reported debt is a durable financial advantage: it lowers bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and supports steady shareholder returns during downturns. Over 2–6 months this enhances resilience versus leveraged peers.
Negative Factors
Modest margin drift
Gradual margin erosion suggests rising cost or shifting revenue mix (e.g., lower-margin cloud services vs licenses). If structural, this can compress long-term profitability and reduce the cushion for reinvestment or distributions over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero reported debt is a durable financial advantage: it lowers bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and supports steady shareholder returns during downturns. Over 2–6 months this enhances resilience versus leveraged peers.
Read all positive factors

Oracle Japan (4716) vs. iShares MSCI Japan ETF (EWJ)

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 primarily generates revenue by selling and supporting Oracle-branded enterprise IT products and services in Japan. Key revenue streams typically include: (1) Software and cloud services: recurring revenue from cloud subscriptions (suc...

Oracle Japan Earnings Call Summary

Earnings Call Date:Jun 25, 2026
(Q4-2026)
|
% Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive growth and execution story: record revenues, very strong cloud infrastructure expansion (including large AI contract wins and rapid capacity delivery), robust cash generation, and high RPO visibility underpin an optimistic long-term outlook. Near-term headwinds include gross margin compression from the aggressive data center ramp, very large near-term CapEx needs and related funding plans, and supply-chain cost risks. Overall, management argues these investments are funded by committed customer demand and will drive attractive long-term returns.
Positive Updates
Record Quarterly and Annual Revenue
Q4 revenue of $19.2B, up 21% YoY in USD; fiscal year revenue surpassed $67B for the first time.
Negative Updates
Gross Margin Compression from Infrastructure Ramp
Full-year gross margin stepped down ~5 percentage points as infrastructure build-out ramped; fiscal 2027 gross margins expected to step down due to timing and mix from data center projects.
Read all updates
Q4-2026 Updates
Negative
Record Quarterly and Annual Revenue
Q4 revenue of $19.2B, up 21% YoY in USD; fiscal year revenue surpassed $67B for the first time.
Read all positive updates
Company Guidance
Oracle guided to strong near- and full-year growth: Q1 FY2027 revenue growth of 27–29% in US dollars (cloud revenue +58–64%) and non‑GAAP EPS $1.72–$1.76 (up 17–20% in USD); full‑year FY2027 revenue +34% in constant currency with non‑GAAP EPS $8.05 (up ~18% CC, excluding one‑time investment gains). They expect net cash outlay for CapEx of about $70 billion in FY2027 (with ~$20–25 billion of customer prepayments/timing impacts that make reported CapEx higher), plan to raise roughly $40 billion of debt and equity in FY2027 (including a $20 billion ATM) and do not expect additional debt in CY2026, and reconfirmed long‑term targets of +31% revenue CAGR and +28% EPS CAGR through FY2030. Management warned gross margins will step down near‑term as data centers ramp, expects operating costs to be slightly negative year‑over‑year in dollars, and pointed to record RPO of $638 billion (up 363%) with ~12% recognizable in the next 12 months and ~34% between 13–36 months, driving expected acceleration in the second half of the year.

Oracle Japan Financial Statement Overview

Summary
Strong fundamentals: steady revenue expansion (FY2021–FY2026) with very high operating profitability and stable net margins. Balance sheet is low-risk with zero debt and attractive historical ROE, while cash flow is consistently strong with high cash conversion. Main risks are modest margin softening versus earlier years and some year-to-year variability in free cash flow growth.
Income Statement
90
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
BreakdownMay 2026May 2025May 2024May 2023May 2022
Income Statement
Total Revenue285.07B263.51B244.54B226.91B214.69B
Gross Profit128.34B120.70B112.72B107.39B104.62B
EBITDA91.12B88.72B81.60B76.03B75.20B
Net Income63.54B60.73B55.60B52.01B51.18B
Balance Sheet
Total Assets368.42B316.40B340.16B281.01B236.87B
Cash, Cash Equivalents and Short-Term Investments84.97B66.62B91.90B104.53B60.14B
Total Debt0.000.000.000.000.00
Total Liabilities163.69B152.72B148.36B125.16B111.51B
Stockholders Equity204.73B163.68B191.79B155.85B125.36B
Cash Flow
Free Cash Flow72.57B64.64B79.84B66.97B52.70B
Operating Cash Flow74.71B66.60B80.34B67.73B53.09B
Investing Cash Flow-32.13B-1.96B-72.39B-743.00M99.83B
Financing Cash Flow-24.33B-89.96B-20.69B-22.67B-146.83B

Oracle Japan Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13430.00
Price Trends
50DMA
8714.45
Positive
100DMA
8858.11
Negative
200DMA
11153.49
Negative
Market Momentum
MACD
-85.12
Negative
RSI
53.21
Neutral
STOCH
83.00
Negative
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 13430 is above the 20-day moving average (MA) of 8550.40, above the 50-day MA of 8714.45, and above the 200-day MA of 11153.49, indicating a neutral trend. The MACD of -85.12 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4716.

Oracle Japan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥116.21B15.321.02%23.44%74.38%
79
Outperform
¥1.71T22.9315.18%1.51%11.52%16.82%
77
Outperform
¥65.92B13.3031.71%1.68%17.64%47.00%
75
Outperform
¥186.83B15.262.49%9.30%10.99%
74
Outperform
¥85.54B13.102.59%7.79%9.06%
73
Outperform
¥1.12T17.4338.51%1.37%8.18%4.64%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4716
Oracle Japan
8,746.00
-8,019.48
-47.83%
JP:4684
OBIC Co
3,996.00
-1,463.31
-26.80%
JP:4828
Business Engineering Corporation
1,099.00
126.06
12.96%
JP:4432
WingArc1st Inc.
2,478.00
-1,402.23
-36.14%
JP:4776
Cybozu, Inc.
2,533.00
-1,185.16
-31.87%
JP:9759
NSD Co., Ltd.
2,577.00
-820.59
-24.15%

Oracle Japan Corporate Events

Oracle Japan Lifts FY2026 Sales and Profit, Sharpens Focus on Cloud Transparency
Jun 25, 2026
Oracle Corporation Japan reported its fiscal year ended May 2026 with total net sales of ¥285.1 billion, up 8.2% year on year, driven mainly by steady growth in cloud and software revenues and modest increases in software support, while hardw...
Oracle Japan Boosts Dividend on Strong FY2026 Results and Signals Continued Growth
Jun 25, 2026
Oracle Corporation Japan reported net sales of ¥285.1 billion for the fiscal year ended May 31, 2026, an 8.2% increase year on year, with operating profit up 3.4% to ¥89.8 billion and profit for the year rising 4.6% to ¥63.5 billion...
Oracle Japan Posts Higher Earnings and Large Special Dividend, Signals Further Growth
Jun 25, 2026
Oracle Corporation Japan reported an 8.2% rise in net sales to ¥285.1 billion for the fiscal year ended May 31, 2026, with operating profit up 3.4% and profit for the year increasing 4.6% to ¥63.5 billion. Profitability metrics remained ...
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.Date of analysis: Jun 26, 2026