Oracle Japan (4716) AI Stock Analysis

• Market Cap: ¥1.13T
• Dividend Yield: 1.37%
• Average Volume (3M): 207.33K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.21
• 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: ¥13,000.00
• Price Target Upside: -3.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 505.06
• Revenue Forecast (FY): ¥285.04B

• Rating: 74 Outperform
• Price Target: ¥9,846.00 ▼(-26.69% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial quality (high margins, steady growth, and a zero-debt balance sheet) and a constructive earnings-call outlook led by rapid cloud growth and maintained guidance. The main offset is weak technical positioning, with the stock in a pronounced downtrend despite oversold momentum. Valuation and dividend yield are supportive but secondary.

Positive Factors

Rapid cloud revenue growth

Cloud revenue growing 38.3% and reaching 29% of sales reflects durable shift to subscription/consumption economics. This increases recurring revenue, customer stickiness via infrastructure/Autonomous DB consumption, and creates a multi-year runway as customers migrate from on‑premise licenses to cloud services.

Conservative balance sheet (no debt)

Zero reported debt materially reduces financial risk and interest‑rate sensitivity, giving Oracle Japan flexibility to fund cloud investments, inorganic opportunities, or shareholder returns without leverage. Strong equity and high ROE (~37% in 2025) support durable capital efficiency and resilience.

High margins and strong cash conversion

Consistently elevated gross and operating margins paired with free cash flow near net income indicate high earnings quality and efficient operations. Strong cash conversion sustains reinvestment in cloud, funds restructuring and partner initiatives, and supports long‑term shareholder returns without balance‑sheet strain.

Negative Factors

Ongoing license revenue decline

A structural migration from perpetual licenses to cloud subscriptions reduces high‑margin license receipts and requires successful upsell of cloud services to offset lost license cashflows. If cloud monetization or migration pacing lags, overall revenue and profit mix could be pressured for multiple quarters.

Modest margin drift

Even with high absolute margins, a persistent downward drift signals pressure from product mix (more cloud consumption vs. license), higher reinvestment or restructuring costs, and potential pricing or competitive pressure. Continued drift could erode operating leverage and returns over time.

Operating cash flow volatility

A decline in operating cash flow despite strong net income indicates working‑capital or timing volatility that can constrain funding for cloud capex, partner programs, or M&A. Persistent variability raises execution risk during the cloud transition even if long‑run free cash remains strong.

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

Strong profitability and steady multi-year revenue growth with a notable latest-year uplift. Balance sheet is very conservative with zero debt and strong ROE. Main watch items are modest margin drift lower and some near-term cash flow volatility (operating cash flow declined in 2025).

Income Statement

Revenue has grown steadily over the last several years, with a particularly strong step-up in the latest annual period (2025). Profitability is a clear strength: gross margin remains in the mid-to-high 40% range and operating and net margins are consistently high (roughly low-30% operating margin and ~23% net margin), indicating durable pricing power and cost discipline. The main weakness is that margins have drifted modestly lower versus earlier periods, suggesting incremental pressure from mix, costs, or reinvestment even as top-line growth accelerates.

Balance Sheet

The balance sheet is conservatively positioned with no reported debt across the periods shown, which significantly reduces financial risk and interest-rate sensitivity. Equity levels are substantial relative to assets, and returns to shareholders are strong (return on equity generally ~29%–41% and still ~37% in 2025), reflecting efficient profitability. A watch item is that equity has been volatile year-to-year (notably lower in 2022–2023 versus 2021 and 2024), which can signal large payouts or balance sheet movements that investors should monitor even though leverage is not a concern.

Cash Flow

Cash generation is solid: free cash flow is consistently close to net income (roughly ~97%–99%), which supports earnings quality and suggests limited working-capital or non-cash distortions. Free cash flow has also expanded over time, with some years showing strong growth. The key weakness is that cash flow from operations is only covering a modest portion of total assets (mid-40% to high-50% range, and lower in 2025), and operating cash flow declined in 2025 versus 2024, pointing to some near-term volatility in cash conversion despite strong reported profits.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 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: Neutral
• Last Price: 13430.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4716, the sentiment is Neutral. The current price of 13430 is above the 20-day moving average (MA) of 9683.10, above the 50-day MA of 11327.84, and below the 200-day MA of 14552.60, indicating a neutral trend. The MACD of -558.43 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 42.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4716.

Oracle Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4684	77 Outperform	¥1.84T	22.94	15.18%	1.51%	10.76%	13.65%
9759	77 Outperform	¥199.38B	16.50	―	2.49%	9.10%	14.67%
4828	77 Outperform	¥78.52B	17.29	31.13%	1.68%	16.12%	46.57%
4716	74 Outperform	¥1.13T	18.37	41.04%	1.37%	8.11%	5.23%
4776	71 Outperform	¥93.87B	13.36	―	1.02%	26.47%	142.77%
4432	66 Neutral	¥87.99B	15.63	―	2.59%	5.22%	-6.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.