Oracle Corporation Japan (JP:4716)
:4716
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Oracle Japan
(4716)
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Rating:74Outperform
Price Target:
¥9,846.00
▼(-26.69% Downside)
Action:ReiteratedDate: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
Conservative balance sheet (no debt)
Zero reported debt materially reduces financial risk and interest-rate sensitivity, preserving flexibility for reinvestment, opportunistic M&A, or sustaining dividends. Over 2–6 months this underpins capital allocation optionality and resilience through macro or funding stress.
Negative Factors
Ongoing license revenue decline
A structural shift from upfront license sales to cloud subscriptions reduces a historically high‑margin revenue pool. If cloud monetization or migration pacing lags, total revenue growth or near‑term margins could be pressured until recurring cloud revenue fully offsets license contraction.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet (no debt)
Zero reported debt materially reduces financial risk and interest-rate sensitivity, preserving flexibility for reinvestment, opportunistic M&A, or sustaining dividends. Over 2–6 months this underpins capital allocation optionality and resilience through macro or funding stress.
Read all positive factors
Oracle Japan (4716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.07T
Dividend Yield1.37%
Average Volume (3M)207.33K
Price to Earnings (P/E)17.8
Beta (1Y)0.15
Revenue Growth8.11%
EPS Growth5.23%
CountryJP
Employees2,257
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)132.84
Shares Outstanding128,310,970
10 Day Avg. Volume146,730
30 Day Avg. Volume207,330
Financial Highlights & Ratios
PEG Ratio3.89
Price to Book (P/B)13.22
Price to Sales (P/S)8.21
P/FCF Ratio33.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥13,000.00Price Target Upside-3.20% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)503.45
Revenue Forecast (FY)¥283.92B
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, suc...
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), Plat...
Oracle Japan Earnings Call Summary
Earnings Call Date:Dec 23, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Positive
The call emphasized strong cloud-driven growth (cloud revenue +38.3% and now 29% of revenue), record quarterly revenue and profits, important strategic partnerships (SoftBank alloy), and notable customer deployments across industries, which collectively demonstrate solid momentum. Headwinds include a modest decline/weakness in license revenue, higher H1 personnel costs due to one-time restructuring, and investor concerns about parent company financing (perception risk). Management affirmed a robust second-half pipeline and maintained full-year revenue guidance. Overall, positives (large cloud growth, record results, partnerships, pipeline) materially outweigh the listed negatives.Positive Updates
Record Quarterly Revenue and Profits
Total revenue was JPY 134.677 billion, up 7.5% year-over-year. Operating income reached JPY 42.659 billion, up 1.8%, and net income was JPY 29.913 billion, up 1.9%. Management stated total revenue and all profit categories hit record highs for the second quarter.
Negative Updates
License Revenue Weakness / Ongoing Decline
License revenues were described as 'a little weak' in the first half. Management expects license revenue to decline by small percentages going forward as customers migrate to cloud, though they also said the H2 license pipeline is strong.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Profits
Total revenue was JPY 134.677 billion, up 7.5% year-over-year. Operating income reached JPY 42.659 billion, up 1.8%, and net income was JPY 29.913 billion, up 1.9%. Management stated total revenue and all profit categories hit record highs for the second quarter.
Read all positive updates
Company Guidance
Oracle Japan said it will "stick with" its full‑year revenue guidance while citing a robust second‑half pipeline; Q2 results provide the baseline for that outlook with total revenue of JPY 134.677 billion (up 7.5% year‑on‑year), total cloud revenue JPY 39.129 billion (up 38.3%) representing 29% of company revenues, operating income JPY 42.659 billion (up 1.8%) and net income JPY 29.913 billion (up 1.9%) — all record highs for the quarter — and noted strong infrastructure consumption (including Autonomous Database). Management expects cloud revenue growth to more than offset a small percentage decline in license revenue, sees a strong license pipeline in H2, and anticipates only normal expense increases (first‑half personnel costs were partly driven by one‑time restructuring).Oracle Japan Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| 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 | 120.70B | 112.72B | 107.39B | 104.62B | 100.75B |
| EBITDA | 87.08B | 88.09B | 81.13B | 75.73B | 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 | 148.36B | 125.16B | 111.51B | 114.00B |
| Stockholders Equity | 154.15B | 163.68B | 191.79B | 155.85B | 125.36B | 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
Neutral
13430.00
Price Trends
9262.36
Negative
11078.48
Negative
13416.79
Negative
Market Momentum
-221.06
Negative
51.84
Neutral
37.10
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 8815.10, above the 50-day MA of 9262.36, and above the 200-day MA of 13416.79, indicating a neutral trend. The MACD of -221.06 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.10 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥1.90T | 27.95 | 15.18% | 1.51% | 10.76% | 13.65% | |
77 Outperform | ¥200.25B | 18.05 | ― | 2.49% | 9.10% | 14.67% | |
77 Outperform | ¥70.78B | 21.08 | 31.71% | 1.68% | 16.12% | 46.57% | |
74 Outperform | ¥1.07T | 17.76 | 38.51% | 1.37% | 8.11% | 5.23% | |
74 Outperform | ¥90.14B | 11.45 | ― | 2.59% | 5.22% | -6.62% | |
70 Outperform | ¥90.15B | 19.91 | ― | 1.02% | 26.47% | 142.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4716
Oracle Japan
9,066.00
-6,987.26
-43.53%
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Oracle Japan Corporate Events
Oracle Japan Posts Higher Sales but Lower Margins as It Refines Cloud and Software Disclosure
Mar 24, 2026
Oracle Japan reported supplemental results for the third quarter of fiscal 2026, showing continued top-line growth but pressure on profitability. Total net sales for the first three quarters increased year on year, driven primarily by steady expan...
Oracle Japan Posts Solid Q3 Growth and Affirms Upbeat Full-Year Outlook
Mar 24, 2026
Oracle Corporation Japan reported steady growth for the third quarter of its fiscal year ending May 31, 2026, with net sales rising 7.1% year on year to ¥206.7 billion and operating profit up 4.4% to ¥67.0 billion. Net profit increased 4...
Oracle Japan Posts Solid Q3 FY2026 Growth and Keeps Full-Year Outlook Intact
Mar 24, 2026
Oracle Japan reported non-consolidated net sales of ¥206.67 billion for the first nine months of the fiscal year ending May 31, 2026, up 7.1% year on year, with operating profit rising 4.4% to ¥67.02 billion and net income increasing 4.6...
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.