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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 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
Oracle Japan's strong financial performance, characterized by robust revenue growth and a debt-free balance sheet, is a key strength. The stock's positive technical trend further supports its attractiveness. However, a relatively high P/E ratio suggests potential overvaluation, offset by a strong dividend yield. These factors combined result in a solid but not exceptional overall stock score.

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

Oracle Japan Business Overview & Revenue Model

Company DescriptionOracle 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 MoneyOracle 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 Earnings Call Summary

Earnings Call Date:Sep 25, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Dec 23, 2025
Earnings Call Sentiment Neutral
The call highlighted strong growth in cloud revenues and successful customer implementations, indicating a positive performance in cloud services. However, the decline in operating and net income due to reduced software license business and increased HR expenses presents challenges. Overall, the sentiment is balanced with strong cloud growth offset by declines in other areas.
Q1-2026 Updates
Positive Updates
Strong Cloud Revenue Growth
Total cloud revenue was JPY 19,097 million, up 37.2% year-on-year, now representing 29% of the total company revenue. The growth was driven by strong demand for Oracle Cloud Infrastructure and autonomous database.
Successful Customer Implementations
Examples of successful customer implementations include Kubota, Yamato Contact Service, Toyo University, and AEON Housing Loan Service, showcasing Oracle's broad outreach and presence in mission-critical systems.
Record High Total Revenue
Total revenue reached JPY 66,275 million, growing by 3.7% compared to the previous year, marking a record high for the first quarter.
Negative Updates
Decline in Operating and Net Income
Operating income decreased by 4.8% to JPY 21,128 million, and net income was down by 3.7% to JPY 14,805 million. This decline was mainly due to the reduction in high-margin software license business.
Increased HR Expenses
HR expenses grew significantly due to factors such as salary increases, restructuring expenses, and stock compensation expenses, despite no increase in headcount.
Company Guidance
In the Oracle Japan First Quarter Fiscal Year 2026 Earnings Conference Call, significant metrics were discussed, highlighting the company's robust performance, particularly in the cloud services sector. Total revenue reached a record high of JPY 66,275 million, marking a 3.7% increase from the previous year, with cloud revenue alone jumping by 37.2% to JPY 19,097 million, now comprising 29% of the total revenue. Despite a decline in high-margin software license business impacting profit categories, with operating income at JPY 21,128 million (a 4.8% decrease) and net income at JPY 14,805 million (a 3.7% decrease), the company maintained its revenue and EPS guidance for the fiscal year. The call also mentioned the strategic initiatives to drive cloud adoption and AI innovation, alongside specific customer successes that illustrate Oracle's market penetration across various industries.

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
88
Very Positive
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
92
Very Positive
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
85
Very Positive
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.
BreakdownTTMDec 2025Dec 2023Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue260.55B263.51B226.91B244.54B214.69B208.52B
Gross Profit120.40B121.39B108.29B113.55B105.55B101.76B
EBITDA87.67B88.10B75.72B81.13B74.87B72.95B
Net Income60.28B60.73B52.01B55.60B51.18B49.17B
Balance Sheet
Total Assets271.81B316.40B281.01B340.16B236.87B334.00B
Cash, Cash Equivalents and Short-Term Investments26.13B66.62B104.53B91.90B60.14B53.96B
Total Debt0.000.000.000.000.000.00
Total Liabilities124.05B152.72B125.16B148.37B111.52B114.00B
Stockholders Equity147.77B163.68B155.85B191.79B125.35B220.00B
Cash Flow
Free Cash Flow0.0064.64B66.97B79.84B52.70B65.05B
Operating Cash Flow0.0066.60B67.73B80.34B53.09B65.15B
Investing Cash Flow0.00-1.96B-743.00M-72.39B99.83B-50.12B
Financing Cash Flow0.00-89.96B-22.67B-20.69B-146.83B-21.11B

Oracle Japan Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14805.00
Price Trends
50DMA
15432.20
Negative
100DMA
16132.50
Negative
200DMA
15666.34
Negative
Market Momentum
MACD
-242.21
Negative
RSI
42.82
Neutral
STOCH
62.51
Neutral
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 14805 is below the 20-day moving average (MA) of 14828.75, below the 50-day MA of 15432.20, and below the 200-day MA of 15666.34, indicating a bearish trend. The MACD of -242.21 indicates Negative momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
77
Outperform
$1.85T30.8043.04%1.28%5.89%3.55%
72
Outperform
¥145.20B27.630.95%22.97%107.52%
72
Outperform
¥106.49B19.942.09%4.60%37.53%
69
Neutral
$2.37T31.7316.06%1.38%10.25%12.61%
69
Neutral
¥234.76B20.892.63%7.09%11.95%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
41
Neutral
€285.76B-19.16%19.57%-16.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4716
Oracle Japan
14,805.00
165.73
1.13%
JP:4684
OBIC Co
5,060.00
390.34
8.36%
JP:3994
Money Forward
4,790.00
-276.00
-5.45%
JP:4776
Cybozu, Inc.
3,165.00
1,145.94
56.76%
JP:6947
Zuken Inc.
4,785.00
1,276.41
36.38%
JP:9759
NSD Co., Ltd.
3,310.00
201.29
6.48%

Oracle Japan Corporate Events

Oracle Japan Reports Strong Q3 Performance with Increased Sales and Profits
Mar 21, 2025

Oracle Corporation Japan reported a strong performance in the third quarter of the fiscal year ending May 31, 2025, with significant increases in net sales and profits compared to the previous year. The company achieved a 9.1% increase in net sales and an 11.6% rise in profit for the period, reflecting its solid market positioning and effective operational strategies. Despite a decrease in total assets and net assets, Oracle Japan maintained a stable financial position, with a slight decline in the ratio of shareholders’ equity. The company has not revised its dividend outlook or forecast for the fiscal year, indicating confidence in its ongoing financial stability and growth prospects.

Oracle Japan Reports Strong Q3 Financial Performance
Mar 21, 2025

Oracle Corporation Japan reported a strong financial performance for the third quarter of the fiscal year ending May 31, 2025, with significant increases in net sales, operating profit, and ordinary profit compared to the previous year. The company’s robust growth reflects its effective market strategies and solidifies its position in the technology sector, although the forecast for the fiscal year remains cautious with no revisions made this quarter.

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: Apr 10, 2025