
Oracle Corp Japan shares rose over 7% after reporting record fiscal first-quarter sales and profits, driven by 31.7% cloud revenue growth, while U.S.-listed Oracle shares fell more than 3% following a force majeure notice on its New Mexico data center project.
AI-generated summary
Oracle Japan reported record fiscal first-quarter results with strong cloud growth, while its U.S. parent faced challenges related to a New Mexico data center project.
Shares of Oracle Corp Japan surged more than 7% Friday after the company reported record fiscal first-quarter sales and profits, as its cloud business posted strong growth.
The rally in Tokyo stood in contrast to a more than 3% drop in U.S.-listed Oracle shares overnight, after the company sent a "force majeure" notice tied to its New Mexico data center project.
The Japanese arm said Thursday that net sales for the June-August quarter rose 13% from a year earlier to 74.86 billion yen ($472 million), while operating profit jumped 22.7% to 25.92 billion yen. Net profit climbed 23.2% to 18.25 billion yen.
Net sales and all profit items hit record highs for a fiscal first quarter, the company said.
Cloud revenue jumped 31.7% year on year to 25.14 billion yen, increasing its share of total sales to 33.6% from 28.8% a year earlier.
Oracle Japan said demand for cloud infrastructure had driven usage of its Tokyo and Osaka data centers. The company also said it plans to expand its sovereign cloud offering and strengthen its AI solutions in Japan.
The company maintained its full-year outlook for sales growth of 6-10%.
Oracle in 2024 committed more than $8 billion to cloud and AI infrastructure in Japan over a decade, while SoftBank has rolled out sovereign cloud and generative AI services using Oracle technology.
AI outlook — possibilities, not facts
Oracle Japan will continue expanding its sovereign cloud and AI offerings in Japan through 2025
Likely · Within months
The New Mexico data center force majeure issue will be resolved within the next quarter
Possible · Within months

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