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Oracle Japan shares jump 7% on record first-quarter results, bucking U.S. parent selloff

Oracle Japan shares rose more than 7% after record fiscal first-quarter sales and profit, driven by cloud growth, while U.S.-listed Oracle fell on a New Mexico data center force majeure notice.

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). Operating profit jumped 22.7% to 25.92 billion yen, and net profit climbed 23.2% to 18.25 billion yen. Net sales and all profit items reached record highs for a fiscal first quarter, the company said.

Cloud revenue increased 31.7% year on year to 25.14 billion yen. That lifted cloud's share of total sales to 33.6%, up 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% to 10%.

The results and the share move put the Japanese unit's performance in contrast with the U.S. parent's data center issue. Oracle in 2024 committed more than $8 billion to cloud and AI infrastructure in Japan over a decade, according to the report. SoftBank has rolled out sovereign cloud and generative AI services using Oracle technology.