Oracle Japan Shares Jump 7% on Record Quarter as U.S. Parent Sells Off
Sales rose 13% to a record fiscal first-quarter level, while cloud revenue increased 31.7% and drove a larger share of the business.
Oracle Japan shares rose more than 7% Friday after the company posted record fiscal first-quarter sales and profits, diverging sharply from a selloff in its U.S.-listed parent.
Sales for the June-August quarter increased 13% from a year earlier to $472 million. Operating profit climbed 22.7%, while net profit rose 23.2%. All major profit measures and sales reached record levels for a first quarter.
Cloud revenue grew 31.7% year over year, lifting its share of total sales to 33.6% from 28.8%. Usage increased at Oracle Japan’s Tokyo and Osaka data centers as demand for cloud infrastructure strengthened.
Oracle Japan maintained its full-year sales-growth outlook of 6% to 10% and said it plans to expand sovereign cloud services and strengthen artificial-intelligence solutions in Japan.
The Tokyo-listed shares gained as U.S.-listed Oracle shares dropped more than 3% overnight after the parent company issued a force majeure notice related to its New Mexico data center project. Oracle has committed more than $8 billion to cloud and AI infrastructure in Japan over a decade.
