Oracle Japan shares surge 7% after record fiscal first quarter, bucking selloff of U.S. parent

Oracle Japan's shares experienced a significant surge of 8.1% to ¥9,886 on Friday following the company's release of impressive first-quarter fiscal 2027 results. The Japanese cloud services provider disclosed record-breaking net sales of JPY 74.86 billion for the June–August 2026 quarter, marking a 13% increase year-over-year and surpassing market expectations by 5.4%.

Operating profit rose by 22.7% to JPY 25.92 billion, while net profit climbed by 23.2% to JPY 18.25 billion. Among the key highlights, cloud revenue skyrocketed 31.7% year-over-year to JPY 25.14 billion, increasing cloud's share of total sales to 33.6% from 28.8% a year earlier. This growth was driven by robust demand at Oracle's Tokyo and Osaka data centers.

Management further revealed plans to expand sovereign cloud capabilities and enhance artificial intelligence platform offerings in Japan, backed by a multi-year infrastructure investment program. The company retained its full-year sales growth guidance of 6–10%, which analysts viewed as a clear indication of management confidence rather than caution.

The Tokyo market's positive reaction was particularly noteworthy as it contrasted sharply with a decline in U.S.-listed Oracle shares the previous day, which were negatively impacted by a separate force majeure notice concerning a domestic U.S. data center project.