Oracle Japan Shares Rise After Record Fiscal First Quarter

Oracle Japan shares climbed more than 7% on Friday, after the company reported record fiscal first-quarter sales and robust growth in its cloud division. The rally in Tokyo contrasted with a more than 3% drop in U.S.-listed Oracle Corp. shares overnight, which followed a "force majeure" notice from the company related to its New Mexico data center project.

For the June-August quarter, net sales rose 13% year-on-year to 74.86 billion yen (approximately $472 million), while operating profit increased 22.7% to 25.92 billion yen. Net profit climbed 23.2% to 18.25 billion yen. The company stated that both net sales and all profit figures hit record highs for a fiscal first quarter.

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 prior. Oracle Japan indicated that demand for cloud infrastructure has driven usage of its Tokyo and Osaka data centers. The company also plans to expand its sovereign cloud offerings and enhance its AI solutions in Japan.

Oracle has committed over $8 billion to cloud and AI infrastructure in Japan over a decade. SoftBank has rolled out sovereign cloud and generative AI services utilizing Oracle technology. The company maintained its full-year sales growth outlook of 6-10%.