Oracle Japan Shares Jump 7% After Q1 Sales Hit 74.86 Billion Yen
Updated
Updated · CNBC · Sep 25
Oracle Japan Shares Jump 7% After Q1 Sales Hit 74.86 Billion Yen
3 articles · Updated · CNBC · Sep 25
Summary
Oracle Japan rose more than 7% in Tokyo after posting record fiscal first-quarter results, with June-August net sales up 13% to 74.86 billion yen and operating profit up 22.7%.
Cloud revenue climbed 31.7% to 25.14 billion yen, lifting its share of total sales to 33.6% as demand for cloud infrastructure drove usage at the company's Tokyo and Osaka data centers.
Net profit increased 23.2% to 18.25 billion yen, and the company kept its full-year sales growth forecast at 6%-10% while planning to expand sovereign cloud and AI offerings in Japan.
The rally contrasted with a more than 3% overnight drop in U.S.-listed Oracle shares after the parent company issued a force majeure notice tied to its New Mexico data center project.
Oracle's Japan push sits within a broader 2024 pledge to invest more than $8 billion in cloud and AI infrastructure in the country over the next decade.
How will Oracle sustain its explosive sovereign cloud growth in Japan despite the country's crippling shortage of skilled IT labor?
Will the environmental controversies stalling Oracle's US data centers eventually threaten their eight-billion-dollar sovereign cloud ambitions in Japan?
Could Oracle's secret edge in air-gapped technology help them steal Japan's massive government cloud contract from AWS and Microsoft?