Oracle Japan Surges on Record Earnings While US Parent Drops

Oracle Japan's stock jumped about 8% on Friday after releasing record first-quarter revenue and profit results. The Japanese unit traded around ¥9,847, up 7.7%, after earlier touching ¥10,040.

The company reported a 13% increase in revenue to ¥74.86 billion, with cloud revenue climbing 31.7% and operating profit increasing 22.7%. Cloud revenue reached about ¥25.14 billion, accounting for roughly one-third of sales.

The key takeaway from the results is that Oracle Japan's cloud growth has turned into profit now, rather than just being a distant promise. This is reflected in the operating margin expanding to around 34.6% from approximately 31.9% a year earlier.

In contrast, the US parent, Oracle Corp, fell 3.47% on Thursday after concerns over Project Jupiter revived questions about execution and financing. Despite delivering strong revenue growth of 30%, Oracle's free cash flow was negative $5 billion due to heavy spending on data-center capacity.