Interim report
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2027 [under Japanese GAAP] (Non-consolidated) September 24, 20 26 Company Name Oracle Corporation Japan Listed Stock Exchange: TSE Standard Ticker: 4716 URL: http://www.oracle.com/jp/corporate/investor-relations/index.html Representative & Contact Personnel Telephone: 03-6834-6666 Representative Personnel Contact Personnel Hiroko Utsumi, Representative Corporate Executive Officer & Managing Counsel Yuki Nishio, Director, Investor Relations Schedule for dividends payment: - Preparation of supplementary materials on quarterly financial results: Yes Holding of quarterly financial results conference: Yes (for analysts and institutional investors) (Amounts of less than 1 million yen are rounded down) 1. Financial results for this term (from June 1, 2026 to August 31, 2026) (1) Operating result (% of change from previous year) Net Sales Operating profit Ordinary profit Profit for the period Million Yen % Million Yen % Million Yen % Million Yen % 1st Quarter, May 2027 74,861 13.0 25,918 22.7 26,689 24.9 18,245 23.2 1st Quarter, May 2026 66,275 3.7 21,128 -4.8 21,369 -3.7 14,805 -3.7 Basic earnings per share Diluted earnings per share Yen Sen Yen Sen 1st Quarter, May 2027 142 37 142 37 1st Quarter, May 2026 115 65 115 64 (2) Financial Position Total Assets Net Assets Ratio of shareholders' equity Million Yen Million Yen % 1st Quarter, May 2027 271,189 112,897 41.6 FY ended May 2026 368,416 204,728 55.6 Shareholders’ equity 1st Quarter, May 2027: 112,866 Million Yen (May 2026: 204,697 Million Yen) 2. Dividends Dividend per share 1st Quarter 2nd Quarter 3rd Quarter Fiscal Year Total end end end End Yen Sen Yen Sen Yen Sen Yen Sen Yen Sen FY ended May 2026 - 0 00 - 858 00 858 00 FY ending May 2027 - FY ending May 2027 (Forecast) - - - - (Note1) Revision of outlook for dividends in this quarter: No (Note2) Year-end dividend for this fiscal year has yet to be determined. 3. Forecast for the May 2027 term (from June 1, 2026 to May 31, 2027) (% of change from previous year) Net Sales Basic Earnings per share % Yen Entire term 6.0~10.0 525.00~540.00 (Note1) Revision of forecast for May 2027 term in this quarter: No (Note2) Company uses ranges of values for the forecast. Please refer to 1. Qualitative Information on Results in the Quarter under Review, (3) Qualitative Information on Forecasts, on page 5. (Note3) Estimation of effective tax rate is 31.6% This flash report is unaudited and the translation of the Japanese language version.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 4. Other information (1) Adoption of specified accounting methods for the preparation of quarterly non-consolidated financial statements: Yes (2) Changes in accounting policies, procedures, presentation rules, etc (i) (ii) (iii) (iv) Changes in accounting policies due to revision of accounting standards: None Changes in accounting policies due to reasons other than (i): None Changes in accounting estimates: None Restatements: None (3) The number of shares outstanding (common stock) (i) The number of shares outstanding Current term end, 2027 128,313,071 shares (inclusive of treasury stock) FY ended May 2026 128,312,571 shares (ii) The number of treasury stock Current term end, 2027 155,629 shares FY ended May 2026 155,629 shares (iii) The number of average shares outstanding (cumulative, non-consolidated, year to date) Current term end, 2027 128,157,420 shares Previous term end, 2026 128,019,971 shares (Note) The Company’s stock held by Board Incentive Plan Trust and Employee Stock Ownership Plan Trust is included in the number of treasury stock. The treasury shares which remain in the BIP trust and the ESOP trust are included in the treasury stock to be deducted in the calculation of the number of average shares outstanding during the term. Caution1: Review of the Japanese-language originals of the attached quarterly non-consolidated financial statements by certified public accountants or an audit firm: None Caution2: Above forecast is based on information available at the time of issuance of this report, and actual results may differ due to various factors. Please refer to “Qualitative Information on Forecasts” on page 5.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 202 7 (Non-consolidated) 1 [Table of Contents of Attached Material] 1. Qualitative Information on Results in the Quarter under Review--------------------------------------------- 2 (1) Qualitative Information on Business Outcomes ------------------------------------------------------------ 2 (2) Qualitative Information on Financial Situation------------------------------------------------------------- 5 (3) Qualitative Information on Forecasts------------------------------------------------------------------------- 5 2. Quarterly Financial Statements and Main Notes ---------------------------------------------------------------- 6 (1) Quarterly Balance Sheet---------------------------------------------------------------------------------------- 6 (2) Quarterly Statement of Income-------------------------------------------------------------------------------- 7 (3) Notes to Quarterly Financial Statements--------------------------------------------------------------------- 8 Notes to Going Concern---------------------------------------------------------------------------------------- 8 Notes to Significant Changes in the Stockholders’ Equity------------------------------------------------ 8 Adoption of Specified Accounting Methods for the Preparation of Quarterly Non-Consolidated Financial statements ------------------------------------------------------------------------------------------- 8 Segment Information------------------------------------------------------------------------------------------- 8 Notes to Quarterly Statement of Cash Flows---------------------------------------------------------------- 9
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 2 1. Qualitative Information on Results in the Quarter under Review (1) Qualitative Information on Business Outcomes Overview During the first quarter under review (from June 1, 2026 to August 31, 2026, hereinafter “this quarter”), the Japanese information services industry in which the Company operates experienced steady investments in cloud services, with IT investments aimed at corporate growth and boosting competitiveness, improving efficiency through the use of variable digital data, building the IT environment to realize sustainable human-capital management, and strengthening touchpoints with end users. Under these circumstances, the Company has continued its value proposition for realizing Customers’ innovation, for their business transformation, and for supporting their firm growth through the use of new technologies, including a broad range of integrated cloud services and enterprise AI with the highest levels of security, performance, and efficiency. In addition, a customer-led user group, Japan OATUG (Oracle Applications and Technology Users Group), provides an ongoing forum for interaction among member companies, sharing use cases of our products, and hosting seminars and other events. As these activities have become more active, both the number of registered companies and the number of members have continued to increase. We support Japan OATUG’s activities, led primarily by our executive management as well as our product, development, and services organizations, and position these efforts as initiatives that help promote understanding of our product value through the sharing and expansion of use cases and the accumulation of implementation and utilization know-how. As a result of these initiatives, the Company recorded net sales of 74,861 million yen (up 13.0 % year on year), operating profit of 25,918 million yen (up 22.7 %), ordinary profit of 26,689 million yen (up 24.9 %) and profit for the period of 18,245 million yen (up 23.2 %). Net sales and all profit items reached record highs for a first quarter. Go to Market Strategy Mission Statement The Company aims to achieve further growth by helping customers migrate their mission-critical systems to the cloud and realize greater value through data utilization. Its mission is to help people see data in new ways, discover insights, and unlock endless possibilities. By continuing to evolve our own capabilities and supporting the transformation of our customers, we aim to contribute to the sustainable development of society. Our Strength The Company aims to achieve further growth by helping customers accelerate the migration of mission- critical systems to the cloud and realize business value through greater utilization of data. As a technology company, Oracle leverages the experience and expertise gained from advancing its own business processes and data-driven operations through the use of its technologies, and applies these insights to help build the foundation for growth and innovation among enterprises in Japan. The Company maintains a comprehensive product portfolio spanning infrastructure, databases, and applications across both cloud and on-premises environments. In particular, its database products have been widely adopted for mission-critical workloads that require high levels of security, availability, and performance. One of the Company's key strengths is its ability to provide an integrated technology stack consisting of cloud infrastructure, databases, and applications that serve as the foundation for AI adoption, supported by a technology platform characterized by high reliability and security. Key Initiatives Over the past three years, the Company has pursued two key strategic priorities: “to provide the Japan- focused cloud”, and “to promote AI for customers”. Through these initiatives, the Company has supported the growth and competitiveness of customers in Japan. For the fiscal year ending May 31, 2027, the Company has adopted “AI Changes Everything — Empowering Japan with AI. Accelerating with Trust” as its strategic theme. Under this theme, the Company will address both the value-creation opportunities presented by AI and the increasing requirements for data protection and security.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 3 AI is becoming increasingly important for organizations seeking to improve productivity and strengthen competitiveness. Leveraging its comprehensive capabilities across infrastructure, databases, and applications, the Company will continue to help customers securely and effectively leverage AI in response to growing demand for AI adoption. Specifically, the Company will strengthen the delivery of integrated AI solutions built on Oracle AI Database and Oracle Cloud Infrastructure (OCI), including Oracle Fusion Applications, Oracle NetSuite, and industry-specific applications. At the same time, the Company will further enhance its data management, security, and governance capabilities to help customers securely and effectively leverage their mission-critical operations and data. In addition, the Company will expand the deployment of sovereign cloud offerings delivered by Japanese partners leveraging Oracle Alloy. The Company will promote the delivery of Sovereign Cloud and Sovereign AI solutions designed to address geopolitical and economic security risks, while meeting growing requirements for data sovereignty and operational sovereignty. Through its “One Oracle” strategy, the Company will leverage its comprehensive capabilities across infrastructure, databases, and applications to help customers improve productivity and strengthen competitiveness, while pursuing sustainable growth and enhancing corporate value. In addition, through collaboration across organizations, the Company will deliver tailored Oracle solutions that address the specific needs of customers across industries and contribute to their business success.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 4 Business status in the 1st Quarter of the fiscal year (from June 1, 2026 to August 31, 2026) [Cloud and Software] In cloud and software, the Company has developed its strength of products and services to support its Customers under our strategy stated above. The products and services were adopted by customers across a broad range of sectors, including government, telecommunications, financial services, manufacturing, and distribution and services. Regarding cloud, we continued to focus on facilitating existing customers’ upgrades to the Oracle Fusion Applications (a lift and shift from on-premises to the cloud) to further accelerate a shift to the cloud. We also worked proactively to acquire new customers. Regarding “Oracle Cloud Infrastructure (OCI)”, there is a lot of demands from customers who prioritize factors such as performance, security and cost-effectiveness. These demands have led to the usage of our Tokyo and Osaka region data centers. We have been registered for the ISMAP (Information system Security Management and Assessment Program) as a Government Cloud supplier with OCI. Furthermore, our OCI is selected as Cloud service for government cloud development at the Digital Agency, and prospective benefits amid a push for the Central and Local governments’ digitalization include an acceleration and increase in investment, larger projects, and further stimulation of demand over the mid to long term. The Company has a website that provides information on OCI for governments and local governments (in Japanese only). https://www.oracle.com/jp/cloud/government/ NetSuite for SME market remained brisk performance in adding new customers who adopted Cloud ERP. In our software license business, there is a vigorous demand for to break away from legacy systems and move toward to standardize and open systems. In addition, IT investment remains strong, not only cost reduction, but also renewing flexible IT infrastructure for digital innovation and growing their business. In terms of Partner business side, we are expanding our cooperative ties of alliance and keep on expanding our Cloud partnerships, while creating new demands on SME market segment. Also, we have been keeping the high renewal rate for software support contracts and a strong attach rate for software license. [Hardware] In the Hardware segment, the Company released the latest generation of Oracle Exadata platform, “Oracle Exadata X11M” in January 2025. Starting at the same price as the previous generation, Exadata X11M which is optimized for the latest generation AMD EPYC™ processors, delivers significant performance improvements across AI, analytics, and online transaction processing (OLTP). Combining intelligent power management with the ability to run mission-critical workloads faster and on fewer systems helps customers achieve their energy efficiency and sustainability goals. Exadata removes storage bottlenecks and dramatically increases performance for the most demanding workloads, such as Online Transaction Processing (OLTP), analytics, IoT, fraud detection, and high- frequency trading. Exadata X11M’s performance increased across all workloads, with much faster vector search for AI, much faster IOPS and shorter latencies for transaction processing, and much faster data scans and query throughput for analytics. [Services] In the Services segment, the number of composite projects in Consulting Services, that leverage the Company’s comprehensive product and service portfolio, has increased steadily. Examples include projects for platform transition from the on-premise environments to the OCI (Oracle Cloud Infrastructure) environment and projects integrating with Cloud Applications.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 5 Net Sales breakdown by business segments (Year to Date) Item FY2026 FY2027 May 2026 1st Quarter 1st Quarter Amount Comp. Amount Comp. YoY Amount Comp. Million Yen ％ Million Yen ％ ％ Million Yen ％ Cloud 19,097 28.8 25,143 33.6 31.7 83,184 29.2 Software license 9,132 13.8 10,869 14.5 19.0 47,618 16.7 Software support 28,308 42.7 28,871 38.6 2.0 113,678 39.9 Software 37,441 56.5 39,740 53.1 6.1 161,297 56.6 Cloud and software 56,539 85.3 64,884 86.7 14.8 244,481 85.8 Hardware 3,463 5.2 3,811 5.1 10.1 15,048 5.3 Services 6,272 9.5 6,165 8.2 -1.7 25,543 9.0 Total 66,275 100.0 74,861 100.0 13.0 285,073 100.0 (Notes): Amounts are rounded down. Composition ratios and year-on-year changes (percentage of change year-on-year) are rounded to the nearest whole number. (2) Qualitative Information on Financial Situation Current assets at the end of the first quarter stood at 229,161 million yen (down by 97,347 million yen from the previous fiscal year end). On July 31, 2026, the Company collected 50,000 million yen ahead of schedule from a portion of its short-term loans receivable from subsidiaries and associates, representing loans to its parent company, Oracle Japan Holding Inc. This was carried out to provide funds for the payment of dividends and other purposes. The dividends were paid effective August 10, 2026 pursuant to the resolution by the Board of Directors on July 23, 2026. Accordingly, dividends of 110,080 million yen were paid. Noncurrent assets at the end of the first quarter were 42,028 million yen (up by 121 million yen from the previous fiscal year end). Liabilities at the end of the first quarter were 158,292 million yen (down by 5,395 million yen from the previous fiscal year end). Net assets at the end of the first quarter were 112,897 million yen (down by 91,831 million yen from the previous fiscal year end). This was mainly attributable to the payment of a year-end dividend of 858 yen per share, comprising an ordinary dividend of 198 yen and a special dividend of 660 yen, totaling 110,080 million yen. As a result, the equity ratio was 41.6% (down by 14.0 percentage points from the previous fiscal year end). (3) Qualitative Information on Forecasts There is no change from the forecast announced on June 2 5, 2026 for the fiscal year ending May 31, 2027.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 6 2. Quarterly Financial Statements and Main Notes (1) Quarterly Balance Sheet (Unit : Million yen) Description Previous term end (as of May 31, 2026) Current term end (as of August 31, 2026) Assets Current assets Cash and deposits 84,968 38,714 Accounts receivable-trade 22,576 21,239 Short-term loans receivable from 212,000 162,000 subsidiaries and associates Other 6,984 7,227 Allowance for doubtful accounts -20 -20 Total current assets 326,509 229,161 Noncurrent assets Property, plant and equipment Buildings, net 5,881 5,797 Land 26,057 26,057 Other, net 3,962 3,910 Total property, plant and equipment 35,900 35,765 Intangible assets 0 0 Investments and other assets Other 6,006 6,263 Total investments and other assets 6,006 6,263 Total noncurrent assets 41,907 42,028 Total assets 368,416 271,189 Liabilities Current liabilities Accounts payable-trade 15,686 16,811 Accounts payable-other 8,693 4,797 Income taxes payable 16,097 8,811 Contract liabilities 112,168 114,253 Provision for bonuses 2,115 1,005 Other Provision 1,205 1,613 Other 7,719 10,999 Total current liabilities 163,687 158,292 Total liabilities 163,687 158,292 Net assets Shareholders' equity Share capital 25,253 25,255 Capital surplus 8,604 8,606 Retained earnings 172,899 81,065 Treasury shares -2,061 -2,061 Total shareholders' equity 204,697 112,866 Share acquisition rights 31 31 Total net assets 204,728 112,897 Total liabilities and net assets 368,416 271,189
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 7 (2) Quarterly Statement of Income (Unit : Million yen) Description Previous term (From June 1, 2025 to August 31, 2025) Current term (From June 1, 2026 to August 31, 2026 ) Net sales 66,275 74,861 Cost of sales 36,666 41,794 Gross Profit 29,608 33,066 Selling, general and administrative expenses 8,480 7,147 Operating profit 21,128 25,918 Non-operating income Interest income 128 651 Foreign exchange gains 37 52 Other 76 66 Total Non-Operating Income 241 770 Non-Operating expenses Other 0 0 Total Non-Operating expenses 0 0 Ordinary profit 21,369 26,689 Extraordinary Income Gain on reversal of share acquisition rights 3 - Total Extraordinary Income 3 - Profit for the period before income tax 21,372 26,689 Income taxes 6,566 8,443 Profit for the period 14,805 18,245
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 8 (3) Notes to Quarterly Financial Statements (Notes to Going Concern): Not Applicable (Notes to Significant Changes in the Stockholders’ Equity) As a result of the payment on August 10, 2026, of the year-end dividend for the 41st fiscal year, paid out of retained earnings (858 yen per share, comprising an ordinary dividend of 198 yen and a special dividend of 660 yen), which had been resolved at the Board of Directors meeting held on July 23, 2026, retained earnings decreased by 110,080 million yen. (Adoption of Specified Accounting Methods for the Preparation of Quarterly Non-Consolidated Financial statements) The Company has adopted a method in which income tax expense is calculated by multiplying quarterly profit before income taxes by the effective tax rate reasonably estimated after applying tax- effect accounting to profit before income taxes for the fiscal year under review. Income taxes-deferred are presented as included in income taxes. (Segment Information, etc.) 【Segment Information】 Ⅰ. Previous first quarter (from June 1, 2025 to August 31, 2025) Segment sales and operating profit (loss) by reportable segment (Unit: Million Yen) Reportable operating segments Adjustments (Note) 1 (Note) 2 Amount on Statement of Income Cloud and software Hardware Services Total Sales External customers 56,539 3,463 6,272 66,275 － 66,275 Intersegment net sales or transfer － － － － － － Total 56,539 3,463 6,272 66,275 － 66,275 Operating profit (loss) 21,159 124 1,350 22,634 -1,505 21,128 (Notes): 1. Segment profit adjustment of minus 1,505 million yen is a Company-wide expense, which primarily relates to administration departments that do not belong to any reported segment. 2. Segment profit is reconciled to operating profit in the statement of income. Ⅱ. Current first quarter (from June 1, 2026 to August 31, 2026 1. Segment sales and operating profit (loss) by reportable segment (Unit: Million Yen) Reportable operating segments Adjustments (Note) 1 (Note) 2 Amount on Statement of Income Cloud and software Hardware Services Total Sales External customers 64,884 3,811 6,165 74,861 － 74,861 Intersegment net sales or transfer － － － － － － Total 64,884 3,811 6,165 74,861 － 74,861 Operating profit (loss) 24,627 59 1,857 26,544 -625 25,918 (Notes): 1. Segment profit adjustments of minus 625 million yen is a Company-wide expense, which primarily relates to administration departments that do not belong to any reported segment. 2. Segment profit is reconciled to operating profit in the statement of income.
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Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 20 27 (Non-consolidated) 9 (Notes to Quarterly Statement of Cash Flows) The Company has not prepared a quarterly statement of cash flows for the three months ended August 31, 2026. Depreciation and amortization (including amortization of intangible assets) for the three months ended August 31, 2026 are as follows. Previous First Quarter (From June 1, 2025 to August 31, 2025) (million yen) Current First Quarter (From June 1, 2026 to August 31, 2026) (million yen) Depreciation and amortization 340 327