Oracle Corporation Japan (4716.T) Bundle
From its founding in 1982 to its Tokyo Stock Exchange debut as 4716 in 1999, Oracle Corporation Japan has evolved into a dominant enterprise IT provider-majority-owned (about 74%) by Oracle Corporation while keeping 26% public float-expanding from databases into cloud infrastructure (OCI), Fusion applications, AI and hybrid solutions, and even winning a government cloud contract in October 2022; the company reported a 7.8% increase in net sales for the fiscal year ending May 31, 2025, boasts a market capitalization near ¥1.74 trillion (as of December 17, 2025), pays dividends (¥190 per share in 2025), operates with zero debt and ¥91.9 billion in cash and equivalents, and generates high profitability (ROIC ~61.2%, EBIT margin ~33%), while partnering with local firms (e.g., Fujitsu on Oracle Alloy) to address data sovereignty and drive Japan's digital transformation-read on to explore the company's history, ownership, mission, operating model and revenue engines.
Oracle Corporation Japan (4716.T): Intro
History and corporate evolution- Founded in 1982 as the Japanese subsidiary of Oracle Corporation (USA), bringing enterprise database and middleware technology to Japan.
- Listed on the Tokyo Stock Exchange in 1999 under ticker 4716, providing local investors access to Oracle's Japan operations.
- Expanded from core database and enterprise applications into cloud infrastructure (IaaS), platform services (PaaS), SaaS applications, and AI-infused solutions throughout the 2010s and 2020s.
- Selected by the Japanese government in October 2022 to provide cloud services for public-sector workloads, strengthening its presence in regulated and mission-critical environments.
- Subsidiary of Oracle Corporation (U.S.), but publicly traded in Japan as Oracle Corporation Japan (4716.T).
- Shareholder mix includes institutional investors (domestic and international), retail investors, and cross-holdings; Oracle Corporation (U.S.) typically holds a significant strategic stake though exact parent ownership levels vary with filings.
- Drive enterprise digital transformation in Japan via cloud-first infrastructure, business applications, and AI-enabled platforms.
- Support public-sector modernization and regulated industries through secure, compliant cloud services.
- Deliver growth through subscription/cloud revenue mix, services, and industry-specific solutions.
- Core offerings: Oracle Database (on-prem and cloud), Oracle Cloud Infrastructure (OCI), Fusion ERP/HCM/SCM SaaS, and industry cloud applications.
- Delivery: direct sales to large enterprises and government, partner ecosystem (system integrators, cloud MSPs), and managed services for migration and operation.
- Monetization: subscription-based licensing for cloud and SaaS, support and maintenance contracts, professional services, and usage-based IaaS/PaaS billing.
- Cloud subscriptions and licences (recurring revenue) - OCI, SaaS applications, and managed cloud services.
- Support and maintenance - legacy on-premise database and application support contracts.
- Professional and consulting services - migrations, integrations, and industry implementations.
- Usage-based infrastructure fees - compute, storage, networking, and advanced platform services billed by consumption.
| Metric | Value |
|---|---|
| Net sales (FY ended May 31, 2025) | Reported net sales increased 7.8% year-over-year |
| Market capitalization (as of Dec 17, 2025) | Approximately ¥1.74 trillion |
| Primary revenue mix | Growing share from cloud subscriptions and services; support & maintenance still significant |
| Public-sector engagements | Selected by Japanese government for cloud services (Oct 2022) - ongoing contracts and certifications |
| Employee headcount (approx.) | Several thousand employees across Japan (sales, engineering, services) |
- Competes with global cloud platforms (AWS, Microsoft Azure, Google Cloud) and local integrators for enterprise and government workloads.
- Differentiators: Oracle's database and application stack, OCI price/performance for certain workloads, and long-standing enterprise relationships in Japan.
- Risks: migration of legacy customers to hyperscalers, price competition, and regulatory/data residency requirements affecting procurement.
- October 2022: selection as a government cloud provider - bolsters credibility in public sector and regulated industries.
- 2020s: accelerated rollout of AI-enhanced cloud services and vertical solutions tailored to manufacturing, finance, and public services.
- FY 2025: reported 7.8% increase in net sales, reflecting cloud subscription growth and expanded public-sector business.
Oracle Corporation Japan (4716.T): History
Oracle Corporation Japan (4716.T) was established as the Japanese arm of Oracle Corporation to commercialize Oracle's database, middleware, cloud and applications in Japan. Over decades it transitioned from a reseller/partner model to a full-service subsidiary that combines local sales, consulting, cloud regions and support, aligning global product development with Japanese enterprise needs.- Founded as part of Oracle's international expansion to serve Japan's enterprise IT market.
- Shifted focus from licensed on‑premise software to cloud infrastructure (IaaS), platform (PaaS) and SaaS offerings over the 2010s-2020s.
- Operates local cloud regions, consulting professional services and partner ecosystems tailored to regulated industries in Japan.
| Metric | Value / Note |
|---|---|
| Ticker (TSE) | 4716.T |
| Majority owner | Oracle Corporation - approx. 74% of shares |
| Public float | Approx. 26% (Tokyo Stock Exchange) |
| Corporate role | Majority‑owned subsidiary with high operational autonomy for Japan |
| Alignment with global | Strategic and product alignment guided by Oracle Corporation headquarters |
| Parent (global) FY2023 revenue | Approx. $51.6 billion (Oracle Corporation consolidated) |
- Oracle Corporation holds roughly 74% of Oracle Corporation Japan, ensuring strategic control and technological alignment.
- About 26% of shares trade on the Tokyo Stock Exchange, providing limited public equity participation and liquidity under ticker 4716.
- Board and executive appointments are coordinated with Oracle Corporation to align Japan strategy with global product roadmaps and investments.
- Bring Oracle's database, enterprise applications and cloud infrastructure to Japanese enterprises with localized support and compliance.
- Accelerate customer cloud migrations, modernize mission‑critical workloads and expand SaaS adoption across finance, HR and industry verticals.
- Support Japan‑specific regulatory, language and integration requirements while leveraging Oracle's global R&D and cloud investments.
- Revenue streams: cloud infrastructure subscriptions (IaaS), platform services (PaaS), SaaS applications (ERP, HCM, CX), on‑premise license/support renewals, and professional services/consulting.
- Go‑to‑market: direct sales to enterprise accounts, channel partners, system integrators and Japan‑specific alliances.
- Local execution: Japan cloud regions, localized data residency, Japanese technical support, and industry‑tailored solutions (manufacturing, finance, public sector).
- Subscription and support: recurring cloud and maintenance contracts that generate high‑visibility, repeatable revenue.
- License sales and renewals: legacy on‑premise commercial base still contributes through multi‑year contracts and upgrades.
- Professional services and implementation: one‑time and ongoing services for migrations, integrations and customization.
- Cross‑sell and upsell: leveraging Oracle's global portfolio to sell cloud infrastructure and SaaS to existing database and applications customers.
Oracle Corporation Japan (4716.T): Ownership Structure
Oracle Corporation Japan (4716.T) positions itself as a trusted technology advisor focused on cloud migration, active data utilization, and AI-enabled digital transformation (DX). The company emphasizes modernizing legacy systems, offering Japan-focused cloud services, and aligning with national digitalization initiatives to contribute to society through technological innovation.
- Mission: Support customers' cloud migration and active data utilization so people can see data in new ways, discover insights, and unlock possibilities.
- Values: Build deep customer trust via a comprehensive product portfolio; act as a trusted technology advisor; contribute to societal progress through innovation.
- Strategic focus: Drive DX to the cloud, promote AI adoption for customers, and provide Japan-tailored cloud services and support for national digitalization.
How it works and makes money: Oracle Corporation Japan sells cloud infrastructure (IaaS), cloud applications (SaaS), licensing and maintenance for enterprise databases and middleware, professional services, and systems integration. Revenue drivers include subscription/cloud contracts, license updates and support, and consulting/implementation fees.
| Metric | Value (approx.) |
|---|---|
| FY (most recent) Revenue | ¥200 billion (approx.) |
| Operating Income | ¥30 billion (approx.) |
| Net Income | ¥20 billion (approx.) |
| Employees (Japan) | ~2,500 |
| Market Cap (Tokyo Exchange) | ~¥600 billion (varies with market) |
Ownership highlights and governance:
- Major shareholder: Oracle Corporation (U.S.) - strategic parent and principal shareholder providing technology, products and global go-to-market alignment.
- Other notable holders: Japanese institutional investors (banks, asset managers), corporate investors, and retail shareholders.
- Corporate governance: Board oversight aligned with Oracle global practices, with local management focused on Japan-specific compliance, data residency and customer support.
Key operational emphases:
- Deliver Japan-focused cloud regions and data residency options to meet regulatory and enterprise requirements.
- Promote AI adoption by integrating Oracle Cloud Infrastructure (OCI) capabilities, autonomous database features, and application-level AI services into customer solutions.
- Support modernization of legacy enterprise systems via migration tools, managed services, and partner ecosystem engagements.
For a fuller historical and financial overview, see: Oracle Corporation Japan: History, Ownership, Mission, How It Works & Makes Money
Oracle Corporation Japan (4716.T): Mission and Values
Oracle Corporation Japan (4716.T) delivers enterprise infrastructure and applications through three core operating segments-Cloud & License, Hardware Systems, and Services-supporting Japanese enterprises across migration, cloud-native development, analytics, and mission-critical on-premise deployments. How It Works- Segments and offerings:
- Cloud & License - SaaS, PaaS, and license support including Oracle Fusion Cloud Applications and Oracle Database subscriptions.
- Hardware Systems - engineered systems and servers optimized for Oracle Database and OCI connectivity.
- Services - consulting, implementation, managed services, and support for cloud migrations and hybrid operations.
- Cloud infrastructure and platform services:
- Oracle Cloud Infrastructure (OCI) - compute, block & object storage, networking, and region presence designed for enterprise workloads and lift-and-shift migrations.
- AI & ML - Oracle provides managed AI/ML services, integrated model orchestration and data-management tooling to run inference and training on OCI.
- Database & developer services - Autonomous Database, Exadata Cloud@Customer, API platform, and developer tooling for Java, Python, and microservices.
- Applications and industry suites:
- Oracle Fusion Cloud Applications - ERP, HCM, SCM, EPM and industry modules with embedded AI for automation (finance close, procurement insights, workforce optimization).
- Hybrid and data-sovereignty strategy:
- Hybrid cloud - OCI plus on-premise Oracle engineered systems (Exadata Cloud@Customer) to support data residency, latency-sensitive workloads, and regulated industries.
- Local partnerships - collaborative initiatives with Japanese firms (notably Fujitsu) such as Oracle Alloy to enable sovereign-cloud architectures that keep data within national boundaries.
| Metric | Value / Note |
|---|---|
| Founding (Oracle corporate) | 1977 (Oakland, California) |
| Oracle Corporation global FY revenue (most recent annual report) | Approximately $56 billion (reported by Oracle Corporation; used as context for Japan operations) |
| Employees (global) | ~143,000 (Oracle corporate headcount reported in recent filings) |
| Oracle Cloud (OCI) adoption indicators | Double-digit annual growth in cloud infrastructure and applications revenue (Oracle's public statements: cloud ARR and subscription growth are material drivers) |
| Japan-specific initiatives | Partnerships with Fujitsu and local systems integrators; regional OCI presence and sovereign-cloud offerings such as Oracle Alloy |
| Primary customer verticals in Japan | Financial services, manufacturing, retail, telecommunications, public sector |
- Subscription and License Revenue:
- Oracle Fusion and SaaS subscriptions - multi-year contracts for ERP, HCM, SCM and industry cloud services.
- Database and middleware licenses - perpetual and term licenses plus ongoing support and updates.
- Cloud Infrastructure (OCI) Consumption:
- Pay-as-you-go and committed-use contracts for compute, storage, networking, managed database and analytics services.
- Hardware and Engineered Systems:
- Sales of Exadata, engineered servers and appliances, often bundled with software and support; in Japan, these are marketed for on-premise and Cloud@Customer scenarios.
- Professional Services and Support:
- Implementation, migration, integration, and managed services delivered by Oracle Japan and partner ecosystem.
- Partner and channel revenue:
- Co-sell and reseller agreements with local systems integrators (e.g., Fujitsu), ISVs, and MSPs expand reach and deliver localized solutions like Alloy for data residency.
| Product / Service | How it generates revenue |
|---|---|
| Oracle Fusion Cloud Applications | Subscription licenses (SaaS), implementation services, and ongoing support/maintenance |
| OCI Compute & Database | Consumption fees, reserved capacity/committed commitments, managed database service charges |
| Exadata / Cloud@Customer | Hardware sales, term licensing, Cloud@Customer subscription and support contracts |
| Professional Services | Time-and-materials and fixed-fee engagements for migration, customization, and managed services |
- Data residency and sovereignty - offering Oracle Alloy and localized OCI regions to meet regulatory and corporate requirements.
- Hybrid-first customer journeys - enabling phased migrations with Cloud@Customer, strong on-premise integration and network peering to minimize disruption.
- AI-enabled applications - embedding machine learning and generative AI features across Fusion Apps and analytics to improve productivity and decisioning.
- Channel-led growth - scaling through local partners (system integrators, MSPs, ISVs) to serve enterprise and public-sector buyers.
Oracle Corporation Japan (4716.T): How It Works
Oracle Corporation Japan (4716.T) operates as the Japanese arm of Oracle's global enterprise software and cloud business, combining on-premises software licensing with rapidly growing cloud infrastructure and platform services. Its business model emphasizes recurring revenue from subscriptions and support, high-margin software sales, and strategic enterprise cloud deployments for Japanese corporations and the public sector.- Primary revenue streams: cloud services & license support, software licenses, and technical support & consulting.
- Customer base: large enterprises, government agencies, and mid-market firms requiring database, ERP, and cloud-ready infrastructure.
- Go-to-market: direct sales force, channel partners, system integrators, and migration programs for customers moving from on-premises to Oracle Cloud.
- Cloud services - subscription fees for Oracle Cloud Infrastructure (OCI), SaaS offerings (ERP, HCM, CX), and platform services billed on recurring contracts and consumption models.
- Software licenses - traditional perpetual and term licenses for databases, middleware, and enterprise applications, often paired with long-term maintenance contracts.
- Technical support & services - annual support contracts, consulting, implementation, and managed services that drive predictable, high-margin recurring revenue.
| Metric | Value |
|---|---|
| Net sales growth (FY ending May 31, 2025) | +7.8% |
| Market capitalization (Dec 17, 2025) | ¥1.74 trillion |
| Dividend (2025) | ¥190 per share |
| Cash & equivalents | ¥91.9 billion |
| Debt | ¥0 (zero debt) |
| Return on Invested Capital (ROIC) | 61.2% |
| EBIT margin | ~33% |
- High gross margins driven by software and cloud SaaS economics, enabling strong EBIT margin (~33%).
- Exceptional capital efficiency demonstrated by ROIC of 61.2%, reflecting strong monetization of intellectual property and low incremental capital requirements for software delivery.
- Prudent balance sheet with zero debt and ¥91.9 billion in cash and equivalents, providing strategic flexibility for product investment, M&A, or shareholder returns (notably a progressive dividend policy: ¥190 in 2025).
- Revenue stability from long-term support contracts and increasing cloud subscription mix that reduces revenue cyclicality tied to large license deals.
Oracle Corporation Japan (4716.T): How It Makes Money
Oracle Corporation Japan (4716.T) leverages Oracle's global technology stack and local delivery to capture enterprise spend across software, cloud infrastructure, consulting and support. Its competitive positioning in Japan is built on deep industry relationships, public-sector contracts, and a focus on high-value services that complement cloud offerings.- Core revenue drivers: enterprise database and middleware licenses, Oracle Cloud Infrastructure (OCI), SaaS (ERP/HCM/CRM), and professional services (consulting, implementation, managed services).
- Differentiation: high-margin consulting and support contracts, long-term maintenance agreements, and tailored hybrid-cloud solutions for regulated industries (finance, manufacturing, government).
- Public-sector footprint: selected as a supplier for Japanese government cloud initiatives, expanding access to large multi-year contracts.
- Strong local market position supported by Oracle's global R&D and Japan-specific go-to-market teams; benefits from Oracle's rising focus on cloud and autonomous technologies.
- Well-placed to capture Japan's enterprise digital transformation - cloud services cited as the primary growth driver for corporate IT budgets.
- Strategic initiatives such as Oracle Alloy (industry-focused cloud/vertical accelerators) and partnerships with local systems integrators deepen market reach and accelerate implementations.
- Operational and strategic decisions are monitored by Oracle Corporation (parent), aligning Japan's investments with global cloud and engineered systems priorities.
| Metric | Value / Estimate | Notes |
|---|---|---|
| Ticker | 4716.T | Tokyo Stock Exchange listing (Oracle Japan) |
| Primary revenue streams | Licenses, Cloud (OCI & SaaS), Support, Consulting | Mixed on-premises and cloud revenue mix |
| Estimated revenue mix (Japan) | Licenses/Support ~45% • Cloud/SaaS ~35% • Consulting/Services ~20% | Estimated based on regional trends toward cloud and services |
| Japan cloud market size (approx.) | ¥2.5-3.0 trillion (2023) | IDC/market estimates for public cloud services in Japan (approx.) |
| OCI growth (global proxy) | ~30-40% year-over-year (recent periods) | Reflects accelerating OCI revenue in Oracle's public disclosures (global) |
- Software licenses: up-front or subscription licensing for databases, middleware and enterprise apps (often multi-year contracts).
- Cloud subscriptions: OCI compute, storage, and SaaS subscriptions billed recurring monthly/annual - main growth vector as customers migrate workloads.
- Support & maintenance: recurring, high-margin revenue tied to installed base - incentivizes retention and upsell to cloud.
- Consulting & integration: professional services for migrations, custom integrations, and managed services - higher-margin in Japan due to specialized local capabilities.
- Public-sector contracts: multi-year procurement deals with predictable revenue and strong renewal potential.
- Accelerating cloud migration of existing on-prem customers to OCI and SaaS to shift mix from one-time license to recurring ARR.
- Deepening industry-specific solutions (Oracle Alloy and vertical partnerships) to shorten sales cycles and increase deal sizes.
- Expanding government and regulated-industry foothold, leveraging compliance certifications and localized cloud regions.
Oracle Corporation Japan (4716.T) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.