Oracle Japan Shares Surge 7%, Contrasting With Parent's Slump in the US

Oracle Japan shares surged more than 7% in Friday trading (25/9/2026), posting contrarian performance amid a sell-off that weighed on its parent company's shares in the United States. The gain was driven by a record-breaking first-quarter fiscal earnings report, with revenue and profit reaching the highest levels in the company's history.

The company announced that net sales for the June-August period reached 74.86 billion yen (around US$472 million), up 13% compared with the same period last year. Operating profit jumped 22.7% to 25.92 billion yen, while net profit grew 23.2% to 18.25 billion yen. All of those profitability metrics were the best for a first fiscal quarter.

Nevertheless, the euphoria in Tokyo did not align with the fate of Oracle shares traded in the US. Its parent company's stock on Wall Street instead slumped more than 3% in the previous session after the company sent a force majeure notice related to a data center project in New Mexico. Such a step usually signals operational disruption or a force majeure event hindering the fulfillment of contractual obligations.

The main driver of Oracle Japan's performance was its cloud business, which grew 31.7% to 25.14 billion yen, raising its share of total revenue from 28.8% to 33.6%. The company stated that strong demand for cloud infrastructure had increased utilization of its data centers in Tokyo and Osaka. Oracle Japan also plans to expand its sovereign cloud offerings and strengthen AI solutions in the domestic market.

The company maintained its full-year sales growth projection in the 6-10% range. This step shows management's confidence in the business outlook in Japan, despite pressure from global operations. Since 2024, Oracle has committed to investing more than US$8 billion in cloud and AI infrastructure in Japan over a decade. SoftBank has also launched sovereign cloud and generative AI services using Oracle technology.

"Strong cloud infrastructure demand has driven usage of our data centers in Tokyo and Osaka," said an Oracle Japan representative, adding that the company will continue to expand sovereign cloud services and AI solutions in Japan.

For Indonesia, this dynamic highlights the importance of data sovereignty and local cloud infrastructure. As global technology giants such as Oracle and SoftBank aggressively pursue sovereign cloud in Japan, Indonesia is also accelerating the construction of national data centers and promoting domestic cloud use. The personal data protection policy (UU PDP), which has begun to take effect, can be a catalyst for technology companies to place servers domestically, opening opportunities for investment and partnerships with global providers.

In addition, Oracle's cloud growth in Japan could be an indicator that demand for AI and cloud services in Asia Pacific remains resilient, regardless of turbulence in the US market. Indonesian investors with exposure to the technology and digital infrastructure sectors can watch whether a similar trend will occur in the region, especially with the rising adoption of generative AI among local companies.

Going forward, the crucial question is whether Oracle Japan can maintain its cloud growth momentum amid global uncertainty and potential disruptions to the data center supply chain. If successful, this step could become a blueprint for sovereign cloud expansion in Southeast Asian countries, including Indonesia, which is building the foundations of its digital economy.