Sustaining cloud growth and monetising AI and multicloud are the key points to assess in FY27-Q1

Full-year FY26 revenue was ¥285,073 million, up 8.2% year on year. Cloud revenue was ¥83,184 million, up 34.3%, and accounted for 29.2% of total revenue. Software revenue, by contrast, was ¥161,297 million, up just 0.1%, making it clear that cloud led overall revenue growth. In the first half of FY26, cloud revenue was also growing rapidly, at ¥39,129 million, up 38.3% year on year, with a 29.1% share of total revenue.

The company identifies OCI, Fusion Cloud Applications, NetSuite, Government Cloud, and hybrid multicloud as priority areas within its cloud business. For FY27, it has presented a new message that addresses not only value creation through AI but also requirements for data protection and security, and indicated a policy of providing AI Database, OCI, Fusion Applications and NetSuite on an integrated basis. This indicates a shift in focus from simple cloud migration toward expanding usage to include AI workloads and business applications.

In addition, the strategic collaboration with AWS was expanded in August 2026. Oracle AI Database@AWS became available in 22 regions worldwide, and general availability began for Exadata Database Service on Exascale Infrastructure. However, the company has not disclosed the number of domestic customers, the value of AI-related contracts, GPU or database usage, or revenue and gross profit from AI services on a standalone basis. Accordingly, the collaboration and new product announcements should not themselves be treated as evidence of earnings contribution. The key question for FY27-Q1 is whether specific details will be provided on project development in Japan, implementation cases and the contribution to cloud revenue.

At the next results announcement, the short-term benchmarks will be whether cloud revenue can maintain the 34.3% year-on-year growth rate and whether its share can exceed 29.2%. In addition, it will be important to see whether KPIs such as revenue, customer numbers, usage and order backlog related to AI, OCI and the AWS collaboration are disclosed. If these are not disclosed and only the cloud growth rate slows, AI strategy monetisation may still be at the proof-of-concept stage.