ORACLE CORPORATION JAPAN Q2 FY2026 earnings call

• Achieved excellent Q2 results, especially in cloud business, reinforcing leading cloud vendor position. • Shifted focus to cloud but maintained steady license order intake. • Announced partnership with SoftBank to offer services with data sovereignty, with SoftBank launching Cloud PF type A in April 2026 and rolling out AI services. • Examples of customers: ITOKI Corporation developed predictive maintenance system using Oracle AI tech; Neo First Life Insurance adopted Oracle Database at Azure for policy management; Tokio Marine Holdings implemented Oracle Fusion Cloud EPM for global management.

Total revenue was JPY 134.677 billion, growing at 7.5%. Cloud revenue was JPY 39.129 billion, up 38.3% and representing 29% of total company revenues. Operating income was JPY 42.659 billion, increasing 1.8%. Net income was JPY 29.913 billion, up 1.9%.

• Intends to stick with revenue guidance for the year. • Robust pipeline for the second half. • License pipeline strong in second half; expects license to decline slightly but cloud revenue growth will overcome decline.

Q: About AI-related revenue and breakdown of percentage as well as growth rate A: We don't break down revenues by AI as AI is embedded in all products; AI drives future growth in Japan Q: Elaborate on second half pipeline, license pipeline strength A: Pipeline is a mixture; strong license pipeline in second half; license expected to decline slightly but cloud growth will overcome decline Q: Concerns about parent company financing and impact on Oracle Japan A: Oracle Japan is independent, finances its own growth; parent company's actions don't impact Oracle Japan's independent business Q: First half personnel cost increase, forecast for second half expenses A: Overall expenses don't see extraordinary changes; first half personnel expenses had one-time restructuring; normal increases for growing business