Oracle Corporation Japan's annual securities report for the year to May 2026 shows cloud computing has become the company's fastest-growing business, and shareholders are getting an unusually large one-off dividend on top of steady profit growth.
Net sales rose 8.2% to ¥285.1bn. Cloud revenue jumped 34.3% to ¥83.2bn and now accounts for 29.2% of total sales, up from 23.5% a year earlier and 19.7% two years before that. Software licensing and support, the company's larger legacy business, grew just 0.1% to ¥161.3bn, so essentially all of the growth is coming from cloud migration rather than new license sales.
Ordinary profit rose 4.5% to ¥91.4bn and net income rose 4.6% to ¥63.5bn, both records for the Tokyo-listed subsidiary.
The bigger number for shareholders is the dividend. The board declared a total payout of ¥858 a share, made up of an ordinary dividend of ¥198 and a special dividend of ¥660, against ¥190 a share, all ordinary, the year before. The payout ratio, dividends measured against net income, jumped to 173.0% from 40.1%, meaning the company is returning more cash than it earned in profit this year. The board approved a total dividend outlay of ¥110.1bn at its July 23 meeting.
| Fiscal year ended | Dividend per share (¥) | Special dividend included (¥) | Payout ratio (%) |
|---|---|---|---|
| Year to May 2022 | 160 | — | 40.0 |
| Year to May 2023 | 162 | — | 39.9 |
| Year to May 2024 | 674 | 500 | 155.2 |
| Year to May 2025 | 190 | — | 40.1 |
| Year to May 2026 | 858 | 660 | 173.0 |
It is not the first time Oracle Japan has paid a special dividend: the year to May 2024 included a ¥500 special payout within a ¥674 total. The filing does not explain what triggered either special dividend. Oracle Japan reports on a non-consolidated basis, since the company has no subsidiaries of its own; its ultimate parent, Oracle Corporation, is listed in New York.