⚠ Two Listed Subsidiaries Oracle Does Not Fully ControlLow threat

Oracle (ORCL) — threat to the moat

Some of Oracle's stickiest banking software sits in a company listed in India, where other shareholders share the profits and the decisions.

Oracle owns majority stakes in two listed companies: Oracle Financial Services Software, which trades in India, and Oracle Corporation Japan1. Its annual report lists as a risk "being unable to exert full control" over them2.

Majority-owned listed subsidiariesOracle Financial Services Softwarelisted in IndiaOracle Corporation Japanlisted in JapanOracle employees outside the USabout 92,000 of 141,000Oracle Form 10-K FY2026; Q1 FY2027 10-Q
Control that is shared.

The financial effect is visible in the accounts. Oracle's non-operating income includes the noncontrolling interests in the net profits of its majority-owned subsidiaries, primarily Oracle Financial Services Software and Oracle Corporation Japan3, so part of their profit belongs to other shareholders.

For the moat the issue is narrower. Banking software is one of the stickiest applications Oracle sells, because a bank's core systems are the last thing it wants to replace. Some of that franchise sits in a company where minority shareholders and Indian listing rules have a say in decisions such as dividends and related-party dealings.

Japan is also one of Oracle's larger single markets. It produced $1,870 million of revenue in fiscal 2026, and Oracle held $3,183 million of long-lived assets there4. Part of that business sits inside a company with outside shareholders, which is a small but permanent constraint on how freely Oracle can reorganise it.

This is a small threat by Oracle's standards. It would grow only if Oracle wanted to fold these businesses fully into its cloud and found the minority shareholders in the way. A buyout offer for either company would be the sign that it has decided the control matters.

References
  1. ReportedOracle owns majority stakes in two listed companies: Oracle Financial Services Software, which trades in India, and Oracle Corporation Japan.
    Oracle Corporation Form 10-K for fiscal 2026 (year ended 31 May 2026) - Item 1A risk factors: customer concentration and credit, multicloud, lease terms, credit ratings, export rules. — FY2026 · publ. 22 June 2026 · source ↗
  2. ReportedIts annual report lists as a risk "being unable to exert full control" over them.
    Oracle Corporation Form 10-K for fiscal 2026 (year ended 31 May 2026) - Item 1A risk factors: customer concentration and credit, multicloud, lease terms, credit ratings, export rules. — FY2026 · publ. 22 June 2026 · source ↗
  3. ReportedOracle's non-operating income includes the noncontrolling interests in the net profits of its majority-owned subsidiaries, primarily Oracle Financial Services Software and Oracle Corporation Japan, so part of their profit belongs to other shareholders.
    Oracle Form 10-Q for the quarter ended 31 August 2026 - segments, leases not yet commenced, the ATM share programme, RPO timing and shares outstanding. — Q1 FY2027 · publ. 11 September 2026 · source ↗
  4. ReportedIt produced $1,870 million of revenue in fiscal 2026, and Oracle held $3,183 million of long-lived assets there.
    Oracle Corporation Form 10-K for fiscal 2026 (year ended 31 May 2026) - geographic information: revenue and long-lived assets by region and country. — FY2026 · publ. 22 June 2026 · source ↗
Sources
Generated September 25, 2026