Return to Profitability
SoftBank reported a net income of JPY 1.15 trillion, marking its first profit in four years, up JPY 1.38 trillion year-over-year.
Softbank
· SFTBY
May 13th, 2026
Summary
- Earnings Call Date:
- 2026-05-13
- Change Since:
- +2.19%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
NeutralSoftBank's earnings call highlighted a return to profitability and strong performance in several areas, including Vision Fund 1, PayPay, and Arm. However, challenges such as a decrease in net asset value, increased loan-to-value ratio, and decreased cash position were noted. The company's strategic investments in OpenAI and Ampere were emphasized as critical for future growth.
Company Guidance
In the call, SoftBank Group Corp. provided comprehensive guidance for the fiscal year ended March 31, 2025, detailing several key financial metrics and strategic initiatives. The company reported a net asset value of JPY 25.7 trillion, down JPY 2.1 trillion year-over-year, but noted a recovery to JPY 27.4 trillion based on current share prices. They achieved a net income of JPY 1.15 trillion, marking their first profit in four years, driven by gains in their investment portfolio, particularly from Vision Fund contributions like ByteDance and OpenAI. Their loan-to-value ratio increased to 18.0%, still below their 25% safety threshold, while cash on hand decreased to JPY 3.4 trillion. Strategic actions included significant investments in AI, such as a JPY 6.5 billion acquisition of Ampere and a commitment of up to $30 billion in OpenAI. SoftBank also highlighted the Stargate Project in collaboration with OpenAI and Oracle, and the establishment of Cristal Intelligence through a partnership with OpenAI, reflecting their focus on AI and technological advancement.
Strong Performance of Vision Fund 1
Vision Fund 1 saw a significant contribution primarily from ByteDance, contributing to the overall gain on investments.
PayPay's Growth
PayPay achieved an EBIT of JPY 45 billion and GMV of JPY 15.4 trillion, a 23% increase year-on-year, with plans for an IPO.
Arm's Record High Revenue
Arm posted record high annual revenue, with a 31% increase in non-GAAP operating income year-on-year.
OpenAI Investment Commitment
SoftBank committed up to $30 billion in follow-on investments in OpenAI, emphasizing its strategic importance.
Acquisition of Ampere
SoftBank announced the acquisition of Ampere for $6.5 billion, aiming to enhance its capabilities in AI and semiconductor design.
Unidentified Company Representative
Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Corp. earnings results announcement for the fiscal year ended March 31, 2025. First of all, I would like to introduce today's participants. From left, we have Yoshimitsu Goto, Board Director and CFO; Kazuko Kimiwada, Corporate Officer; Chief Sustainability Officer, Senior Vice President and Head of Accounting Unit; Navneet Govil, CFO; SB Investment Advisers and SB Global Advisers; Jason Child, Executive Vice President and CFO Arm. Today's announcement is live broadcast over the Internet. Now I would like to invite Yoshimitsu Goto to present you the earnings results and business overview.
Yoshimitsu Goto
Good afternoon, everyone. Thank you very much for sharing the time with us today. So today is kind of a summary for the fiscal year, a whole year, full year. So let me dive into presentation. So the past 1 year, economical trend, market environment, it's been very uncertain, very unclear, continues to grow. U.S. tension has been escalated. Market, including Japan, has been confused with the situation.
At the same time, unfortunately, we've been seeing the ongoing conflicts across the regions. And after Mr. Trump assumed President, there are many policies, direction changes, which also impacted to the market. But of course, leaders, head of the countries, they always focus on the prosperity of their own country. But when you think about the worldwide peaceful system optimal for everyone, which everyone has been enjoying the free trade in the past, but the free trade also making some disadvantage as well....
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