SoftBank (9434) Q1 2026 earnings summary

Executive summary

• Revenue for the first quarter of FY2025 was JPY 1,658.6 billion, up 8% year-on-year, with all business segments reporting growth.

• Operating income exceeded JPY 40 billion, up 6% year-on-year excluding one-time factors, but declined 4.3% to JPY 290.7 billion including all items.

• Net income, excluding one-time factors, increased by 1% year-on-year to JPY 145.3 billion, but fell 10.6% including all items due to higher taxes and lower operating income.

• All segments saw revenue growth, with notable profit increases in Enterprise, Distribution, and Financial segments.

• Major acquisitions included BEENOS Inc. and LINE Bank Taiwan Limited, expanding e-commerce and financial services.

Financial highlights

• Revenue: JPY 1,658.6 billion (+8% YoY); operating income: JPY 290.7 billion, up 6% YoY excluding one-time factors.

• Net income: JPY 145.3 billion, up 1% YoY excluding one-time factors, down 10.6% including all items.

• PayPay's gross merchandise value rose 24% YoY to JPY 4.5 trillion; PayPay EBITDA up 87% to JPY 21.9 billion.

• Total assets increased 6% to JPY 17,062.2 billion; capital expenditures were JPY 182.8 billion, down YoY.

• Free cash flow was negative JPY 147.6 billion, but adjusted free cash flow was positive JPY 86.3 billion.

Outlook and guidance

• Full-year forecasts: revenue JPY 6,700.0 billion (+2.4%), operating income JPY 1,000.0 billion (+1.1%), net income JPY 540.0 billion (+2.6%), EPS JPY 11.22.

• Progress toward full-year forecast: 25% for revenue, 29% for operating income, 27% for net income.

• Management expects a rebound in consumer business and maintains full-year growth outlook.