SoftBank (9434) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2026 reached JPY 1,814.7 billion, up 9–9.4% year-on-year, with all business segments achieving growth and a record high.

• Operating income was JPY 302.3 billion, up 4–9% year-on-year, overcoming last year's one-time gain impact.

• Net income totaled JPY 150.1 billion, a 3–7% year-on-year increase, with progress toward full-year targets at 27%.

• Strong performance in enterprise, distribution, and financial businesses, with consumer business exceeding expectations despite anticipated challenges.

• Strategic alliances and acquisitions, including with Seven & i Holdings, SP.LINKS, and T&D Financial Life Insurance, support next-generation infrastructure and payment expansion.

Financial highlights

• Enterprise business revenue: JPY 260.4 billion (+11–11.4% YoY); operating income: JPY 62.2 billion (+27–28% YoY).

• Consumer business revenue: JPY 749.7 billion (+4–4.4% YoY); operating income: JPY 152.9 billion (-0.6% to -1% YoY).

• Media and EC business revenue: JPY 446.8 billion (+9.8–10% YoY); operating income: JPY 66.7 billion (excluding one-time, +19% YoY; down 5.7% including one-time factors).

• Financial business revenue: JPY 115.9 billion (+27% YoY); operating income: JPY 31.8 billion (+76% YoY).

• Adjusted free cash flow for Q1 was negative JPY 128.5 billion, mainly due to investment in SB Energy and other strategic investments.

Outlook and guidance

• Cloud and AI segment expected to grow at ~30% annually through FY2027, reaching JPY 430.0 billion.

• Full-year forecasts: revenue JPY 7,500.0 billion, operating income JPY 1,100.0 billion, net income JPY 560.0 billion.

• Considering upward revision to full-year earnings forecast in Q2, factoring in gain on SB Energy sale and strong business performance.

• Patching as a Service (PaaS) expected to contribute to revenue in the second half of the fiscal year, not yet included in forecasts.

• No revisions to previously announced forecasts as of the latest update.