SoftBank (9434) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of JPY 7,038.7 billion for FY2025, up 8% year-over-year, with all segments contributing to growth and surpassing initial and revised forecasts for the third consecutive year.

• Operating income rose 5% year-over-year to JPY 1,042.6 billion, and net income attributable to owners increased 5% to JPY 550.8 billion, both record highs and exceeding medium-term plan targets.

• All financial and non-financial targets under the previous medium-term plan were exceeded, including renewable energy and carbon neutrality milestones.

• Launched a new medium-term management plan focused on AI-driven business growth, next-generation infrastructure, and sustainability, targeting JPY 1.7 trillion operating income and JPY 700 billion net income by FY2030.

• Major initiatives included investments in HAPS telecommunications, sovereign AI cloud, and the listing of PayPay Corporation.

Financial highlights

• FY2025 revenue rose 8% year-over-year to JPY 7,038.7 billion; operating income up 5% to JPY 1,042.6 billion; net income up 5% to JPY 550.8 billion.

• Free cash flow hit a record JPY 633.6 billion, and dividends were maintained at JPY 8.6 per share, with increases planned.

• Enterprise and distribution segments exceeded JPY 1 trillion in revenue for the first time.

• Financial segment more than doubled its profit year-over-year, driven by PayPay and credit card growth.

• CapEx averaged below JPY 330 billion per year over three years, despite inflation and a weaker yen.

Outlook and guidance

• FY2026 revenue forecasted at JPY 7,500.0 billion (+7%), operating income at JPY 1,100.0 billion (+6%), and net income at JPY 560.0 billion (+2%).

• New medium-term plan targets JPY 1.7 trillion operating income and JPY 700 billion net income by FY2030, aiming for a 10% CAGR.

• Dividends to increase to JPY 8.8 per share in FY2026, with further increases planned as net income grows.

• FY2026/2027 forecast expects continued revenue and profit growth, with enterprise and financial segments driving performance and significant investments in AI infrastructure.

• First half of FY2026 may see profit decline due to non-recurring gains in prior year and deferred acquisition costs, but growth expected in the second half.