SoftBank Group (9984) Q1 2026 earnings summary

Executive summary

• Net income reached ¥421.8 billion in Q1 FY2025, a significant turnaround from a loss of ¥174.3 billion a year ago, driven by strong Arm share performance, Vision Fund gains, and investment activity in OpenAI.

• NAV rose to ¥32.4 trillion, up ¥6.7 trillion quarter-on-quarter, with LTV improving to 17.0% and a strong cash position despite major investments.

• Strategic focus on AI, leveraging investments in Arm and OpenAI as primary growth drivers, with robust capital recycling and innovation.

• Vision Fund portfolio showed strong recovery, with notable IPOs and positive investment returns.

• Comprehensive income was negative ¥96.7 billion, mainly due to foreign exchange translation losses from yen appreciation.

Financial highlights

• Net sales: ¥1,820.3 billion (+7.0% YoY); net income: ¥421.8 billion (vs. loss of ¥174.3 billion YoY); EPS: ¥291.71.

• Income before income tax: ¥689.9 billion, up ¥464.2 billion year-on-year.

• NAV: ¥32.4 trillion as of June 30, 2025, up from ¥25.7 trillion at March 31, 2025.

• Loan-to-value improved to 17%, maintaining a stable financial base.

• Cash and cash equivalents increased to ¥4,186.0 billion.

Outlook and guidance

• Arm Q2 FY2025 revenue expected at $1.01–$1.11 billion, implying 19.7%–31.5% year-on-year growth.

• Non-GAAP fully diluted EPS for Arm forecasted at $0.29–$0.37 for Q2 FY2025.

• OpenAI's ARR projected to reach $12 billion, up from $5.5 billion in December 2024.

• Project Stargate maintains a ¥500 billion investment target over four years, with ongoing site selection and construction.

• Dividend forecast maintained at ¥44.00 per share for the fiscal year.