SoftBank Group (9984) Q2 2025 earnings summary

Executive summary

• Net income for the first half of FY2024 exceeded ¥1,005.3 billion, a turnaround from a ¥1,408.7 billion loss a year earlier, driven by strong gains from Vision Fund, T-Mobile, and Arm's robust performance.

• Net asset value remained high at ¥29 trillion as of September, supported by robust cash reserves and ongoing AI investment focus.

• Arm delivered record revenue and operating income growth, exceeding guidance and showing resilience post-IPO, with technology adoption expanding across sectors.

• Major investment gains were recorded from Alibaba and T-Mobile, though offset by significant derivative losses on Alibaba-related contracts.

• Vision Fund 1 and 2 both showed improved performance, with Vision Fund 2 making major new AI investments, including $500 million in OpenAI.

Financial highlights

• Net sales rose to ¥3,469.9 billion in H1 FY2024, up ¥242.9 billion year-over-year, with net income attributable to owners at ¥1,005.3 billion.

• Investment gains reached ¥2,651.0 billion, up ¥3,614.6 billion year-over-year, mainly from Vision Fund and T-Mobile.

• Quarterly investment gains exceeded ¥2 trillion, with Vision Fund contributing ¥567 billion and T-Mobile ¥387 billion.

• Cash and cash equivalents at period end were ¥4,476.3 billion, with recent improvements pushing cash above ¥4 trillion.

• Loan-to-value ratio improved to below 12.5%, indicating strong financial stability.

Outlook and guidance

• Arm projects Q3 FY2024 revenue of $920–$970 million (+12–18% YoY) and full-year revenue of $3.8–$4.1 billion (+18–27% YoY).

• Arm expects non-GAAP fully diluted EPS of $1.45–$1.65 for FY2024.

• Management remains focused on AI investments and is prepared to capitalize on future opportunities as financial stability strengthens.