SoftBank Group (9984) Q3 2025 earnings summary

Executive summary

• Net income attributable to owners was ¥636.2 billion for the nine months ended December 31, 2024, a ¥1,094.9 billion improvement year-over-year, driven by strong investment gains, especially from Arm, T-Mobile, and Alibaba, and improved segment performance.

• Net asset value reached JPY 33.5 trillion, near record highs, with significant contributions from Arm and T-Mobile.

• Major AI initiatives launched, including the $500 billion Stargate project and Crystal Intelligence, in partnership with OpenAI and other global leaders.

• Net sales increased 6.0% year-over-year to ¥5,302.6 billion, with growth in the SoftBank and Arm segments.

• Strategic investments in AI, data centers, and energy, with a focus on long-term value creation and portfolio monetization.

Financial highlights

• Income before income tax surged 381.3% year-over-year to ¥1,270.9 billion, mainly due to ¥2,170.0 billion in investment gains.

• Net income improved by ¥1,094.9 billion year-over-year, reflecting strong investment performance and FX effects.

• Gross profit increased to ¥2,785.0 billion, with notable gains from Alibaba (¥902.9 billion) and T-Mobile (¥751.9 billion).

• Arm segment reported $2,766 million in net sales and $964 million in non-GAAP gross profit for Q3 FYE25, with a 98% gross margin.

• Cash position rose to JPY 5 trillion, maintaining a conservative loan-to-value ratio of 12.9%.

Outlook and guidance

• Continued focus on AI infrastructure and technology investments, with the Stargate project targeting $500 billion in deployments over four years.

• Arm's 2024 revenue guidance set at $3.94–$4.40 billion, with non-GAAP EPS of $1.56–$1.64.

• Ongoing commitment to maintain LTV below 25% and at least two years of bond redemption in cash.

• Anticipates acceleration in investment pace, especially in AI and data center projects.