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, improved segment performance, and major AI initiatives including the Stargate project and Crystal Intelligence in partnership with OpenAI and others.

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

• Chairman Masayoshi Son is now dedicated exclusively to AI, with the group aiming to minimize the time to Artificial Superintelligence (ASI).

• Significant investment gains were recorded on Alibaba and T-Mobile shares, partially offset by derivative losses related to prepaid forward contracts.

• The group executed significant investments in AI, autonomous driving, and renewable energy, and completed key acquisitions including SBE Global and Graphcore.

Financial highlights

• Net income for the nine months ended December 31, 2024: ¥636.2 billion, up ¥1,094.9 billion year-over-year, reversing a loss in the prior year.

• 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 asset value (NAV) at December end: just under ¥30 trillion; latest figure post-quarter: ¥33.5 trillion, near record high.

• Cash position increased to ¥5 trillion, with ample liquidity and a loan-to-value (LTV) ratio of 12.9%.

• 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.

Outlook and guidance

• Continued investment in AI infrastructure and technologies, with a focus on growing NAV and maintaining financial discipline.

• Stargate project to deploy $100 billion initially, scaling up to $500 billion over four years, with project-by-project financing.

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

• SoftBank Group maintains a strong cash position of ¥5.0 trillion, ample for over two years of bond redemptions, and plans to continue strategic investments in AI and technology.