SoftBank Group reported a net profit of 347.3 billion yen ($2.2 billion) for its fiscal first quarter ending June 2026, beating analyst estimates despite an 18% year-on-year decline. Earnings were bolstered by a massive 1.3 trillion yen ($8.2 billion) gain on its Intel stake and a $2.2 billion valuation increase for ByteDance. However, SoftBank's stock fell 4% in Tokyo as its OpenAI valuation remained flat, its AI computing segment posted a 200.8 billion yen loss, and investors grew concerned over portfolio concentration.
SoftBank Q1 2026 earnings
- ▪SoftBank Group reported a net profit of 347.3 billion Japanese yen ($2.2 billion) for its fiscal first quarter ending June 2026, representing an 18% year-on-year decline.
- ▪SoftBank Group's fiscal first-quarter net profit of 347.3 billion yen beat the 120.23 billion yen expected by analysts surveyed by LSEG.
- ▪SoftBank Group's quarterly sales rose nearly 11% year-on-year to 2 trillion yen ($12.7 billion) during the April-June 2026 period.
Intel stake gains
- ▪SoftBank Group's Vision Funds segment posted a 5.4 billion yen profit for the fiscal first quarter, down from 451.4 billion yen in the same period last year.
- ▪SoftBank Group's investment division, which is separate from the Vision Fund, booked a segment profit of 1.05 trillion yen, aided by its Intel investment.
ByteDance valuation increase
- ▪SoftBank Group's Vision Funds recorded a $1.7 billion gain in value in the first quarter, driven by a $2.2 billion increase in the valuation of its stake in ByteDance.
- ▪SoftBank Group reported no investment gain or loss related to its stake in OpenAI during the fiscal first quarter ending June 2026.
OpenAI investment unchanged
- ▪SoftBank Group's share price closed 4% lower in Tokyo trading on August 6, 2026, following the earnings release.
- ▪SoftBank Group has committed to invest more than $60 billion in OpenAI, with $55 billion already invested as of February 2026.
Share price decline concerns
- ▪SoftBank Group's share price has fallen approximately 34% from its record high in June 2026 amid investor concerns over portfolio concentration in Arm and OpenAI.
- ▪SoftBank Group's AI computing segment, which includes Arm, Graphcore, and Ampere, posted a 200.8 billion yen loss for the quarter due to higher research and development costs.
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