SoftBank (9434) investor relations material

Executive summary

• Revenue and profit increased, reaching record Q1 highs and surpassing expectations, with all segments contributing to growth and strong momentum toward full-year forecasts.

• Cloud and AI businesses, now under the Enterprise segment, drove significant revenue and operating income growth, with Enterprise operating income up 28%.

• Strategic growth investments were executed under financial discipline, including debut issuance of euro-denominated senior notes to diversify funding.

• The group is advancing its long-term vision to provide next-generation social infrastructure, focusing on AI-driven growth and digitalization.

Financial highlights

• Revenue rose 9.4% year-over-year to JPY 1,814.7 billion, a record high for Q1, with operating income up 4.0% to JPY 302.3 billion and net income up 3.3% to JPY 150.1 billion.

• Adjusted EBITDA reached a record high of JPY 508.1 billion, up 7.9% year-over-year.

• Free cash flow was negative year-over-year due to active strategic investments and temporary working capital impacts.

• Capital expenditures surged to JPY 332.7 billion, mainly due to telecom facility leasing for OpenFiber Japan Corp.

Outlook and guidance

• Full-year revenue is forecast at JPY 7,500.0 billion (+6.6% YoY), operating income at JPY 1,100.0 billion (+5.5%), and net income at JPY 560.0 billion (+1.7%), with progress rates above 24% for Q1.

• Cloud and AI revenue CAGR forecast raised to 30% for FY2026–FY2027.

• No changes have been made to previously announced forecasts, but upward revision is possible in the second quarter.