SoftBank (9434) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2026 reached JPY 1,814.7 billion, up 9–9.4% year-on-year, with all business segments achieving growth and record highs.

• Operating income was JPY 302.3 billion, up 4–4.0% year-on-year, overcoming last year's one-time gain impact.

• Net income totaled JPY 150.1 billion, a 3–3.3% year-on-year increase, with progress toward full-year targets at 27%.

• Strong performance in enterprise, distribution, and financial businesses, with consumer business exceeding expectations despite anticipated challenges.

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

Financial highlights

• Enterprise business revenue grew 11–11.4% year-on-year to JPY 260.4 billion; cloud and AI segment revenue up 31%.

• Consumer business revenue rose 4–4.4% to JPY 749.7 billion; mobile service revenue increased by JPY 3 billion.

• Media and EC business revenue up 9.8–10% to JPY 446.8 billion; operating income up 19% year-on-year excluding one-time factors.

• Financial business revenue surged 27% to JPY 115.9 billion, with operating income up 76% to JPY 31.8 billion, driven by PayPay.

• Adjusted EBITDA increased 7.9% year-on-year to JPY 508.1 billion.

Outlook and guidance

• Fiscal year ending March 31, 2027, forecasts: revenue JPY 7,500.0 billion (+6.6%), operating income JPY 1,100.0 billion (+5.5%), net income JPY 560.0 billion (+1.7%), and basic EPS JPY 11.54.

• Cloud and AI business expected to grow at ~30% annually through FY2027, reaching JPY 430.0 billion.

• No revisions to previously announced forecasts.

• Potential upward revision to full-year forecast will be considered after Q2, factoring in asset sale gains and business performance.

• Second quarter will face tough comparisons due to prior year one-time gains, but management is determined to overcome.