SoftBank Group (9984) Q1 2027 earnings summary

Executive summary

• Achieved record net asset value (NAV) of ¥72.3 trillion at end of June 2026, up ¥32 trillion quarter-over-quarter, though pro forma NAV later declined to ¥58.3 trillion, still historically high.

• Net sales rose 10.9% year-over-year to ¥2,019.6 billion, driven by growth in SoftBank and AI Computing segments.

• Net income attributable to owners was ¥347.3 billion, down 17.7% year-over-year, impacted by higher expenses and derivative losses.

• Major strategic focus on AI infrastructure, with $20 billion invested in OpenAI this quarter and a third $10 billion tranche planned, plus a 5 GW AI data center project in France.

• Total comprehensive income rebounded to ¥988.5 billion, aided by foreign currency translation gains.

Financial highlights

• Investment gains for the quarter reached ¥1,859.4 billion, mainly from Intel and ByteDance, up ¥1,372.4 billion year-over-year.

• Net sales: ¥2,019.6 billion (+10.9% YoY); gross profit: ¥1,053.6 billion (+10.4% YoY).

• Net income attributable to owners was ¥347.3 billion, a decrease of ¥74.5 billion year-over-year.

• NAV reached an all-time high of ¥72.3 trillion, with LTV at a safe 13.0% and cash position at ¥2.3 trillion.

• Cash position decreased from ¥3.5 trillion to ¥2.3 trillion due to bond redemptions and investments.

Outlook and guidance

• Arm projects Q2 FY2026 revenue of $1.38 billion (+21.6% YoY) and EPS of $0.47 (+20.5% YoY), both above analyst consensus.

• Arm AGI CPU demand expected to double beyond fiscal 2028, with current orders exceeding $2 billion.

• Continued focus on AI infrastructure, data centers, and expanding AI platform capabilities.

• No consolidated earnings forecasts provided due to uncertainties affecting earnings.