SoftBank posts first quarterly net loss in nearly two years, dragged down by Intel and data centers.

BlockBeats news, November 10 - SoftBank Group today announced its consolidated financial results for the second quarter and first half of fiscal year 2026 (April 1 to September 30, 2026) ended September 30, 2026. First-half net sales reached ¥4.235 trillion, up 13.3% year-on-year; pre-tax loss was ¥438.7 billion, and net loss attributable to owners of the parent was ¥768 billion, compared with pre-tax profit of ¥3.6864 trillion and net profit attributable to owners of the parent of ¥2.9241 trillion in the same period last year. Basic earnings per share were -¥136.47 (reflecting the impact of the 1-for-4 stock split implemented on January 1, 2026). The second quarter alone recorded a net loss attributable to owners of the parent of approximately ¥1.12 trillion (about $70 billion), marking the first quarterly net loss in nearly two years.

According to LSEG data, the quarterly loss for the period ended September was the first in nearly two years and fell far short of analysts' expectations of ¥84 billion in profit. By comparison, profit in the previous quarter was ¥347.3 billion, and profit in the same period last year was ¥2.5 trillion.

The group's tech-heavy Vision Funds recorded investment gains of ¥85 billion, but overall group results were dragged down by the following factors: ¥597.2 billion ($37 billion) in expenses related to U.S. data center procurement, high financing costs, and a ¥270.1 billion loss from valuation changes in its Intel shares and related derivatives.

The earnings report showed that SoftBank's first-half investment gains were ¥1.7258 trillion, down sharply from ¥3.9267 trillion in the same period last year. Among these, the holding company's investment business contributed about ¥1.0783 trillion in investment gains, mainly from gains on Intel shares; SoftBank Vision Fund business contributed about ¥705.6 billion in investment gains. The main reasons for the swing from profit to loss include a significant increase in selling, general and administrative expenses (mainly due to higher equity incentive expenses in the AI computing business and the Energy Global segment), higher financial expenses, derivative-related losses of about ¥433.3 billion, and approximately ¥597.2 billion in losses recognized due to adjustments to the procurement plan for power generation equipment required for the U.S. AI data center project.

In terms of strategic deployment, the company completed in October 2026 the previously committed additional $30 billion investment in OpenAI. As of September 30, cumulative investment amounted to $54.6 billion, with a fair value of $99.6 billion and cumulative unrealized investment gains of $45 billion (valuation unchanged from the end of the previous fiscal year). After completion of the third $10 billion investment, total cumulative investment reached $64.6 billion, with an ownership stake of approximately 13%. In addition, the company completed the full acquisition of DigitalBridge Group, Inc. on September 30 for consideration of approximately $3.1 billion, further strengthening its investment capabilities in digital infrastructure such as data centers, communication towers, and fiber optic networks. Semiconductor-related businesses including Arm have been incorporated into the newly established AI Computing reporting segment, with related sales performance remaining strong. The company did not provide consolidated business forecasts, and the interim dividend remained at ¥22 per share (pre-split basis).

SoftBank Group stated it will continue to focus on the long-term strategic layout of AI and related infrastructure. The company will hold an earnings briefing on the same day, and relevant materials can be found on its official website. This press release is based on the company's publicly disclosed financial reports, and actual results may differ from expectations due to various factors.