SoftBank Group: Q1 FY2027 Earnings Explained (For Beginners 🔰)
Hello. I'm your reporter, Sanaichi.
SoftBank Group, which has a significant influence on the Nikkei Stock Average, announced its financial results for the first quarter of the fiscal year ending March 2027 today. I have summarized these results in an easy-to-understand article for economic beginners. The latest results, announced on August 6, showed an increase in revenue to over 2 trillion yen, while profits decreased compared to the same period last year. Here is a breakdown of the latest developments, which reflect the major moves typical of an investment company.
👉 August 6 Earnings Briefing PDF Link
👉 SoftBank Group 9984 Stock Link
1. Overview of these financial results
Revenue was approximately 2.0196 trillion yen, a 10.9 percent increase compared to the same period last year. On the other hand, net income, which represents the profit of the entire group, was 347.3 billion yen, a 17.7 percent decrease compared to the same period last year.
2. Main reasons for the decrease in profit
The background to the decrease in net income despite the increase in revenue lies in the expansion of various expenses. The main factors are as follows:
・A significant increase in future-oriented investments, primarily in the AI and semiconductor sectors, as well as stock-based compensation expenses for employees.
・The accumulation of financial expenses related to borrowings, losses due to exchange rate fluctuations, and derivative-related losses.
(*This time, the recording of approximately 146 billion yen in foreign exchange losses due to the impact of dollar-denominated debt, etc., was also a factor that pushed down profits.)
On the other hand, investment gains themselves improved significantly due to the rise in stock prices such as Intel, highlighting the characteristic that the value fluctuations of held stocks significantly affect performance.
3. Major money movements and future points of interest
Looking at the movements of cash on hand and assets, expenditures in investment activities have expanded significantly due to additional investments in OpenAI and the acquisition of data center-related assets. Regarding the massive investment in OpenAI, the next major step is scheduled for October 2026. Note that future performance forecasts are not disclosed due to many uncertain factors, and the annual dividend forecast for shareholders is planned to be 11 yen per share, the same level as before.
4. Summary
These financial results showed a decrease in profit due to active investments and expenses aimed at the future, such as in the AI sector, but revenue has firmly maintained the 2 trillion yen scale. The biggest point of interest remains how SoftBank Group, which continues to make huge investments, will connect this to earnings through AI-related businesses and initiatives with OpenAI in the future.
☆ August 6 Briefing PDF Link URL
https://group.softbank/media/Project/sbg/sbg/pdf/ir/financials/financial_reports/financial-report_q1fy2026_01_ja.pdf
☆ https://finance-frontend-pc-dist.west.edge.storage-yahoo.jp/disclosure/20260806/20260805510515.pdf
SoftBank Group Corp. Financial Results Detailed Information
Summary of Q1 Financial Results for the Fiscal Year Ending March 2027
Announcement Date: August 6, 2026
Source Link: Q1 Financial Results for the Fiscal Year Ending March 2027 (PDF)
For the first quarter of the fiscal year ending March 2027, revenue increased by 10.9% year-on-year to 2.0196 trillion yen. While large-scale investment gains from the rise in Intel's stock price contributed, net income attributable to owners of the parent decreased by 17.7% year-on-year to 347.3 billion yen due to a sharp increase in stock-based compensation expenses, as well as the accumulation of financial expenses, foreign exchange losses, and derivative losses.
Main Business Segments
SoftBank Group Corp.'s main reporting segments are four: Investment Business of Holding Companies (direct investment), SoftBank Vision Fund (SVF), SoftBank (domestic telecommunications and IT), and AI Computing (semiconductor-related such as Arm and Ampere).
Main Changes in Business and Operating Results for this Quarter
Revenue for the first quarter of the fiscal year ending March 2027 was 2.0196 trillion yen, an increase of 10.9% year-on-year. Meanwhile, net income attributable to owners of the parent remained at 347.3 billion yen, a 17.7% decrease year-on-year. Total investment gain/loss improved significantly to a profit of 1.8594 trillion yen (compared to 486.9 billion yen in the same period last year), primarily driven by an investment gain of 1.3329 trillion yen due to the rise in Intel's stock price. However, selling, general and administrative expenses swelled to 1.2869 trillion yen, a 69.7% increase year-on-year, due to an increase in stock-based compensation expenses in the AI Computing business and Energy Global. Additionally, financial costs increased by 98.9% to 328.7 billion yen, foreign exchange losses were 146.1 billion yen, and derivative-related losses were 391.6 billion yen, resulting in a profit before income tax of 589.2 billion yen, a 14.6% decrease year-on-year.
Changes in the Balance Sheet
Total assets increased by 7.2% from the end of the previous fiscal year to 65.1352 trillion yen. While SVF investments (FVTPL) increased by 9.1% to 25.635 trillion yen and investment securities increased by 32.4% to 5.6446 trillion yen (mainly due to the rise in Intel's stock price) compared to the end of the previous fiscal year, cash and cash equivalents decreased by 26.8% to 3.9271 trillion yen. Total liabilities increased by 8.7% from the end of the previous fiscal year to 43.7823 trillion yen.
Changes in Cash Flow
Cash flow from operating activities resulted in an expenditure of 439.9 billion yen, a deterioration from the same period last year (expenditure of 270.6 billion yen). Cash flow from investing activities resulted in an expenditure of 2.5422 trillion yen due to additional investment in OpenAI and the acquisition of power generation and data center-related assets, a significant expansion from the same period last year (expenditure of 641.6 billion yen). Cash flow from financing activities was an income of 1.5159 trillion yen, which was at almost the same level as the same period last year (income of 1.4097 trillion yen).
Changes in Earnings Forecasts for the Current and Next Fiscal Year
Full-year consolidated earnings forecasts have not been released due to many uncertain factors. Regarding the additional investment of 30 billion US dollars in OpenAI committed in February 2026, the first and second tranches (10 billion US dollars each) have been completed, and the third tranche (10 billion US dollars) is scheduled for October 2026.
Shareholder Returns
The annual dividend for the fiscal year ending March 2027 is planned to be 11 yen per share (5.5 yen interim, 5.5 yen year-end). In the previous fiscal year (fiscal year ended March 2026), the annual dividend was 11 yen, taking into account the stock split (1 share to 4 shares, implemented in January 2026), and the forecast for this fiscal year is at the same level.
※This article does not recommend the buying or selling of any specific stock. Please make investment decisions at your own responsibility.
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