SoftBank Group Corp. reported its first net loss in nearly two years on Tuesday, logging a ¥1.12 trillion ($7.1 billion) deficit for the fiscal second quarter.
The Japanese investment giant absorbed a $3.7 billion writedown tied to U.S. data center projects. Analysts on average had expected a profit of 129 billion yen.
Power Equipment Procurement Adjustments Cause 597.2 Billion Yen Loss
The company recorded a 597.2 billion yen ($3.7 billion) loss in the six months ending on September 30 due to adjustments in procurement plans for power generation equipment. SoftBank made non-refundable advance payments to secure equipment and manufacturing capacity for its 8-gigawatt Ohio project and other U.S. data centers.
Chief Financial Officer Yoshimitsu Goto said the company revised its procurement strategy after reserving manufacturing capacity. We’ve decided to conduct a thorough reassessment,
Goto said during an earnings conference Tuesday. He added that We need to watch closely
the impact of the U.S. midterm elections on artificial intelligence sentiment.
Revenue stood at 2.22 trillion yen in the quarter, compared with LSEG estimates of 2.02 trillion yen. SoftBank Group announced its consolidated financial results for the second quarter and first half of fiscal year 2026, ending September 30, 2026.
Vision Fund Segment Swings to Loss Amid Stock Declines
SoftBank’s Vision Fund segment swung to a loss of 81.58 billion yen in the fiscal second quarter, compared with a profit of 2.38 trillion yen a year earlier. Vision Fund 1 recorded an investment loss of $20 million. Declines in the stock prices of chipmakers Arm Holdings Plc and Intel Corp., along with e-commerce firm Coupang Inc., dragged down the company’s bottom line.
The Vision Funds segment recorded investment gains of 85.45 billion yen, down sharply from 2.81 trillion yen in the year-earlier period. The Vision Fund segment, which oversees stakes in hundreds of tech startups, logged a loss of 81.6 billion yen, compared with market expectations for a profit.
As of September 30, SoftBank’s cumulative investment in OpenAI stood at $54.6 billion, with a fair value of $99.6 billion and a cumulative investment gain of $45 billion. SoftBank’s loan-to-value ratio stood at 15.9 per cent at the end of September, well below the 25 per cent threshold set to ensure financial stability.
Founder Masayoshi Son’s aggressive artificial intelligence strategy includes sweeping bets on semiconductors, data centres, and AI infrastructure alongside its massive investments. OpenAI raised about $11 billion at a $1.25 trillion valuation, after initially seeking $30 billion at a $1.4 trillion value.
SoftBank shares closed 13.9% higher on Tuesday in Tokyo.