SoftBank announced first-quarter financial results for its fiscal year that exceeded analyst projections, with net profit reaching 347.3 billion yen compared to expected earnings of 120.23 billion yen. The results represented an approximately 18% decline compared to the same period the previous year.
The company’s investment division, which operates separately from its Vision Fund operations, generated 1.05 trillion yen in segment profit, largely due to a 1.3 trillion yen gain on its holdings in Intel. SoftBank had committed approximately $2 billion to the chipmaker in the prior year, and Intel shares appreciated nearly 400% over the preceding 12 months.
Meanwhile, the Vision Funds segment, which holds stakes in companies ranging from OpenAI to ByteDance, recorded a 5.4 billion yen profit, a significant decline from 451.4 billion yen in the year-ago quarter. The segment posted a $1.7 billion gain in overall value during the quarter, primarily attributable to a $2.2 billion increase in the valuation of ByteDance. Notably, SoftBank recorded no gain or loss from its OpenAI investment, marking a shift from the previous quarter when the Vision Funds had generated nearly $20 billion in gains almost entirely from OpenAI.
SoftBank’s AI computing segment, which includes semiconductor firms such as Arm, Graphcore, and Ampere, posted a 200.8 billion yen loss that widened from a 32.4 billion yen loss in the comparable prior-year period, with the company attributing the deterioration to higher research and development expenditures.
SoftBank shares have declined approximately 34% from their June peak as investors scrutinize the company’s substantial AI commitments and concentration in Arm and OpenAI holdings. The company has committed over $60 billion in total investment to OpenAI, representing approximately 13% ownership, with $55 billion already deployed.
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