Record Financial Performance in Q1 FY2025
On August 7, 2025, SoftBank Group announced its earnings results for the first quarter of fiscal year 2025, reporting a record-high revenue since its public listing. The company achieved revenue of
¥1,658.6 billion (approximately $11.3 billion), an
8% increase year-on-year. Operating income, excluding one-time factors, rose by 6% to ¥290.7 billion, while net income was ¥145.3 billion, up 1% compared to the same period last year[1][2].
- Enterprise, Distribution, and Financial segments all posted year-on-year increases in both revenue and operating income.
- Q1 performance marked 25% of the annual revenue target, underscoring strong progress towards full-year forecasts.
President & CEO Junichi Miyakawa commented during the August 5 press conference that “Each segment is making steady progress toward achieving its full-year forecast.”[2]
AI Investment Spree Takes Center Stage
A major focus for SoftBank this quarter is its large-scale investments in artificial intelligence companies and infrastructure. The conglomerate is leading a
$40 billion funding round for
ChatGPT creator OpenAI and plans to fund up to $22.5 billion of that round by the end of the year. This move is part of an even greater ambition, as SoftBank also leads financing for the $500 billion
Stargate project—an initiative to develop advanced data centers in the United States and position itself as a central organizer in the AI industry[4].
- SoftBank’s heavy AI investments are its largest since launching the Vision Funds in 2017 and 2019.
- The group recently raised $4.8 billion by selling part of its T-Mobile holdings to help fund these investments.
Analyst Expectations and Market Reaction
Market analysts expected a net profit of approximately ¥127.6 billion for the April-June quarter, citing improved performance in telecom operations and higher valuations of late-stage startups. Despite historically volatile earnings driven by diverse, often unlisted, investments, analyst sentiment remains positive, with most issuing “buy” or “strong buy” recommendations for SoftBank stock[4].
- Concerns persist over the high valuations in the AI sector, as well as the performance of SoftBank’s Vision Funds, which had a cumulative investment loss of $475 million as of March 2025.
- Nevertheless, the surge in AI investment and overall earnings momentum continue to bolster market confidence.
Outlook
With aggressive funding in cutting-edge AI projects and robust Q1 financial results, SoftBank emphasizes its commitment to shaping the future of technology. As the group deploys sizable capital into companies like
OpenAI and large-scale infrastructure such as Stargate, industry observers are keenly watching how these investments will influence both the company’s returns and the global technology landscape in the quarters ahead.
