SoftBank Group Posts 1.15 Trillion Yen Annual Profit, Despite Vision Fund Loss, Bolstered by AI and OpenAI Investments
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SoftBank Group Corp. reported a significant turnaround, posting its first annual profit in four years for the fiscal year ended March 2025, with a net income of 1.15 trillion yen. This marks a shift from a 227.6 billion yen loss in the previous fiscal year. The company's fourth quarter net profit reached 517.18 billion yen, surpassing analyst expectations of a 108.11 billion yen loss.
The profit surge was driven by a global stock market rally, which boosted the valuations of SoftBank's investment portfolio. Key contributors included investments in tech giants such as Alibaba, T-Mobile, ByteDance, the parent company of TikTok, and Arm. The Vision Fund, SoftBank's major investment arm, also saw a significant improvement, recording a 177.2 billion yen profit in the fourth quarter, a stark contrast to the 57.5 billion yen loss in the same period the previous year.
Despite the annual profit, SoftBank's Vision Fund reported a fiscal year loss, with investment gains slowing by 40%. This was attributed to markdowns in certain holdings, including AutoStore, despite gains from investments in Didi and Coupang. The Vision Fund's performance reflects the challenges faced by SoftBank's early-stage tech investments, particularly in the Indian market where public market performance has been weak, affecting companies like Swiggy and Ola Electric.
SoftBank's aggressive investment in artificial intelligence (AI) continues, with significant commitments to OpenAI, including a planned investment of up to $400 billion and involvement in the development of ChatGPT. The company also announced the Stargate project, a joint venture aimed at developing AI infrastructure, and acquired Ampere Computing for $6.5 billion to bolster its AI capabilities. These moves underscore SoftBank's strategic focus on AI as a key growth area. CFO Yoshimitsu Goto highlighted the company's resilience despite challenges from U.S. tariffs, stating that SoftBank's plans are not significantly impacted.
Japan's SoftBank reported its first annual profit in four years, likely bringing relief to investors scarred by high-profile failures as it embarks on another series of mammoth tech investments. More here
SoftBank reports Q4 net profit up 124% YoY to ~$3.5B, a surprise profit and above a ~$182M loss est., due to improving valuations of Alibaba, T-Mobile, and more (@davidkeo / Financial Times)
SoftBank flags $708 million loss on investment in Vision Fund 2 during January-March
Calls out poor public markets run in India.
Swiggy and Ola Electric are SVF-2 companies listed in India
SoftBank Group has reported a 124% jump in quarterly profit on resilient AI demand that’s supporting startup valuations and chip unit sales, a boost to its aggressive data center investment plans.
