SoftBank Group Corp. reported an 18% decline in fiscal first-quarter profit on Thursday, as higher costs eroded investment gains even after a substantial boost from its stake in U.S. chipmaker Intel Corp.
The Tokyo-based technology investor recorded a profit of 347.3 billion yen ($2.2 billion) for the April–June period, down from 421.8 billion yen a year earlier. Quarterly sales rose nearly 11% to 2 trillion yen ($12.7 billion), lifted in part by strong performance at Arm, the British semiconductor and software design firm.
An $8.2 billion valuation gain tied to Intel underpinned the quarter’s investment results, offsetting a more muted contribution from artificial intelligence bets such as OpenAI. The mixed picture highlights how SoftBank’s earnings can swing sharply, given its exposure to a wide portfolio of early-stage and speculative technology ventures through its Vision Fund.
Despite beating some market expectations on profit, SoftBank shares closed 4% lower in Tokyo trading, reflecting investor caution over the drop in net earnings and the company’s practice of declining to issue annual forecasts.
Chief Financial Officer Yoshimitsu Goto told reporters that the Arm business was performing well and that SoftBank had invested an additional $20 billion in OpenAI, with further investments planned in the current fiscal year. The company has committed heavily to the AI sector in recent months, part of a broader strategy that has included large-scale borrowing to fund its AI ambitions.
SoftBank’s investment holdings span a range of major technology names, including ByteDance, the parent company of TikTok; Intel; Japanese mobile payment service PayPay; and Taiwan Semiconductor Manufacturing Company. Founded in 1981 by Chief Executive Masayoshi Son, the group began with internet- and computer-related investments before expanding into a broad array of futuristic ventures.
Son has increasingly focused on emerging fields such as autonomous driving and robotics. The company is also advancing plans involving ABB Robotics, which specialises in automation, robotic arms and mobility solutions.
The Vision Fund’s model of backing fledgling technology tends to generate large gains alongside significant risks, producing the volatility that has come to characterise SoftBank’s quarterly reports.
With no annual guidance provided, attention now turns to how SoftBank’s expanding commitments in AI, chips and robotics will translate into returns over the remainder of the fiscal year.