SoftBank swings to $7 billion net loss in second quarter as tech selloff weighs on results
The Japanese conglomerate cited weaker technology investments and a broader AI selloff as revenue topped estimates at 2.22 trillion yen.
- On Tuesday, SoftBank Group reported a fiscal second-quarter net loss of 1.12 trillion yen , a sharp reversal from the 2.5 trillion yen profit recorded in the same period last year.
- A subsidiary's revised US data center equipment plans triggered a $3.7 billion loss, while financing costs more than doubled to 462 billion yen during the quarter.
- SoftBank committed $1.85 billion to develop AI infrastructure in Malaysia with Grab and PETROS, complementing its $30 billion follow-on investment in ChatGPT-maker OpenAI, which raised its ownership stake to approximately 13%.
- Investors responded positively to an overnight Wall Street rebound, sending SoftBank shares 13.9% higher on Tuesday despite The Democratic Party's midterm success heightening expectations for regulatory scrutiny in the AI sector.
- Earnings volatility persists for SoftBank as the company's fortunes remain tied to the broader AI industry, with plans to monetize its stake through an OpenAI IPO delayed to next year.
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The Softbank group recorded a net loss of $7 billion in the third quarter, affected by investment losses in AI data centre equipment and high financing costs, amid concerns about the sector's returns.
SoftBank shares climb 14% despite investment giant posting $7 billion quarterly loss on data-centre costs
SoftBank shares rose 14% Tuesday before the company reported a $7 billion quarterly net loss, announced after markets closed. The loss reflected costly US data-centre investments, rising financing expenses and volatile portfolio valuations, despite sales growth and an investment gain from ByteDance.
Japan's SoftBank Group recorded a quarterly net loss for the first time in two years, incurring massive losses in its U.S. artificial intelligence (AI) data center business. SoftBank Group announced on the 10th that its net loss for the July-September period (Q2 2026 fiscal year) totaled 1.1153 trillion yen (approximately 9.4 trillion won). This marks a shift from a profit of 2.5022 trillion yen in the same period last year to a loss. This contr…
Japanese investment firm Softbank unexpectedly posted a loss of 1,120 billion yen (6.3 billion…) for the second quarter of its fiscal year.
(Tokyo=Yonhap News) Correspondent Lee Do-yeon = Japan's SoftBank Group posted a deficit for the first time in two years as it incurred losses in its U.S. data center business.
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