A robust performance from SoftBank Group’s telecommunications subsidiary has prompted a significant upward revision of its full-year outlook. The company is reporting double-digit profit growth, countering previous expectations of stagnation in its core operations. Market observers are now assessing whether its new artificial intelligence strategy, coupled with sustained cost efficiency, can provide lasting momentum for its share price.
Revised Targets Reflect Strong Performance
In response to a stronger-than-anticipated nine-month period, SoftBank Corp.’s management has raised its guidance for the fiscal year ending March 2026. The company now forecasts revenue of 6.95 trillion yen, an increase of 250 billion yen from its previous projection. Its operating profit target has also been lifted by 20 billion yen to 1.02 trillion yen. This optimism is attributed to strength in the enterprise business segment, its media operations, and successful cost-reduction initiatives.
The financial results for the nine months ended December 31, 2025, underscore this positive trajectory. Revenue advanced by 8% to 5.195 trillion yen. Operating profit saw a corresponding 8% rise, reaching 884.1 billion yen. Net income showed particular strength, climbing 11% to 485.5 billion yen.
PayPay Profitability and Strategic AI Push
Beyond traditional telecom metrics, the digital payment platform PayPay continues to be a major growth engine. Its gross merchandise volume (GMV) expanded by 24% to 14.3 trillion yen for the nine-month period. More impressively, the segment’s profitability soared, with EBITDA skyrocketing 83% to 79.1 billion yen.
Should investors sell immediately? Or is it worth buying SoftBank?
Strategically, SoftBank Corp. is intensifying its focus on artificial intelligence infrastructure. CEO Junichi Miyakawa recently unveiled “Infrinia AI Cloud OS,” a platform designed for sovereign AI cloud services. To manage the escalating data demands associated with such technologies, the corporation also announced a joint venture with Sony aimed at accelerating the deployment of optical fiber networks.
The subsidiary’s solid earnings report provided a lift to its parent company, SoftBank Group, in Tokyo trading on Tuesday. The favorable market environment for AI and semiconductor-related equities, bolstered by record sales at chip-design unit Arm Holdings and investment-friendly policies in Japan, remains intact.
Key Financial Highlights (9 Months):
* Revenue: 5.195 trillion Yen (+8%)
* Net Profit: 485.5 billion Yen (+11%)
* PayPay EBITDA: 79.1 billion Yen (+83%)
* New Full-Year Revenue Forecast: 6.95 trillion Yen
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