SoftBank Books $3.7 Billion Loss on Power Equipment and Reassesses Purchases
Key Facts
SoftBank announced its fiscal 2026 second-quarter results on November 10, 2026, for the period ended September 30, disclosing a $3.7 billion loss tied to power-generation equipment for AI data centers in the United States. Chief Financial Officer Yoshimitsu Goto said the company had decided to conduct a "comprehensive reassessment" that includes reviewing its procurement strategy. He explained that the loss resulted from nonrefundable advance payments and adjustments to signed contracts, following a review of the project portfolio. The decision puts spending on power equipment at the center of SoftBank’s review of its AI infrastructure plans. This report is based on the earnings announcement and Goto’s remarks on the earnings call; the scale of the GE Vernova share decline cited in the initial headline could not be verified from a reliable source open for the relevant session.
Goto explained that SoftBank bought power-generation equipment in advance before finalizing data center and power projects, as a bridge investment to secure equipment in anticipation of an expected supply shortage. The cumulative value of these advance purchases was $9.5 billion, he said on the call. He said the company reviewed its project portfolio and then changed its procurement strategy for some power-generation equipment. The adjustments and nonrefundable payments resulted in the loss recorded in the second quarter. The move reflects a review of the timing of equipment purchase commitments while some projects remain unfinished, according to the CFO’s explanation.
Goto denied that the company was scaling back the Portes-By-Bay project, saying it "is progressing well so far." He added that the review concerns the medium- and long-term data center strategy, distinguishing a reassessment of purchases from the cancellation of a specific project. He also rejected a claim that SoftBank had defaulted on turbine orders, saying: "There is no default." He said the company remains focused on its AI infrastructure plans. The remarks come as power-equipment purchases face scrutiny following the loss tied to contracts and advance payments.
Investment results added further pressure to the group’s accounts: the Vision Fund segment posted a loss of 81.6 billion yen in the fiscal second quarter, despite market expectations for a profit. The segment oversees stakes in hundreds of technology startups, making its result an indicator of SoftBank’s investments in technology companies. By contrast, Goto said the loan-to-value ratio was 15.9% at the end of September, below the 25% ceiling the company set for financial stability. On the earnings call, he said cash liquidity stood at 5 trillion yen at the end of the second quarter. He also said the company could not maintain a fully aggressive investment stance in the short term and needed to balance its activity to keep the loan-to-value ratio below 25%.
SoftBank’s review comes after GE Vernova reported strong quarterly results for the third quarter of 2026. The company’s revenue was $12.642 billion, up 27% year on year, while net income rose to $1.289 billion from 453 million in the same period a year earlier. Orders totaled $21.78 billion, compared with $7.832 billion a year earlier, an annual increase of 178%. Chief Financial Officer Ken Parks said the backlog continued to expand, supported by equipment growth in the Power and Electrification segments, as well as growth in energy services. These figures support a picture of strong demand for the company’s equipment, but on their own they do not settle the effect of SoftBank’s review on GE Vernova’s orders or the scale of its direct exposure to the group’s projects.
GE Vernova raised its 2026 financial outlook, now expecting revenue of between $46.5 billion and $47.5 billion, compared with a previous range of $45.5 billion to $46.5 billion. It also raised its forecast for adjusted EBITDA margin to 13.5%-14.5% from 12%-14%, and for free cash flow to $16-17 billion from $11.5-12.5 billion. Electrification equipment backlog reached $42.2 billion in the third quarter, up $15.7 billion, or 60% year on year, including $5 billion from Prolec GE. These indicators place SoftBank’s purchasing review in the context of broader growth in GE Vernova’s orders and outlook. EL7’s market record showed GE Vernova shares closed at $829.34 and SoftBank shares listed under the ticker SFTBY at $11.75 on November 9, 2026; these were the closing prices in the session before the results announcement on November 10.