SoftBank Shares Fall 10.5% in Tokyo as Group Reports Quarterly Loss of 1.1 Trillion Yen
Key Facts
SoftBank Group shares fell as much as 10.5% to 3,465 yen in Tokyo trading on Wednesday, November 11, after the group reported a quarterly loss of 1.1 trillion yen the previous day. The company announced its results for the second quarter of fiscal 2026 on November 10, covering the six months ended September 30. The loss for the three months ended in September reversed a profit of 2.5 trillion yen in the same period a year earlier. By contrast, quarterly sales rose 16% year on year to 2.2 trillion yen, from 1.9 trillion yen. The shares came under pressure after results showed that sales growth did not prevent the quarterly net result from turning to a loss.
The shares fell sharply at the start of the session but later pared losses; the last reported trade was at 3,636 yen, down 6.1%, at 01:08 GMT. At the close, the decline had narrowed to 0.4%, according to market data cited by the Associated Press. The move came as Japan’s Nikkei 225 rose 1.3% to 61,248.59 in the same session. These levels highlight how the shares moved during the session compared with the closing result, after hitting a low of 10.5%. SoftBank’s U.S. depositary receipts, SFTBY, closed at $11.26 on November 10, a session before the Tokyo trading in which the shares fell.
Among the items tied to the loss, SoftBank recorded a loss of 597.25 billion yen in the six months ended September 30, after realigning plans to purchase power-generation equipment for U.S. data center projects. The company linked the item to changes in procurement plans, as AI-related infrastructure projects expand demand for power and generation equipment. Total financing costs also rose to 461.9 billion yen in the quarter ended in September. The company attributed this to a margin loan secured by SoftBank’s holding in Arm, large bond issuances and a general rise in financing rates. These items put investment and financing costs among the factors accompanying the quarterly loss.
Gains at the Vision Funds fell to 245.6 billion yen in the quarter ended in September, compared with gains of 2.755 trillion yen in the year-earlier quarter, according to a report cited by Investing.com. This means the funds continued to record investment gains, but at a much lower level than in the comparison period, alongside the company’s quarterly loss. In terms of asset value, SoftBank’s net asset value was 59.84 trillion yen on September 30, compared with a value of equity holdings of 71.14 trillion yen and net debt of 11.30 trillion yen. Another report said net asset value fell 17% during the quarter, pressured by a 23% decline in Arm’s share price over the same period. These figures show the value of the portfolio and liabilities at the end of September, alongside the quarter’s profit and loss result.
On the details of the group’s OpenAI holding, the company said the fair value of the stake remained at $99.6 billion, unchanged since March. This valuation forms part of the backdrop to SoftBank’s investment portfolio during the reporting period, as Vision Fund gains fell from a year earlier and the group’s asset value declined during the quarter. September-end data also showed net debt of 11.30 trillion yen, with equity holdings valued at 71.14 trillion yen. The comparison between these figures shows the scale of the assets and financing underpinning the group, as quarterly financing costs rose to 461.9 billion yen. The company announced its results on November 10 for the first half of fiscal 2026, ended September 30.