SoftBank swings to 768 billion yen first-half loss on US data center charge

A first-half loss driven by US data centres

SoftBank Group Corp. reported a consolidated net loss of 768 billion yen for April to September, against a profit of 2,924 billion yen in the same period a year earlier. The result marks the first first-half loss in three years for the Japanese technology investor. Revenue for the first half of fiscal 2026 rose 13.3% to 4,235 billion yen. For the July to September quarter alone, the net loss was reported at between 1.11 and 1.12 trillion yen depending on the source, compared with a profit of about 2.5 trillion yen a year earlier.

April-September 2025 (profit)2,924

April-September 2026 (loss)-768

April-September 2025 (profit)

2924 billion yen

April-September 2026 (loss)

-768 billion yen

Data from the article text

The US data center charge

The largest single drag was a 597.2 billion yen charge in the group's US data center business, booked after SoftBank revised its procurement plans for power generation equipment. The charge covers non-refundable advance payments and changes and settlements of contracts through its subsidiary Silver Bands 7, including manufacturing capacity reservations and equipment purchases. These arrangements are meant to secure a robust power supply for AI data center projects in the United States. High financing costs and a 270.1 billion yen loss on the valuation of SoftBank's stake in Intel also weighed on the result. Analysts had expected a quarterly profit of 84 billion yen, according to LSEG data, so the outcome landed far from forecasts.

Shares, debt and the AI backdrop

SoftBank shares rose 13.9% on 10 November, tracking a rebound in Asian technology stocks that included Samsung Electronics and SK Hynix. That bounce followed a steep slide, with the shares down by more than half since June as investors questioned the group's exposure to the AI boom. Part of the concern comes from US election results, where Democratic candidates who campaigned against data centres won, raising doubts about how those wins could affect data centre development. On the balance sheet, credit default swap spreads have risen sharply, and the group raised $11bn in junk bonds in September. The lower value of holdings, particularly UK chip designer Arm, has lifted debt relative to assets, although analysts estimate the group still has significant borrowing capacity.

OpenAI exposure and pending plans

OpenAI remains Masayoshi Son's largest bet, with SoftBank having committed about $65bn to the ChatGPT maker. SoftBank is expected to take part in an upcoming funding round that could value OpenAI at $1.25tn, while investors watch for a possible OpenAI listing and an IPO by rival Anthropic. The planned listing of SB Energy, the group's US energy infrastructure company, at a $50bn valuation may face a delay, which could also affect Son's plans to list Roze, an AI and robotics business intended for data centre development. In China, regulators blocked SoftBank's attempted acquisition of ABB's robotics business after a national security review, and the group is exploring possible solutions.