In the fiscal second quarter, SoftBank reported a profit of 2.502 trillion yen, far outpacing the 206.89 billion yen forecast by LSEG consensus estimates and surpassing the 1.18 trillion yen profit a year earlier. Quarterly revenue stood at 1.92 trillion yen, slightly above the 1.9 trillion yen estimate.
SoftBank’s aggressive expansion into artificial intelligence, with sizable investments in companies such as OpenAI and PayPay, drove a $19 billion profit in its Vision Fund segment, following a $4.8 billion gain in the previous three-month period and accounting for various investment and non-investment factors.
The company is doubling down on AI, with investments and acquisitions aimed at enhancing its role in robotics and artificial super intelligence (ASI).
According to a recent investor briefing, SoftBank reported “new highs” in AI-related revenues for the quarter ended September 30, showing 93% annualized growth. Gains from the OpenAI investment alone reached 2.157 trillion yen ($14 billion) for the period.
Additionally, the company announced plans for a four-for-one stock split at year’s end to make shares more accessible and broaden its investor base.
Despite its significant gains, the company’s shares fell sharply in the past week, as concerns over a potential AI bubble rattled markets and wiped nearly $50 billion off its market capitalization — its worst week since March 2020. However, the stock is still up more than 140% year-to-date, reflecting the revival in its technology investment unit.
Last month, SoftBank reportedly signed off on the final tranche of its $30 billion investment in OpenAI, noting a provision that could reduce the stake to $20 billion if OpenAI did not become a for-profit company by December 31. The AI company has since finalized its recapitalization, establishing itself as a nonprofit with a controlling interest in the for-profit OpenAI Group PBC.
Moreover, in its Tuesday earnings report, SoftBank confirmed plans to invest another $22.5 billion in OpenAI via Vision Fund 2 in December.
