ENVALITH
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SoftBank Corp.

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SoftBank Corp.9434

Business

SoftBank Corp. is the core operating company of SoftBank Group Corp. in Japan, and while its foundation is consumer and enterprise telecommunications services, it operates broadly across the Media & E-Commerce Business centered on Yahoo! JAPAN and LINE, the FinTech business centered on PayPay, and the distribution business for ICT products. It is a corporate group comprising 271 subsidiaries, 53 affiliated companies, and 14 joint ventures, and consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥7,038,680 million. Under its growth strategy "Activate AI for Society," the company is promoting the social implementation of AI across all businesses and is advancing a medium-term management plan targeting consolidated operating income of ¥1,700,000 million (¥1.7 trillion) for FY2031 (ending March 2031).

Business Model

Telecom service revenue in the Consumer Business (net sales of ¥2,996,054 million) generates stable cash flow, while the Enterprise Business (¥1,002,895 million) expands enterprise ARPA through DX and AI solutions. The Media & E-Commerce Business (¥1,641,041 million) diversifies earnings through a three-layer structure of advertising, commerce, and FinTech, and the Finance Business (¥379,312 million) sees profit growth driven by the expansion of PayPay's payment transaction volume. Each business leverages the shared user base of LINE, Yahoo! JAPAN, and PayPay to expand the group's economic ecosystem, forming a structure aimed at sustained revenue growth.

Company Strengths

In addition to a mobile subscriber base built on the three brands "SoftBank," "Y!mobile," and "LINEMO," the company holds Yahoo! JAPAN and LINE, among the largest internet services in Japan, as well as the PayPay (QR Code Payment) platform. Linking these together through offerings such as "LYP Premium" to form a group-wide economic ecosystem constitutes a unique strength that competitors cannot easily replicate in a short period.

The company operates six segments—Consumer, Enterprise, Distribution, Media & E-Commerce, Finance, and Other—and achieved revenue growth across all reporting segments in FY2026 (ending March 2026). While stable telecom revenue serves as the foundation, growth drivers are well diversified, as seen in the Finance Business segment profit, which surged 107.1% year on year to ¥86,290 million.

In November 2025, the company launched SB OAI Japan GK, a joint venture with OpenAI and SoftBank Group, securing exclusive domestic rights to deploy the enterprise AI solution "Crystal Intelligence." The company has also built an early foothold in the AI infrastructure layer, including the planned launch from April 2026 of "Cloud PF Type A," a sovereign cloud offering developed in collaboration with Oracle.

ENVALITH's Perspective

In the mid-term management plan covering FY2024 (ended March 2024) through FY2026 (ending March 2026), the company achieved ¥550.8 billion in net income attributable to owners of the parent, exceeding the target of ¥543.0 billion. The new mid-term management plan (FY2027–FY2031, ending March 2031) sets a consolidated operating income target of ¥1,700.0 billion for FY2031 (ending March 2031), but as large-scale investment in AI Computing Infrastructure & AI Data Center Investment precedes returns, the widening loss in the "Other" segment (projected at approximately -¥100.0 billion for FY2027, ending March 2027) is a point requiring close attention as a factor pushing down profit in the short term.

While segment profit in the Finance Business surged 107.1% year on year, segment profit in the Media & E-Commerce Business was limited to ¥240,418 million, down 7.1% year on year, due in part to the impact of the ASKUL Corporation system failure in October 2025. For FY2027 (ending March 2027), profit growth is expected on recovery from the ASKUL failure impact and fixed cost reductions, but continued monitoring is needed of costs associated with strengthening the information security management system across the LINE Yahoo group, as well as the risk of losses arising from the consolidation of LINE MAN (Thailand Food Delivery) and LINE Bank Taiwan as subsidiaries.

Total assets as of the end of FY2026 (ending March 2026) increased 14.9% year on year to ¥18,502,175 million, and interest-bearing debt (current and non-current combined) increased by ¥522,410 million year on year to ¥6,484,582 million. The increase in deposits from the banking business (due to the consolidation of LINE Bank Taiwan as a subsidiary and an increase in PayPay Bank deposits) has inflated both assets and liabilities, making it necessary to separate out the banking business to properly assess actual financial leverage. Amid a continuing environment of rising interest rates externally, financial expenses improved to ¥109,634 million (down ¥7,718 million year on year), but the effects of fundraising diversification through measures such as USD-denominated bond issuance, as well as foreign exchange risk trends, will be key focal points going forward.

Growth Strategy

Under "Activate AI for Society," the company aims to monetize AI infrastructure and AI services, targeting operating income of ¥1,700.0 billion for FY2031 (ending March 2031)

The company has developed "Infrinia AI Cloud OS" for GPU cloud and AI data centers, advancing both in-house operation and external sales of AI computing infrastructure. Long-term growth investment for FY2026 (ending March 2026) is ¥24.5 billion (down from ¥166.9 billion in the previous period), continuing infrastructure development while pursuing investment efficiency. This forms the core pillar underpinning the target of ¥1,700.0 billion in consolidated operating income for FY2031 (ending March 2031).

SB OAI Japan LLC (established November 2025) will begin exclusive domestic rollout of OpenAI's generative AI solution "Crystal Intelligence" in 2026. The sovereign cloud "Cloud PF Type A," developed in collaboration with Oracle, will be rolled out in stages starting April 2026. The domestically developed LLM "Sarashina API" is also being deployed for enterprise customers. The Enterprise Business segment profit forecast for FY2027 (ending March 2027) is ¥230.0 billion (up 19.5% year on year).

PayPay Corporation completed its U.S. listing in March 2026, gaining independent capital-raising capability. The integration of PayPay Bank under PayPay has completed a comprehensive financial platform unifying payments, banking, securities, and credit cards. Finance Business segment profit for FY2026 (ending March 2026) reached ¥86.3 billion (up 107.1% year on year). The forecast for FY2027 (ending March 2027) is ¥110.0 billion (up 27.5% year on year).

In June 2025, the company invested in Sceye, Inc. and obtained exclusive rights for HAPS service deployment within Japan. Utilizing LTA-type HAPS, pre-commercial service is planned to begin domestically in 2026. The initiative aims to provide communication during large-scale disasters, establish stable communication environments for drones and UAVs, and build a three-dimensional communication network in preparation for the 6G era.

LINE Yahoo Corporation made LINE MAN CORPORATION PTE. LTD. (Thailand's largest food delivery company) and LINE Bank Taiwan Limited into subsidiaries, establishing a business foundation in Southeast Asia and Taiwan. "Strategic" revenue for the Media & E-Commerce Business in FY2026 (ending March 2026) was ¥73.8 billion (up 44.4% year on year). The Media & E-Commerce Business segment profit forecast for FY2027 (ending March 2027) is ¥264.0 billion (up 9.8% year on year).

Last updated: July 19, 2026