SoftBank Group Corp.

Business Details

Comprises SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corp., SoftBank Group Overseas GK, and the asset management subsidiary SB Northstar. The segment primarily invests in listed and unlisted equities recognized as financial assets at FVTPL, measuring fair value quarterly and recording gains and losses on investments. Investment gains and losses related to subsidiary shares (dividends received, impairment of subsidiary shares, etc.) are not included.

Recent Overview

Recorded investment gains from NVIDIA, Intel, and OpenAI, but losses from T-Mobile and Alibaba, together with increased derivative and finance costs, drove the segment into a loss

Investment gain for the period was ¥218,111 million, down 93.6% from ¥3,413,821 million in the prior period. The full sale of NVIDIA shares generated a gain of ¥339,092 million, the investment in Intel generated a gain of ¥278,566 million, and the transfer of the OpenAI forward contract generated a gain of ¥264,920 million, while the sale and period-end valuation of T-Mobile shares resulted in a combined loss of ¥656,838 million, and the physical settlement of the Alibaba forward sale contract resulted in a loss of ¥169,881 million. Finance cost was ¥645,592 million (up ¥114,340 million year on year), and foreign exchange loss was ¥281,961 million, resulting in a segment loss of ¥(472,082) million. Derivative-related gains and losses (excluding investment gains and losses) were a gain of ¥192,523 million (prior period: ¥(2,041,830) million).

Key Products

Growth Drivers

• Cumulative investment in OpenAI of US$34.6 billion (at period-end) against a fair value of US$79.6 billion, realizing cumulative investment gains of US$45.0 billion
• Committed an additional US$30.0 billion in OpenAI in February 2026 (the first tranche of US$10.0 billion was executed in April 2026)
• Recorded an investment gain of ¥278,566 million on the Intel investment (forward contract) due to a rise in the share price
• Stable interest income from SB Northstar's bond-centered portfolio (balance of ¥1,267,137 million)
• Agile fundraising through margin loans utilizing Arm shares and SoftBank Corp. shares

Risks

• Recorded an investment loss of ¥656,838 million for the period due to the decline in T-Mobile's share price, with risk of continued holding
• Structural exposure where US dollar-denominated liabilities exceed US dollar-denominated assets, resulting in foreign exchange losses when the yen depreciates (¥(281,961) million for the period)
• Risk of refinancing the bridge loan (US$40.0 billion facility) into long-term funding and a rising trend in finance costs
• Concentration risk from the large-scale investment in OpenAI (cumulative US$34.6 billion, plus a further US$30.0 billion committed)
• Cumulative investment loss at SB Northstar of ¥720,900 million since inception of activities (Masayoshi Son's 33% interest is non-recourse with indemnification)