SoftBank Corp.

SoftBank reported first-quarter FY2026 revenue of JPY 1,814.7 billion, up 9% year over year, operating income of JPY 302.3 billion, up 4%, and net income of JPY 150.1 billion, up 3%. By segment, Enterprise revenue was JPY 260.4 billion (+11%) with operating income of JPY 62.2 billion (+28%); Consumer revenue was JPY 749.7 billion (+4%) with operating income of JPY 152.9 billion (-1%); Media & EC revenue was JPY 446.8 billion (+10%) with operating income of JPY 66.7 billion; Financial revenue was JPY 115.9 billion (+27%) with operating income of JPY 31.8 billion (+76%). Management said operating income progress toward the full-year forecast reached 27%, net income progress also reached 27%, and adjusted free cash flow was negative JPY 128.5 billion, mainly due to investment in SB Energy. For guidance, management said the cloud and AI business is expected to continue growing at an annual rate of approximately 30% through FY2027, Consumer operating income is still expected to grow for the full year, and the company will consider an upward revision to the full-year earnings forecast at the second-quarter results, depending on the SB Energy sale gain and underlying business strength.

CEO Junichi Miyakawa framed the quarter as evidence that SoftBank is steadily evolving from a telecom operator into a provider of next-generation social infrastructure. He emphasized that the company is already moving from AI investment into monetization, especially in Enterprise cloud/AI, payments, and new services like PaaS. His tone was optimistic and expansive, but he also stressed discipline, saying SoftBank will balance growth investment, financial discipline, and shareholder returns through capital recycling.

The CFO’s remarks were limited in the transcript, but the financial framing centered on first-quarter performance and capital allocation. Management pointed to progress of 27% toward the full-year forecast on both operating income and net income, and noted adjusted free cash flow was negative JPY 128.5 billion, mainly because of SB Energy investment. They also highlighted ongoing capital recycling, including the planned sale of the SB Energy stake for about $1.5 billion, which management expects to generate a gain and may support a higher full-year forecast later in the year.

Analysts focused on the Seven & i alliance, SP.LINKS synergy, PaaS commercialization, cloud/AI revenue timing, GPU sourcing, and whether the company was becoming too aggressive on investment. Miyakawa said the Seven & i discussions had been underway for more than a year, that SoftBank’s role is to support—not run—convenience stores, and that synergies from SP.LINKS are expected to come from scale, lower overlap, and a broader payment lineup, with annual synergies of about JPY 10 billion. On PaaS, he said inquiries have been in the hundreds, contracts are already in the triple digits, monetization began on August 1, and the business should add upside, though it was not included in the current plan. On cloud/AI, he said the revenue figures disclosed were based on infrastructure contracts only, while software and PaaS are additional upside, and he stressed that financing depends on offtaker contracts and non-recourse structures.