SoftBank Group Corp. shares fell sharply on Wednesday, dropping 4.2% to ¥3,710 after the company disclosed a substantial quarterly loss. For the fiscal second quarter ended September 30, 2026, SoftBank reported a net loss of ¥1.12 trillion, equivalent to about $7.1 billion. That result is a dramatic reversal from the ¥2.5 trillion profit the company recorded in the same period a year earlier, and it missed the consensus outlook, which had called for a profit near ¥129 billion.
The company attributed a major portion of the loss to a $3.7 billion charge tied to nonrefundable advance payments. Those payments had been made to secure power-generation equipment for U.S. AI data center projects, including plans for an 8-gigawatt facility in Ohio. SoftBank said procurement plans were later revised, leading to the write-down of the advance payments. In addition to that charge, financing costs more than doubled during the quarter, further compressing profitability.
Beyond the data center-related impairment and rising borrowing expenses, SoftBank's net asset value (NAV) fell 17% over the quarter. A significant driver of the NAV decline was a 23% drop in the share price of Arm Holdings, which SoftBank discloses represents roughly 54% of its total asset value. The disproportionately large weighting of Arm in SoftBank's asset base magnified the effect of Arm's share-price movement on the parent company's reported NAV.
The Vision Fund segment also swung into the red, reporting a loss of ¥81.6 billion for the quarter compared with a profit of ¥2.38 trillion in the year-earlier period. SoftBank cited declines in the market values of holdings such as Intel and Coupang as contributors to the weaker results within the Vision Fund, which further eroded returns for the period.
The wider Japanese market offered little immediate pressure on the negative reaction to SoftBank's earnings. The Nikkei 225 index edged up roughly 0.1% on the same day, indicating that the drop in SoftBank shares was driven by company-specific developments rather than broad market weakness. The scale of the decline was magnified by recent volatility in SoftBank stock; the shares had surged nearly 14% in the prior session amid a broader rebound in AI and technology names across Asia, only to give back that advance and more once the quarterly results were released.
Summary of the quarter's drivers
- Net loss of ¥1.12 trillion for Q2 (ended Sept. 30, 2026), versus a ¥2.5 trillion profit a year earlier.
- A $3.7 billion charge related to nonrefundable advance payments for power-generation equipment for U.S. AI data center projects, including an 8-gigawatt Ohio facility, after procurement plans were revised.
- Financing costs more than doubled in the quarter, reducing net income.
- Net asset value fell 17%, pressured by a 23% decline in Arm Holdings' share price; Arm accounts for about 54% of SoftBank's asset value.
- The Vision Fund moved to a loss of ¥81.6 billion from a ¥2.38 trillion profit a year earlier, impacted by share-price declines in companies such as Intel and Coupang.
Context on market reaction
SoftBank's stock move was largely idiosyncratic. The small gain in the Nikkei 225 on the day indicates the company's earnings disclosure, not a broader market trend, triggered the share-price decline. The prior session's 14% rally in SoftBank shares added to the subsequent volatility, as investors reversed course after absorbing the detailed earnings figures.