SoftBank Group stock faces AI cost test after 1.1 trillion-yen loss

SoftBank Group reported a sharp quarterly reversal as the Japanese investment group continued to expand its artificial-intelligence strategy. Reuters said the company swung to a net loss of 1.1 trillion yen in the July-to-September quarter, compared with a 2.5 trillion yen profit a year earlier. The result was reported on Tuesday, November 10, after the Tokyo market close.

At 09:21 CET on Thursday, November 12, SoftBank Group stock traded at 21.26 euros on Lang & Schwarz. The latest market focus is the balance between the group's long-term AI ambitions and the financing burden required to pursue them.

US infrastructure costs hit earnings

The largest individual charge came from advance payments for power-generation equipment intended for US data centers. SoftBank recorded a 3.7 billion US dollar loss after project plans changed, while the company said it could receive rebates of up to 2.1 billion US dollars on future purchases.

Reuters reported that Chief Financial Officer Yoshimitsu Goto attributed the early purchases to intense competition for energy supplies and power-generation equipment. Chief Accounting Officer Kazuko Kimiwada said the cancelled equipment could not be refunded and also generated fees. Goto described the process of assessing assets that are no longer needed as an ongoing challenge as the group adjusts its strategy.

Borrowing raises the investment stakes

Financing costs rose to 462 billion yen during the quarter, according to Reuters, adding pressure to a model that depends on the rising value of portfolio holdings to outpace interest payments. SoftBank raised 56.5 billion US dollars during the period, its highest quarterly total, including an 11.87 billion US dollar term loan, a 10 billion US dollar corporate bond and a 1 trillion yen corporate bond.

The group also increased the margin loan secured against its Arm holding by 5 billion US dollars to roughly 25 billion US dollars. At the same time, SoftBank continued to commit capital to AI infrastructure and OpenAI. Reuters reported that the group agreed to a 64.6 billion US dollar purchase of a 13% stake in the ChatGPT developer.

Portfolio volatility remains central

SoftBank's earnings remain sensitive to changes in the value of its investments. A gain of 1.3 billion US dollars from its ByteDance holding partly contrasted with declines in listed portfolio companies including Coupang and Grab. Reuters said the quarterly loss was well above analyst forecasts and could intensify questions about how the group would withstand setbacks across the AI sector.

The next investor focus is the group's funding discipline, the treatment of surplus infrastructure assets and the progress of its AI investments. SoftBank's investor-relations page lists the Q2 FY2026 results and briefing materials published on November 10.

Japan's wider equity backdrop can be followed through the Nikkei 225 market reports.

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