SoftBank Q2 revenue rises 8% to $10.6b

SoftBank Corp. reported its financial results for the quarter ending June 30, 2025, with revenue rising 8% year-on-year to 1.66 trillion yen (US$10.64 billion).

The Japan-based telecom and technology company saw operating income fall by 4.3% to 290.7 billion yen (US$1.86 billion), while net income attributable to owners dropped by 10.6% to 145.3 billion yen (US$931 million).

Basic earnings per share for the quarter stood at 3.00 yen (US$0.019), down from 3.43 yen (US$0.022) a year earlier, with these per-share figures adjusted to reflect a 10-for-1 stock split effective October 1, 2024, applied retroactively.

The company added Line Bank Taiwan Limited to its consolidated group during the period.

Total assets as of June 30, 2025, were 17.1 trillion yen (US$109.6 billion), with equity attributable to owners at 2.7 trillion yen (US$17,3 billion).

SoftBank Corp. maintained its dividend forecast for the fiscal year ending March 2026 at 8.60 yen per share (US$0.055).

🔗 Source: SoftBank

🧠 Food for thought

1️⃣ Strong revenue growth masks underlying profitability pressures

SoftBank Corp’s Q1 2025 results reveal a concerning divergence between top-line growth and bottom-line performance.

While revenue increased 8.0% year-over-year to ¥1.66 trillion, operating income declined 4.3% and net income fell 9.1% to ¥182.3 billion.

This contrasts with the company’s strong Q4 2024 performance, where it achieved both 8% revenue growth and 13% operating income growth, reaching its financial targets ahead of schedule1.

The shift from expanding margins to contracting profitability in just one quarter suggests either increased investment spending or rising operational costs that are outpacing revenue gains.

This is notable given SoftBank’s push into AI investments and infrastructure, with the company building stakes in companies like Nvidia and TSMC to position itself in the AI hardware ecosystem2.

2️⃣ Stock split strategy reflects confidence despite near-term headwinds

SoftBank Corp’s decision to implement a 10-for-1 stock split in October 2024 signals management’s long-term confidence despite current profitability challenges.