TOKYO, Japan: SoftBank Group is projected to post a US$1.87 billion profit for the July-September quarter, driven by successful IPOs from its portfolio companies and a favorable yen.
The expected profit reflects a strong turnaround from a 931 billion yen loss in the same period last year. Analysts attribute much of this gain to SoftBank’s strategic investments and currency shifts.
Two high-profile IPOs-Brainbees Solutions and Ola Electric-generated approximately $1.9 billion in combined income for SoftBank, highlighting its success in the Indian market. Additionally, the yen’s 10 percent rise against the dollar has further strengthened the company’s bottom line. MST analyst David Gibson notes an overall quarterly investment gain of $3.9 billion, with SoftBank’s strong balance sheet poised for further expansion.
Founder and CEO Masayoshi Son recently hinted at major upcoming investments, especially in artificial intelligence, which remains a key focus for SoftBank. In early October, the company invested in OpenAI, signaling its commitment to AI technologies.
Analysts are watching closely for signs of new investment activity, especially after Son’s comments at a recent Saudi summit about “saving tens of billions” for significant opportunities.
SoftBank is reportedly exploring AI chip manufacturing through its 90 percent stake in chip designer Arm and a potential partnership with chipmaker Graphcore.
This move could position SoftBank to compete directly with industry leader Nvidia in the high-stakes AI hardware market. In the most recent quarter, SoftBank also made $43.2 million in revenue by licensing Arm’s intellectual property.
The company’s solid financial standing, backed by recent credit rating upgrades from S&P Global Ratings and Japan Credit Rating Agency, opens the door to large-scale investments. While SoftBank announced a $3.4 billion share buyback three months ago, analysts believe there’s still ample capital for Son’s next strategic moves.
