Japan’s SoftBank Group has reported a remarkable financial turnaround, posting a net profit of $7.4 billion in fiscal year 2025 (FY25), reversing a $1.4 billion loss from the previous year.
📈 SoftBank’s Return to Profitability in FY25
For the fiscal year ending March 2025, SoftBank Group achieved a net profit of ¥1.15 trillion ($7.8 billion), marking its first annual profit in four years. This significant turnaround from a ¥227.6 billion loss in the previous year was driven by robust performance in its telecommunications sector and higher valuations in its investment portfolio, including stakes in companies like Alibaba, T-Mobile, and Deutsche Telekom.
💹 Vision Fund Performance: Mixed Outcomes
SoftBank’s Vision Funds experienced varied results in FY25.
- Vision Fund 1: Reported a gain of ¥940 billion ($5.97 billion), benefiting from increased valuations in companies such as ByteDance and Coupang.
- Vision Fund 2: Faced a loss of ¥526 billion ($3.34 billion), primarily due to markdowns in holdings like Swiggy and Ola Electric. In the January–March quarter alone, Vision Fund 2 incurred an investment loss of $708 million, with the value of its publicly listed investments falling by 21.7%.
🤖 Strategic Investments in Artificial Intelligence
Under the leadership of CEO Masayoshi Son, SoftBank is intensifying its focus on artificial intelligence (AI). The company has committed up to $30 billion to OpenAI Global and is acquiring U.S.-based chipmaker Ampere for $6.5 billion. Additionally, SoftBank is spearheading the “Stargate” project, a $500 billion initiative aimed at building large-scale AI data centers in collaboration with partners like OpenAI, Oracle, Microsoft, and Nvidia.
🌐 Global Economic Factors and Future Outlook
While SoftBank’s FY25 performance marks a significant recovery, the company remains cautious about future uncertainties. Factors such as geopolitical tensions, regulatory risks, and market volatility could impact its investment strategies. Despite these challenges, SoftBank’s aggressive investments in AI and technology position it for potential growth in the coming years.
📊 Summary of Key Financial Metrics
- Net Profit: $7.4 billion (¥1.15 trillion)
- Revenue: $45.97 billion (¥7.24 trillion), up 7.2% year-on-year
- Vision Fund 1 Gain: $5.97 billion (¥940 billion)
- Vision Fund 2 Loss: $3.34 billion (¥526 billion)
- AI Investments: Up to $30 billion commitment to OpenAI; $6.5 billion acquisition of Ampere