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SoftBank Corp. Shares Rise on Strong Q1 Profit, AI Division Surges
Shares of SoftBank Corp. (TYO:9434) climbed Wednesday after the Japanese telecommunications company announced strong first-quarter earnings, lifted by record revenue and robust growth in its artificial intelligence and enterprise businesses.
Earnings Highlights
For the April-June quarter, SoftBank Corp. reported significant year-over-year growth across key metrics, according to its latest financial release. The results marked the company's highest-ever revenue for a first quarter.
- Revenue: ¥1.81 trillion ($11 billion), an increase of 9.4%.
- Operating Income: ¥302.3 billion, up 4.0%.
- Net Income: ¥201.5 billion, a 10.5% increase.
- Net Profit Attributable to Shareholders: ¥150.1 billion, up 3.3%.
AI and Enterprise Demand Fuels Growth
The strong performance was broad-based, with all business segments contributing to the revenue increase. The enterprise division was a standout performer, with revenue climbing 11.4%, propelled by a 31% surge in cloud and AI sales as corporate clients increased spending on computing infrastructure and cybersecurity.
AdOther segments also posted notable gains. The financial business saw revenue jump 27%, supported by higher transaction volumes at its PayPay payment operations. The distribution unit grew 22.8% on strong demand for cloud and SaaS products, while the media and e-commerce division advanced 9.8%.
Market Reaction and Outlook
Following the earnings announcement, shares in SoftBank Corp. rose 3.3% in Tokyo trading. The positive results also boosted its parent company, SoftBank Group (TYO:9984), whose shares surged 11% to ¥5,800.0.
SoftBank Corp. reaffirmed its full-year forecast, maintaining its projections for revenue of ¥7.5 trillion and net income attributable to shareholders of ¥560 billion. The company also kept its annual dividend forecast unchanged at ¥8.80 per share, signaling confidence in its outlook.
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