SoftBank Group (9984) Q1 2025 earnings summary

Executive summary

• Net sales rose 9.3% year-over-year to ¥1,701.7 billion, with income before tax at ¥225.7 billion, reversing a loss last year.

• Net loss attributable to owners improved to ¥174.3 billion from ¥477.6 billion loss a year ago, despite a ¥559.7 billion investment gain.

• Strategic focus on AI and Artificial Super Intelligence, with Arm positioned as a central asset and ongoing investments in AI chips, data centers, and robotics.

• Board approved a share buyback program of up to ¥500 billion to enhance shareholder returns.

• Maintained low Loan-to-Value (LTV) and ample cash reserves, supporting further AI investments.

Financial highlights

• Net sales reached ¥1,701.7 billion (+9.3% YoY); gross profit was ¥920.6 billion (+10.6% YoY).

• Investment gain of ¥559.7 billion, a turnaround from a ¥699.0 billion loss in the prior year quarter.

• Net loss attributable to owners: ¥174.3 billion (improved from ¥477.6 billion loss YoY).

• Arm revenue hit a record high, exceeding analyst consensus at $903 million; operating income up 65% year-over-year to $448 million.

• Vision Fund investments turned positive this quarter, with SVF1 posting a $2.8 billion gain and cumulative investment return of $109.1 billion on an $89.5 billion cost.

Outlook and guidance

• No specific consolidated earnings or investment guidance provided due to market uncertainties and volatility.

• Arm forecasts FY2024Q2 revenue of $780 million–$830 million and full-year revenue of $3.8 billion–$4.1 billion.

• Arm expects FY2024Q2 non-GAAP EPS of $0.23–$0.27 and full-year EPS of $1.45–$1.65.

• Continued focus on strategic AI investments and maintaining financial flexibility.