PayPay and enterprise IT services lifted April-June results above market forecasts, while the company kept its fiscal 2027 outlook unchanged despite weaker consumer segment profit.
SoftBank, the domestic telecommunications subsidiary of SoftBank Group, reported stronger-than-expected consolidated results for the April-June quarter of fiscal 2026 under International Financial Reporting Standards on Tuesday, with net income rising 3% from a year earlier to ¥150 billion ($951.3 million). Revenue climbed 9% to a record ¥1.81 trillion ($11.5 billion), while operating profit increased 4% to ¥302.2 billion ($1.9 billion). Performance was driven mainly by the finance business, including PayPay, and by enterprise IT services. Segment profit in finance surged 76%, and the enterprise business rose 27%, while the consumer business slipped 1% as higher promotional spending to win smartphone subscribers weighed on earnings. The results topped analyst expectations compiled by S&P Global Visible Alpha, with net income about 11% above the ¥135.6 billion consensus forecast and revenue ahead of the ¥1.76 trillion estimate. Operating profit also exceeded expectations, supported by growth across corporate, distribution and financial services. SoftBank maintained its full-year guidance for the fiscal year ending March 2027, projecting revenue of ¥7.5 trillion ($47.6 billion), up 7%, operating profit of ¥1.1 trillion ($7.0 billion), and net income of ¥560 billion ($3.6 billion), up 2%. The outlook assumes smartphone plan price increases continue to take effect and that all five business segments perform steadily. Management also reiterated its medium- to long-term strategy of expanding AI infrastructure and related services, with growth across cloud and AI services, enterprise solutions, distribution, media and financial services expected to support future earnings. The stock fell 1.8% on Tuesday before the earnings announcement, lagging the Nikkei Stock Average, which closed about 0.2% higher. Attention is now shifting to whether the company can build enough momentum in the second half to meet its full-year targets.