Japanese technology company SoftBank Group has reported its first profit in four years, driven by significant gains from its investment portfolios. The Tokyo-based conglomerate posted a profit of 1.15 trillion yen ($7.8 billion) for the fiscal year ending March, marking a substantial turnaround from the 227.6 billion yen loss recorded in the previous year.
SoftBank’s annual sales rose 7% to 7.2 trillion yen ($49 billion), with the company’s diverse investment portfolio playing a crucial role in its financial recovery. The company’s stakes in Chinese e-commerce giant Alibaba and T-Mobile, a European mobile communications provider, both appreciated in value during the period, contributing to the positive financial outcome.
One of the key factors behind SoftBank’s resurgence is its strategic focus on artificial intelligence (AI). The company has a significant partnership with OpenAI, the U.S.-based AI research organization behind ChatGPT. SoftBank remains committed to promoting AI-related technology and has been actively investing in new AI companies, including U.S.-based firms Glean and Helion.
In a recent move, SoftBank agreed to acquire Ampere, a U.S. semiconductor design company specializing in cloud and AI-focused solutions, for $6.5 billion. The transaction is expected to be completed in the second half of this year.
SoftBank’s investments in various companies, including ByteDance, the Chinese multinational behind TikTok, and PayPay, a popular Japanese mobile payment application, also contributed to its financial success. The company is planning an initial public offering (IPO) for PayPay, which has gained significant traction in Japan with over 68 million users.
The British semiconductor and software design company Arm, in which SoftBank is a major investor, reported strong results and royalties, further bolstering SoftBank’s bottom line. Gains from SoftBank’s Vision Funds also played a role in the company’s financial recovery.
Despite the positive financial results, SoftBank has expressed caution about the future due to global uncertainties, including President Donald Trump’s tariff policies and tensions between the U.S. and China. The company remains focused on its strategic investments and continues to navigate the complex global economic landscape.
