SoftBank Group Corp. reported an earnings per share of -1.62, missing the estimated 1.91, reflecting financial struggles due to negative returns from its Vision Fund investments.
The company generated a revenue of approximately $11.66 billion, surpassing the estimated $11.58 billion, yet faced a net loss of $2.5 billion against an expected $2 billion profit.
SoftBank is pivoting towards artificial intelligence with a substantial $40 billion investment in OpenAI, positioning itself as OpenAI’s largest backer.
SoftBank Group Corp., trading under the symbol SFTBF on the PNK exchange, is a prominent Japanese technology investor known for its significant investments in various tech sectors. The company operates through its Vision Fund, which invests in both public and private companies. Despite its influential position, SoftBank faces stiff competition from other tech investment firms globally.
On February 12, 2025, SoftBank reported an earnings per share of -1.62, missing the estimated 1.91. This negative earnings per share reflects the company’s financial struggles, primarily due to its Vision Fund investments turning negative. The Vision Fund recorded a loss of $2.4 billion in the quarter ending December 31, reversing gains from the previous two quarters.
Despite the earnings miss, SoftBank generated a revenue of approximately $11.66 billion, surpassing the estimated $11.58 billion. However, this figure contrasts with the reported revenue of $12.2 billion, which fell short of expectations. The discrepancy highlights the ongoing volatility and uncertainty in SoftBank’s financial performance, as highlighted by Proactive Investors.
SoftBank’s net loss of $2.5 billion starkly contrasts with analyst expectations of a $2 billion profit. This loss is primarily due to declining valuations in its Vision Fund investment arm, with unrealized valuation losses from investments in companies like Coupang and Didi Global. These financial setbacks raise concerns about SoftBank’s ability to fund its ambitious investment plans.
In response to these challenges, SoftBank is pivoting towards artificial intelligence, planning a substantial $40 billion investment in OpenAI. This move positions SoftBank as OpenAI’s largest backer, with a commitment of $3 billion annually to OpenAI’s technology. The company has also launched SB OpenAI Japan, a joint venture aimed at marketing AI services to major Japanese companies.
