SoftBank exceeds forecasts on Intel gains, shares drop

SoftBank’s Q1 profit fell 18% to 347.3 billion yen but beat forecasts on Intel and ByteDance gains. Shares dropped over 4% as investors questioned profit sustainability.

SoftBank Group reported a first-quarter net profit of 347.3 billion yen ($2.2 billion), an 18% decline year-on-year. Despite the drop, the results exceeded analyst expectations, driven by substantial gains from investments in Intel and ByteDance. The company benefited from a 1.33 trillion yen windfall after Intel shares surged nearly 400% in 2026, alongside a notable increase in ByteDance’s valuation. However, SoftBank’s stock price fell over 4% as investors questioned the sustainability of these profits. Concerns centered on a sharp decline in Vision Fund segment income and ongoing operational challenges. The value of SoftBank’s OpenAI holdings remained unchanged, but the company secured a new $10 billion credit facility backed by OpenAI shares. Analysts noted that while the profit beat was largely due to mark-to-market gains, operational results and cash quality remain under scrutiny. SoftBank faces risks if tech valuations or financing conditions worsen.