SoftBank Posts First Annual Profit in Four Years on AI Investment Gains

SoftBank Group reported its first annual profit in four years, posting a net income of approximately $7.77 billion for the fiscal year ending March 31, reversing the previous year's loss. This strong performance was driven by significant investment gains, including a 3.70 trillion yen gain primarily from its Investment Business and SoftBank Vision Funds, fueled by increased enthusiasm for artificial intelligence (AI) and related technology holdings. The company’s telecom sector also contributed to robust quarterly profits, with a net income of about $3.5 billion in the January-March quarter, surpassing expectations. SoftBank has been aggressively investing in AI infrastructure, including a $6.5 billion acquisition of U.S. chipmaker Ampere Computing and a $500 billion joint AI infrastructure project with OpenAI called Project Stargate. Despite some losses in parts of its Vision Fund 2 portfolio, the overall optimism around AI drove up tech stock valuations, significantly boosting SoftBank’s earnings. The company’s board has proposed maintaining its dividend, reflecting confidence in continued growth amid global economic uncertainties.