SoftBank Corp. is accelerating its transformation from a telecommunications operator to an AI infrastructure provider, with its latest financial results underscoring this strategic shift. For the fiscal year ending March 31, 2026, net profit attributable to owners of the parent company reached 550.8 billion yen, marking a 4.7% year-on-year increase and setting a new historical record, surpassing the initial target of 543.0 billion yen. The company also announced plans to commence large-scale battery cell production at its Sakai City factory in Osaka to support the power needs of its AI data centers. It will establish two new joint ventures, aiming to generate over 100 billion yen in annual revenue from its battery business by fiscal year 2030. These strategic moves directly address the explosive demand for data processing and power infrastructure in the AI era. In its new mid-term management plan, SoftBank set targets to achieve consolidated operating profit of 1.7 trillion yen and net profit attributable to owners of the parent of 700 billion yen by fiscal year 2031, representing significant increases from current levels. For investors monitoring SoftBank's transformation, these performance figures and strategic announcements send a clear signal of growth.
**Annual Performance Exceeds Expectations, Net Profit Hits Historic High** For the fiscal year ending March 31, 2026, SoftBank's operating revenue grew 7.6% year-on-year to 7,038.7 billion yen, also a record high, with all five business segments reporting revenue growth. Operating profit increased 5.4% to 1,042.6 billion yen, while net profit rose 10.9% to 726.6 billion yen. By segment, the Financial segment delivered the most standout performance, with operating profit more than doubling, surging 107.1% to 86.3 billion yen. This was primarily driven by the continued expansion of transaction volume in PayPay's QR code payment and credit card businesses, along with valuation benefits from PayPay Corporation's listing in the United States in March 2026. The Enterprise segment's operating profit grew 13.0% to 192.4 billion yen, fueled by strong demand for cloud computing and security solutions. The Consumer segment's operating profit increased 3.8% to 550.8 billion yen, supported by stable growth in its mobile communications subscriber base. The Media & e-Commerce segment faced headwinds. A system failure at ASKUL Corporation in October 2025 contributed to a 7.1% year-over-year decline in the segment's operating profit to 240.4 billion yen, making it the only business segment to report a profit decrease. From a cash flow perspective, operating cash inflow was 1,393.8 billion yen, a slight increase of 25.9 billion yen year-on-year. Primary Free Cash Flow (Primary FCF) was positive at 633.6 billion yen, up 30.3 billion yen, reflecting the company's robust cash generation capability from its core operations even as it continues to invest heavily in long-term growth areas like AI computing infrastructure.
**Large-Scale Battery Manufacturing to Power AI Data Centers** SoftBank announced it will initiate large-scale battery cell production at its Sakai City factory in Osaka, partnering with South Korean firms Cosmos Lab and DeltaX Co. The goal is to begin mass production in the fiscal year starting April 2027, with an initial annual capacity set at 1 GWh. According to BloombergNEF data, this would make the facility one of Japan's largest energy storage production bases. It has been reported that SoftBank may expand capacity to several GWh in the future. Under the collaboration, Cosmos Lab will contribute its zinc-halogen technology to enhance battery safety, while DeltaX Co. will focus on high-energy-density design. For this business, SoftBank will establish two joint ventures: AX Factory, positioned as a hub for AI data center operations and hardware manufacturing, and GX Factory, tasked with manufacturing next-generation batteries, solar panels, and related products. The company aims for its new battery business to generate annual revenue exceeding 100 billion yen (approximately $636 million) by fiscal year 2030. These battery products will be prioritized for powering SoftBank's own AI data centers but will also be sold for grid peak shaving, factory use, and industrial and residential markets, with a mid-term goal of expanding into overseas markets.
**New Mid-Term Plan Focuses on AI Transformation with Ambitious 2031 Profit Targets** SoftBank concurrently released a new mid-term management plan covering fiscal years 2027 to 2031 in May 2026. The core strategy, named "Activate AI for Society," aims to infuse AI potential across all business segments and drive group-wide growth through the commercialization of AI infrastructure and AI services. Regarding specific financial targets, the company plans to achieve consolidated operating profit of 1.7 trillion yen and net profit attributable to owners of the parent of 700 billion yen in fiscal year 2031, both of which would be record highs. For fiscal year 2027, SoftBank provided guidance for operating revenue of 7,500.0 billion yen (up 6.6% year-on-year), operating profit of 1,100.0 billion yen (up 5.5%), and net profit attributable to owners of the parent of 560.0 billion yen (up 1.7%). Operating profit is expected to grow across all business segments, with the Enterprise segment projected to see the highest increase at 19.5%, primarily due to sustained demand for cloud computing, AI, and mobile services. Losses in the "Other" segment are expected to widen, mainly due to increased R&D and related expenses driven by next-generation social infrastructure development. Regarding shareholder returns, SoftBank reaffirmed its commitment to increasing the annual dividend per common share each year. The planned annual dividend per share for fiscal year 2027 is 8.80 yen, up from 8.60 yen in fiscal year 2026, with a payout ratio of approximately 76.2%.
**Accelerated Strategic Moves Expand AI Ecosystem** During the fiscal year, SoftBank made numerous moves to build its AI ecosystem. In November 2025, SoftBank, SoftBank Group, and OpenAI jointly established SB OAI Japan GK. This venture will leverage OpenAI's technology to exclusively offer the "Crystal intelligence" integrated enterprise AI solution to the Japanese corporate market. Around the same time, SoftBank's SB Intuitions Corp. launched a lightweight version, "Sarashina mini," based on its self-developed large language model "Sarashina," and opened API access for enterprise clients, focusing on Japanese language understanding and adaptation to local business scenarios. In cloud infrastructure, SoftBank entered into a partnership with Oracle Corporation in October 2025 to advance "sovereign cloud" services, ensuring data and systems are operated entirely within Japan. It also plans to support GPU environments and generative AI workloads through "Cloud PF Type A." At the telecom network level, SoftBank is exploring the application of HAPS (High Altitude Platform Station) technology for commercial services, planning to launch pre-commercial HAPS services in Japan in 2026. It also established a fiber-optic line joint venture with Sony Network Communications Inc. to enhance network quality. These initiatives collectively form part of the company's long-term strategy, led by its CEO, to reshape SoftBank into an AI-enabling platform. This vision aligns closely with the broader ambition of SoftBank Group's founder to secure a greater role in the global AI race.
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