Prime Highlight
- SoftBank Group shares surged after its telecom unit raised its full-year outlook, reflecting strong business momentum.
- Growing strength at Arm Holdings has reinforced confidence in SoftBank’s long-term growth, driven by rising demand from data centers and cloud companies.
Key Facts
- SoftBank Corp reported an 8% rise in operating income to 884 billion yen and increased its full-year revenue and profit forecasts.
- Arm posted record quarterly revenue of $1.24 billion in late 2025, mainly supported by strong demand from data centers.
Background:
Shares of SoftBank Group Corp surged more than 10% on Thursday after its telecom subsidiary raised its full-year earnings outlook, while growing optimism around Arm Holdings strengthened the group’s long-term artificial intelligence narrative.
SoftBank Corp, the group’s telecommunications arm, reported solid results for the first nine months of fiscal 2025, posting revenue growth of 8% year on year to a record 5.2 trillion yen. Operating income rose 8% to 884 billion yen, showing stable performance across the business.
On the back of this growth, the company raised its full-year forecast. It now expects revenue of 6.95 trillion yen, up from its previous estimate of 6.7 trillion yen, while operating income is projected to reach 1.02 trillion yen. Management said the results highlight consistent progress toward its fiscal targets, even as it adjusts parts of its consumer strategy to focus more on long-term profitability than rapid subscriber growth.
The consumer segment delivered modest improvements, with revenue rising 3% and segment income increasing 6%. Smartphone subscriber numbers fell by about 100,000 in the third quarter after the company tightened its customer acquisition strategy to improve profit margins.
At the same time, investor confidence was lifted by renewed strength in Arm Holdings, the British chipmaker in which SoftBank owns a major stake. Arm’s recent share rally has increased expectations that the company will benefit from rising demand for artificial intelligence and cloud computing.
Arm reported record quarterly revenue of $1.24 billion in the final quarter of 2025, driven mainly by strong data center demand. Although licensing revenue missed some market expectations, overall results came in above widely followed analyst forecasts.
The company’s data center business is growing quickly, with royalty revenue more than doubling from last year. Arm is also expanding its reach with major cloud companies, reducing its reliance on smartphones.