SoftBank (SFTBY), the Japanese investment company led by Masayoshi Son, will report its Q4 2025 earnings on Wednesday, May 13. Investors are closely watching the company’s growing AI bets, especially its investments in OpenAI and Arm Holdings (ARM). The stock has gained 32% year-to-date and 181% over the past year.
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Wall Street analysts expect the company to report earnings per share of about $0.16, down from $0.30 in the year-ago quarter. Meanwhile, revenue is expected to come in near $13 billion, slightly above the roughly $12.7 billion reported a year earlier.
OpenAI and Arm Remain Key Focus Areas
According to top TD Cowen analyst Krish Sankar, SoftBank’s roughly 11% stake in OpenAI could now be worth around $80 billion after the ChatGPT maker’s latest funding round sharply increased its valuation. SoftBank is also expected to invest another $30 billion into OpenAI through 2026.
Beyond OpenAI and ARM, SoftBank continues investing heavily in AI infrastructure, robotics, and data centers tied to long-term AI growth.
Debt Concerns Are Growing
While investors remain optimistic about SoftBank’s AI strategy, concerns are also rising over the amount of borrowing needed to fund those investments.
Reuters recently reported that S&P Global Ratings revised SoftBank’s credit outlook to negative following the company’s latest OpenAI-related commitments. The company also secured a $40 billion bridge loan earlier this year to support its AI spending plans.
Some analysts believe investors will pay closer attention to SoftBank’s funding strategy and future spending plans than the quarterly profit numbers themselves.
Analysts Still See Long-Term AI Upside
Despite the debt concerns, several analysts remain positive on SoftBank’s long-term AI opportunity. Recently, Nomura raised its price target on the stock, citing future growth potential from AI chips, robotics, and SoftBank’s broader AI ecosystem.
Is SoftBank a Good Stock to Buy?
On Wall Street, SoftBank currently carries a Hold rating based on one analyst rating issued over the past three months. TD Cowen analyst Krish Sankar currently has a $13 price target on the stock, implying about 31% downside from current levels.
