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SoftBank Corp.
(9434)
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Rating:66Neutral
Price Target:
¥238.00
▲(7.40% Upside)
Action:Downgraded
Date:08/05/26
The score is driven primarily by solid underlying financial performance (steady revenue, healthy operating profitability, and strong free cash flow) tempered by elevated leverage risk. Earnings-call outlook is supportive due to clear mid-term growth and dividend commitments, but near-term profit timing headwinds and operational risks limit upside. Technically, the stock shows mild trend support with largely neutral momentum, while valuation is helped by the dividend but held back by a not-particularly-cheap P/E.
Positive Factors
Cash generation / FCF
Consistent, large operating cash flow and materially positive free cash flow provide durable funding for dividends, capex, debt service and strategic investments. Strong absolute FCF enhances flexibility in a capital‑intensive telecom model and supports the company’s midterm investment capacity.
Negative Factors
Leverage / balance sheet
Elevated net leverage increases refinancing and interest sensitivity for a capital‑intensive telecom. Although trends show improvement, sustained ~mid‑2x net leverage limits strategic flexibility, raises funding costs if markets tighten, and heightens downside risk under profit stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / FCF
Consistent, large operating cash flow and materially positive free cash flow provide durable funding for dividends, capex, debt service and strategic investments. Strong absolute FCF enhances flexibility in a capital‑intensive telecom model and supports the company’s midterm investment capacity.
Read all positive factors
SoftBank Corp. (9434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.67T
Dividend Yield3.85%
Average Volume (3M)59.70M
Price to Earnings (P/E)19.7
Beta (1Y)0.27
Revenue Growth7.55%
EPS Growth3.35%
CountryJP
Employees58,432
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)11.43
Shares Outstanding48,072,367,000
10 Day Avg. Volume58,027,199
30 Day Avg. Volume59,702,612
Financial Highlights & Ratios
PEG Ratio5.68
Price to Book (P/B)3.40
Price to Sales (P/S)1.43
P/FCF Ratio12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥257.00Price Target Upside15.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)11.92
Revenue Forecast (FY)¥7.51T
SoftBank Corp. Business Overview & Revenue Model
Company Description
SoftBank Corp. maintains an affiliate relationship with PayPay Bank Corporation, possessing an indirect ownership interest of 14.87%....
How the Company Makes Money
SoftBank Corp. primarily earns revenue by selling connectivity and related services to consumers and businesses. A major revenue stream is its consumer telecommunications business, where it charges recurring fees for mobile voice and data plans an...
SoftBank Corp. Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong achievements — record consolidated revenue (JPY 7.0 trillion), record net income (+4.7% YoY), doubled Financial segment income, Enterprise revenue expansion (+13.2% in business solutions) and robust AI infrastructure investment and free cash flow. Management presented an ambitious midterm plan (operating income JPY 1.7 trillion, net income JPY 700 billion) and committed to continued dividends. Counterbalancing these positives are a few material near‑term headwinds: ASKUL ransomware impacts on Media & EC, short‑term profit pressure from device support and acquisition amortization (~JPY 20–30bn items), higher churn and weaker net adds, a gap between operating income growth and net income due to minority interests/tax effects, and timing uncertainty for AI monetization (H1 FY2026 profit risk). Overall, the positive momentum and strong balance sheet appear to outweigh the near‑term operational and timing risks.Positive Updates
Record Consolidated Revenue
Consolidated revenue hit a record JPY 7.0 trillion for FY2025, with growth across all segments and Financial and Distribution posting double‑digit growth.
Negative Updates
ASKUL Ransomware Impact on Media & EC
ASKUL suffered a ransomware attack that reduced Media & EC revenue (revenue decreased excluding ASKUL). Management noted one‑time negative impacts; a step‑acquisition remeasurement gain partially offset results, but Media & EC declined on an ex‑ASKUL basis.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Consolidated Revenue
Consolidated revenue hit a record JPY 7.0 trillion for FY2025, with growth across all segments and Financial and Distribution posting double‑digit growth.
Read all positive updates
Company Guidance
SoftBank guided to sustained revenue and profit growth with a mid‑term target of operating income of JPY 1.7 trillion and net income of JPY 700 billion (over the next five years), an FY26 dividend of JPY 8.8 per share, and a commitment to continuous dividend increases; financial targets include maintaining consolidated adjusted ROE around 20% and adjusted net leverage in the mid‑2x range (current net leverage 2.2x, net debt down JPY 60 billion YoY), with about JPY 1 trillion of investment capacity. Key metrics cited: FY25 revenue JPY 7 trillion, enterprise and distribution revenue each over JPY 1 trillion, smartphone subs 32 million (churn ~1.70–1.71%), ARPU up ~JPY 30, FY25 capex JPY 340 billion, primary free cash flow after dividend JPY 98.1 billion, GMV for payments above JPY 10 trillion, and roughly JPY 200 billion invested in AI infrastructure over the last three years; management flagged H1 FY26 profit headwinds (loss of one‑time gains, higher sales commissions) but expects H2 recovery driven by price revisions and AI/cloud monetization (aiming to double cloud & AI revenue and segment income by FY30 versus FY25), with Enterprise and Financial segments as core growth drivers.SoftBank Corp. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.19T | 7.04T | 6.54T | 6.08T | 5.91T | 5.69T |
| Gross Profit | 3.45T | 3.38T | 3.16T | 2.93T | 2.72T | 2.80T |
| EBITDA | 1.85T | 1.82T | 1.74T | 1.64T | 1.75T | 1.73T |
| Net Income | 550.82B | 550.76B | 519.98B | 489.07B | 531.37B | 517.08B |
Balance Sheet | ||||||
| Total Assets | 19.34T | 18.50T | 16.10T | 15.52T | 14.68T | 13.10T |
| Cash, Cash Equivalents and Short-Term Investments | 1.65T | 1.44T | 1.61T | 2.15T | 2.19T | 1.66T |
| Total Debt | 7.42T | 6.48T | 5.96T | 6.32T | 6.13T | 6.02T |
| Total Liabilities | 14.70T | 13.83T | 11.84T | 11.59T | 11.00T | 9.88T |
| Stockholders Equity | 2.91T | 2.96T | 2.74T | 2.38T | 2.22T | 1.96T |
Cash Flow | ||||||
| Free Cash Flow | 707.27B | 823.29B | 621.21B | 685.62B | 546.53B | 506.83B |
| Operating Cash Flow | 1.30T | 1.39T | 1.37T | 1.24T | 1.16T | 1.22T |
| Investing Cash Flow | -1.19T | -1.12T | -971.93B | -893.40B | -123.87B | -950.57B |
| Financing Cash Flow | -31.52B | -288.99B | -979.68B | -391.30B | -526.17B | -312.19B |
SoftBank Corp. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥357.04B | 25.58 | 13.57% | 1.74% | 3.09% | 12.81% | |
74 Outperform | ¥631.41B | 25.66 | 16.08% | 1.12% | 9.02% | 21.15% | |
69 Neutral | ¥10.52T | 15.52 | 14.41% | 2.71% | 3.58% | 11.30% | |
66 Neutral | ¥10.67T | 19.70 | ― | 3.88% | 7.55% | 3.35% | |
60 Neutral | ¥3.12B | 10.83 | ― | ― | 8.20% | 2.55% | |
57 Neutral | ¥12.99T | 12.10 | 10.96% | 3.50% | 5.14% | 5.33% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:9434
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.