SoftBank Group (9984) AI Stock Analysis

• Market Cap: ¥23.34T
• Dividend Yield: 0.25%
• Average Volume (3M): 22.76M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.54
• Revenue Growth: 7.31%
• EPS Growth: 44.73%
• Country: JP
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 43.09
• Shares Outstanding: 5,711,848,000
• 10 Day Avg. Volume: 20,688,840
• 30 Day Avg. Volume: 22,757,256
• PEG Ratio: -0.02
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 91.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,299.63
• Price Target Upside: 29.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 592.46
• Revenue Forecast (FY): ¥7.71T

• Rating: 66 Neutral
• Price Target: ¥4,805.00 ▲(17.51% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weak TTM cash flow (negative operating and deeply negative free cash flow) and elevated leverage, despite a strong rebound in reported profitability. Valuation is a major positive with a low P/E and very high dividend yield, while technical indicators are neutral-to-mildly constructive.

Positive Factors

Asset-management business model

SoftBank's core model is durable: recurring management fees, potential performance fees, and co-investment upside from Vision Funds. This generates diversified, non-operating revenue streams and allows capital recycling through strategic disposals, supporting cash inflows over multiple years.

Revenue growth and profitability rebound

A multi-year revenue uptrend and a return to strong net income indicate improving portfolio realizations and operating performance. If sustained, this underpins fee income, strengthens retained earnings and provides a foundation for repeatable monetizations and future investment funding.

Strategic, high-quality holdings (Arm)

Owning Arm provides long-term exposure to semiconductor IP royalties and licensing economics, which are structurally attractive given global semiconductor demand. A high-quality core holding reduces reliance on one-off trades and supports recurring value creation and strategic optionality.

Negative Factors

Weak cash generation (TTM)

Earnings-to-cash conversion is currently poor: negative operating and free cash flow in the TTM period raises sustainability concerns. Persistent cash burn limits ability to self-fund investments, forces asset sales or external financing, and increases liquidity and refinancing risk over the medium term.

Elevated leverage

Consistently high debt relative to equity amplifies sensitivity to market shocks and valuation swings in the investment portfolio. Elevated leverage raises interest and refinancing exposure, constrains strategic flexibility, and heightens downside risk if asset realizations deteriorate or rates rise.

Volatile earnings history

Large swings from multi-year losses to strong reported income imply reliance on timing of realizations and fair-value movements. This volatility weakens predictability of fee/carry outcomes and complicates capital planning, making long-term forecasting and risk assessment more uncertain.

SoftBank Group Business Overview & Revenue Model

Company Description

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through five segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Latin America Funds. The company offers mobile communications, broadband, and fixed-line communications services; and sells mobile devices. It is also involved in the internet advertising marketing, online advertising distribution, and e-book distribution services; planning and operation of fashion e-commerce website; mail-order sale of stationery and services; and design and development of mobile robots. In addition, the company designs microprocessor intellectual property and related technology; sells software tools; and generates, supplies, and sells electricity from renewable energy sources, as well as offers related services. Further, it provides alternative investment management, smartphone payment, PC software downloads, and banking services, as well as solutions and services for online businesses; distributes video, voice, and data content; manufactures, distributes, and sells IT-related products, as well as IT-related services; and manages funds. Additionally, the company operates a professional baseball team; and ITmedia, an IT information site, as well as manages and maintains baseball stadium and other sports facilities. It also plans and operates ZOZOTOWN, ZOZO, and ZOZOBASE websites. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SoftBank generates revenue through a combination of its telecommunications services, investments in technology companies, and management fees from its Vision Fund. The core revenue streams include subscription fees from telecommunications services, sales of devices, and value-added services. The Vision Fund also contributes significantly to earnings by taking equity stakes in high-growth tech companies and generating returns through exits, dividends, and management fees. Additionally, SoftBank benefits from strategic partnerships and joint ventures, which help in expanding its investment reach and fostering innovation across its portfolio companies.

SoftBank Group Financial Statement Overview

Summary

Income statement shows strong revenue growth and a sharp profitability rebound in 2025/TTM, but earnings durability is reduced by prior multi-year losses. Balance sheet leverage is consistently high (debt above equity), raising risk. Cash flow is the biggest concern, with TTM negative operating cash flow and deeply negative free cash flow despite high net income (weak earnings-to-cash conversion).

Income Statement

Revenue is growing steadily in the annual periods (from 2022 to 2025) and jumps sharply in TTM (Trailing-Twelve-Months). Profitability is volatile: annual results swung from large losses (2022–2024) to a return to solid profitability in 2025, and TTM (Trailing-Twelve-Months) shows very strong net income. Margins are generally strong at the gross level, but operating and net profitability have been inconsistent year-to-year, which lowers confidence in the durability of earnings.

Balance Sheet

The balance sheet is asset-heavy, but leverage is meaningfully elevated, with debt running above equity across all periods (debt-to-equity roughly 1.4–1.8x). Equity has improved versus earlier years, and returns on equity rebound strongly in 2025 and TTM (Trailing-Twelve-Months) after negative returns in 2022–2024. The key weakness is the consistently high leverage profile, which increases sensitivity to market and funding conditions.

Cash Flow

Cash generation is uneven and recently weak: TTM (Trailing-Twelve-Months) shows negative operating cash flow and deeply negative free cash flow, despite very high reported net income—an unfavorable conversion of earnings into cash. Annual cash flow was healthier in some years (notably 2022 and 2025 positive free cash flow), but free cash flow has swung between positive and negative multiple times. The main risk is the current cash burn profile in TTM (Trailing-Twelve-Months), which can pressure liquidity if sustained.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.66T	7.24T	6.76T	6.57T	6.22T	5.63T
Gross Profit	3.95T	3.75T	3.54T	3.33T	3.27T	2.87T
EBITDA	5.16T	1.60T	1.47T	980.26B	365.37B	1.45T
Net Income	3.68T	1.15T	-227.65B	-970.14B	-1.71T	4.99T
Balance Sheet
Total Assets	55.56T	45.01T	46.72T	43.94T	47.54T	45.75T
Cash, Cash Equivalents and Short-Term Investments	6.65T	3.71T	6.19T	6.93T	5.33T	5.32T
Total Debt	25.21T	18.91T	16.19T	16.05T	17.79T	16.46T
Total Liabilities	37.44T	31.06T	33.49T	33.29T	35.84T	33.79T
Stockholders Equity	15.45T	11.56T	11.16T	9.03T	9.98T	10.21T
Cash Flow
Free Cash Flow	-2.10T	118.98B	-372.06B	107.53B	1.89T	-89.64B
Operating Cash Flow	-773.41B	973.15B	250.55B	741.29B	2.73T	557.25B
Investing Cash Flow	-5.56T	-1.71T	-841.46B	547.58B	-3.02T	-1.47T
Financing Cash Flow	5.70T	-1.81T	-606.22B	191.52B	602.22B	2.19T

SoftBank Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4089.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9984, the sentiment is Negative. The current price of 4089 is below the 20-day moving average (MA) of 4317.85, below the 50-day MA of 4302.69, and above the 200-day MA of 3911.82, indicating a neutral trend. The MACD of -35.36 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 10.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9984.

SoftBank Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9433	76 Outperform	¥10.10T	15.13	13.75%	2.85%	3.34%	20.36%
9984	66 Neutral	¥23.34T	6.36	24.50%	0.25%	7.31%	44.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3774	60 Neutral	¥410.56B	17.99	15.67%	1.31%	12.48%	18.38%
9434	60 Neutral	¥10.18T	18.01	―	3.99%	7.79%	5.53%
9449	56 Neutral	¥312.57B	19.02	17.97%	1.36%	4.75%	17.02%
9432	56 Neutral	¥13.07T	11.76	10.59%	3.36%	2.10%	-9.29%