Softbank (SFTBY) AI Stock Analysis

• Market Cap: $128.43B
• Dividend Yield: 0.22%
• Average Volume (3M): 679.03K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 2.33
• Revenue Growth: 8.09%
• EPS Growth: 45.49%
• Country: US
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.14
• Shares Outstanding: 11,423,696,000
• 10 Day Avg. Volume: 632,729
• 30 Day Avg. Volume: 679,033
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -8.62
• Enterprise Value/Market Cap: 319.89
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 10.30
• Enterprise Value/Ebitda: 9.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.13
• Revenue Forecast (FY): $49.00B

• Rating: 61 Neutral
• Price Target: $12.00 ▼(-76.59% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is driven by mixed financial quality—strong recent profitability and revenue momentum offset by negative TTM cash flows and meaningful leverage. Technicals are broadly neutral with modest positive bias, while the low P/E provides valuation support.

Positive Factors

Steady Revenue Growth

Sustained top-line expansion and a sharp TTM acceleration indicate durable demand across operating businesses, especially telecom. Over 2–6 months this trend supports recurring revenue base and provides a foundation for margin recovery if cash conversion improves, reducing sole reliance on investment exits for growth.

Asset-rich Balance Sheet

Positive equity and an asset-heavy balance sheet provide a structural cushion against shocks and preserve strategic optionality. Improvement in leverage from prior highs enhances refinancing and capital deployment flexibility over the medium term, supporting investments, liabilities management, and potential buybacks or reinvestment.

Diversified Business Model

A dual model—stable telecom cash flows plus high-upside investment returns—reduces single-channel risk. Telecom subscriptions provide recurring revenue and scale economics while the investment arm delivers episodic upside, giving the company multiple durable levers for earnings and strategic reinvestment over coming months.

Negative Factors

Weak Cash Conversion

Negative TTM operating and free cash flow show profits are not reliably converting into cash, raising persistent funding needs. Over a 2–6 month horizon this limits capacity to deleverage, fund capex, or support shareholder returns without asset sales or new financing, heightening liquidity and execution risk.

Elevated Leverage

High sustained debt levels increase interest burden and reduce financial flexibility, making the firm sensitive to rates and market access. Even with some improvement, meaningful leverage constrains strategic moves, raises refinancing risk, and could force asset dispositions if cash generation remains weak over the medium term.

Earnings Volatility and Investment Dependence

Heavy reliance on fair-value gains and exit timing makes earnings cadence unpredictable. This structural volatility complicates capital allocation and investor visibility, and can lead to abrupt swings in reported profitability and equity, impairing planning and confidence over the next several months.

Softbank 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 primarily generates earnings through (1) telecommunications operations and (2) investment activities, with additional contributions from other consolidated subsidiaries. 1) Telecommunications (operating business): Through its telecom subsidiaries (including its Japan communications business), SoftBank earns revenue from selling mobile and fixed-line connectivity and related services to consumers and enterprises. Typical revenue sources include monthly service fees (voice/data plans), device sales and related installment programs, enterprise connectivity/solutions, and other communications-related services. Profitability in this segment is driven by subscriber scale, average revenue per user, churn, network costs, and device procurement/pricing. 2) Investment returns (holding company/investing): SoftBank also makes money by investing in public and private companies and realizing gains (or losses) through fair value changes, dividends/distributions, and proceeds from partial or full exits (sales/IPO). This includes investments made directly and through managed investment vehicles such as the SoftBank Vision Funds. Returns can be episodic and market-sensitive because they depend on valuation movements, exit timing, and public market conditions. 3) Other consolidated businesses: When SoftBank consolidates operating subsidiaries, it may earn revenue from those companies’ underlying business activities. The scale and composition of these contributions can change over time based on acquisitions, dispositions, and changes in ownership/control. Key factors influencing earnings: SoftBank’s results are materially affected by equity market conditions and valuation changes in its investment portfolio, realized gains/losses from asset sales, performance and competitive dynamics in its telecom business, and financing costs associated with holding-company debt and investment leverage. Specific partnership revenue details are null.

Softbank Financial Statement Overview

Summary

Income statement is solid (revenue growth and strong recent profitability), but quality is tempered by volatile historical earnings, elevated leverage (debt consistently above equity), and weak cash conversion with negative TTM operating cash flow and free cash flow.

Income Statement

Revenue has grown steadily across the annual periods, and TTM (Trailing-Twelve-Months) shows a sharp acceleration in revenue growth alongside very strong profitability (high gross margin and a large jump in net income versus the prior annual period). That said, earnings have been highly volatile historically (multiple annual net losses in 2022–2024 followed by strong profit in 2025 and an unusually high-profit TTM), which reduces confidence in the durability of the current margin profile.

Balance Sheet

The balance sheet is asset-rich with positive equity, but leverage remains elevated: debt is consistently greater than equity (debt-to-equity roughly ~1.4–2.3 across periods). Leverage has improved from the 2022–2023 highs, and returns on equity rebounded strongly in 2025 and TTM (Trailing-Twelve-Months), but the company still carries meaningful balance-sheet risk given the size of total debt.

Cash Flow

Cash generation is the main weak spot. Operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months), and free cash flow is also negative in the most recent annual period, indicating profits are not consistently translating into cash. While operating cash flow was positive in each annual period and free cash flow was strong in 2022 (and modestly positive in 2023), the recent deterioration and large negative TTM free cash flow point to higher funding needs and weaker near-term financial flexibility.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.73T	7.24T	6.76T	6.57T	6.22T	5.63T
Gross Profit	3.99T	3.75T	3.54T	3.33T	3.27T	2.87T
EBITDA	4.56T	1.60T	1.47T	1.53T	1.57T	6.21T
Net Income	3.73T	1.15T	-227.65B	-970.14B	-1.71T	4.99T
Balance Sheet
Total Assets	55.60T	45.01T	46.72T	43.94T	47.54T	45.75T
Cash, Cash Equivalents and Short-Term Investments	6.66T	3.71T	6.44T	7.30T	6.09T	7.80T
Total Debt	25.23T	18.91T	16.19T	20.32T	22.32T	19.55T
Total Liabilities	37.46T	31.06T	33.49T	33.29T	35.84T	33.79T
Stockholders Equity	15.46T	11.56T	11.16T	9.03T	9.98T	10.21T
Cash Flow
Free Cash Flow	-2.08T	-650.59B	-372.06B	107.53B	1.89T	-89.64B
Operating Cash Flow	-718.21B	203.58B	250.55B	741.29B	2.73T	557.25B
Investing Cash Flow	-5.16T	-1.63T	-841.46B	547.58B	-3.02T	-1.47T
Financing Cash Flow	4.69T	-1.12T	-606.22B	191.52B	602.22B	2.19T

Softbank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFTBY, the sentiment is Negative. The current price of 51.25 is above the 20-day moving average (MA) of 12.40, above the 50-day MA of 13.26, and above the 200-day MA of 13.35, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFTBY.

Softbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	76 Outperform	$104.27B	5.14	20.98%	4.42%	0.20%	61.54%
TMUS	76 Outperform	$227.63B	20.84	18.18%	1.75%	7.30%	17.67%
VZ	72 Outperform	$208.69B	10.02	16.62%	6.60%	2.42%	102.17%
T	67 Neutral	$194.20B	8.14	20.35%	4.56%	1.98%	150.68%
AMX	62 Neutral	$73.14B	14.48	17.05%	2.69%	1.14%	83.48%
SFTBY	61 Neutral	$128.43B	25.04	28.25%	0.22%	8.09%	45.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%