Softbank (SFTBY) AI Stock Analysis

• Market Cap: $146.85B
• Dividend Yield: 0.22%
• Average Volume (3M): 679.03K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 2.29
• 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: 298.70
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 10.99
• Enterprise Value/Ebitda: 9.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.95
• Revenue Forecast (FY): $49.51B

• Rating: 61 Neutral
• Price Target: $15.50 ▼(-69.76% 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

Revenue Growth & Profitability

Consistent revenue expansion and a recent strong profitability episode indicate improving product/market fit across telecom and investment operations. Over 2–6 months this supports cash generation potential and operational leverage if margins persist, underpinning reinvestment and servicing obligations.

Asset-rich Balance Sheet

Positive equity and a large asset base give the company capacity to absorb shocks and access collateral for financing. Improvement in leverage since 2022–2023 suggests de-risking momentum, which improves medium-term financial flexibility for capex, investments, or liability management.

Diversified Revenue Streams

Multiple durable revenue pillars — recurring telecom services plus Vision Fund investment returns and public-stake income — reduce dependence on any single cycle. This structural diversity supports resilience over months, giving optionality to shift capital between operations and investments.

Negative Factors

Weak Cash Generation

Negative trailing cash flows mean reported profits are not converting to cash, forcing higher external funding needs. Over the medium term this limits liquidity, raises refinancing and interest risks, and constrains the firm's ability to fund capex, dividends, or opportunistic investments.

Elevated Leverage

Sustained high debt levels increase interest burdens and reduce strategic flexibility. With leverage still material despite improvement, the company remains sensitive to rate moves and cash-flow swings, elevating refinancing and solvency risk over the coming months if cash conversion doesn't improve.

Earnings Volatility

Large swings in net income, driven by uneven investment gains and losses, undermine predictability of margins and retained earnings. This volatility reduces confidence in sustainable profitability and complicates capital allocation and forecasting for the next several quarters.

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 generates revenue through multiple key streams. Its telecommunications division, SoftBank Mobile, earns income from mobile phone services, broadband subscriptions, and enterprise solutions. Additionally, the company’s Vision Fund, one of the largest technology investment funds globally, generates revenue through capital appreciation and management fees from its investments in startups and technology-centric firms. The firm also earns revenue from its stake in the publicly traded companies in which it invests, including major firms like Alibaba. Moreover, strategic partnerships and joint ventures with other technology firms enhance its revenue potential through collaborative projects and shared innovations.

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: Positive
• 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 14.02, above the 50-day MA of 13.82, and above the 200-day MA of 13.01, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 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	78 Outperform	$110.89B	5.74	21.92%	4.42%	0.20%	61.54%
TMUS	76 Outperform	$238.12B	22.34	18.18%	1.75%	7.30%	17.67%
VZ	72 Outperform	$210.80B	12.35	16.86%	6.60%	2.42%	102.17%
T	67 Neutral	$196.09B	9.18	20.43%	4.56%	1.98%	150.68%
AMX	62 Neutral	$79.29B	18.23	22.81%	2.69%	1.14%	83.48%
SFTBY	61 Neutral	$146.85B	7.41	15.53%	0.22%	8.09%	45.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%