SoftBank Posts 7 Billion Dollar Net Loss in Fiscal Second Quarter as AI Selloff Hammers Portfolio

SoftBank Group reported a net loss of roughly 1.12 trillion yen, or about $7.1 billion, in its fiscal second quarter ended September 2026, marking its first quarterly loss in almost two years. The result was a sharp reversal from a profit in the same period a year earlier and badly missed analyst expectations: a consensus of eight analysts had forecast a profit of around 129 billion yen.

The loss was driven by a broad selloff in AI-linked and technology stocks that battered the value of SoftBank's investment portfolio. Worries over AI spending levels and demand for AI infrastructure weighed on the conglomerate's top holdings, including its high-profile stake in OpenAI. The tech rout had already sent SoftBank's own shares down sharply in the weeks leading up to the earnings release, with the stock falling as much as 9 to 11 percent on individual trading days during the period.

The results cover the fiscal second quarter for the year ending March 31, 2027. The miss against consensus profit estimates underscores how exposed SoftBank remains to swings in technology valuations, particularly as investor skepticism about the return on AI infrastructure spending has grown across global markets.