SoftBank Group shares fell in Tokyo on Wednesday, 11 November 2026, after the Japanese technology investor swung to a net loss of 1.115 trillion yen, equivalent to $7.02 billion, for the three months to September. It was the company's first quarterly loss in nearly two years, and it missed analysts' expectations of a narrow net profit.

The stock was 4.0% lower on Wednesday morning in Tokyo after falling as much as 11% earlier in the session. The fall came a day after the shares had closed 13.9% higher at 3,872 yen, riding a broad rebound in technology stocks before the results were released after the market close on Tuesday.

A $3.7bn bill for AI power equipment

The biggest single hit to the quarterly result was a $3.7 billion loss linked to power generation equipment ordered for artificial intelligence data centres in the United States. SoftBank recorded the charge after changing its procurement plans for the equipment, writing down non-refundable advance payments it had made to secure turbines and other power gear for an eight-gigawatt project in Ohio and other US data centres.

Chief Financial Officer Yoshimitsu Goto said the company had rushed to secure equipment that was in short supply in a young industry, and that it now needed to reassess whether what it had secured was really the best. The Wall Street Journal reported that SoftBank had ordered so many power plant turbines that it was left with reservations for far more than it could possibly use.

Elon Musk wrote on X on 6 November that SoftBank was defaulting on its turbine orders. Goto said at the results briefing on 10 November that there was no such default.

Revenue beat forecasts as portfolio values fell

The top line was stronger than expected. Revenue for the July to September quarter came in at 2.22 trillion yen, ahead of the 2.02 trillion yen consensus estimate, supported by growth in telecommunications and artificial intelligence computing.

Below that, however, declines in the value of holdings including chipmaker Intel and South Korean e-commerce company Coupang weighed on the result, alongside higher financing costs. Financing costs climbed to 461.9 billion yen in the quarter, driven by a margin loan secured against the company's stake in Arm Holdings, heavy bond issuance and generally higher funding rates.

Shares have more than halved since June

SoftBank's stock has more than halved from its peak in June as enthusiasm for the artificial intelligence trade has waned. The shares were down 12% so far this year through Tuesday, a sharp contrast with a 92% jump in 2025, and had fallen 44.8% between 30 September and 6 November.

The balance sheet still looks resilient. Net asset value rose to a record 59.8 trillion yen at the end of September, with the loan-to-value ratio at 15.9% and about 5 trillion yen of liquidity. At 9 November prices, however, pro forma net asset value stood at about 44.7 trillion yen, showing how exposed the group is to the recent technology sell-off.

OpenAI remains central to the investment case. SoftBank completed a further 3 trillion yen investment in the ChatGPT maker during the period, taking its stake to roughly 13%. Any increase in OpenAI's valuation from a new funding round has not yet been reflected in the results. SoftBank also said it would commit, together with Grab and Malaysia's PETROS, a combined $1.85 billion in initial capital to develop AI infrastructure in Malaysia.

What investors watch next

Analysts at Macquarie said SoftBank's broad exposure across automation, software, data centres and semiconductors had increased its sensitivity to the recent pullback in AI-related shares, although they still saw support from long-term structural AI tailwinds and the strength of its balance sheet. Investors will now watch for an official revaluation of OpenAI and for signs that financing costs are stabilising.

Frequently asked questions

Why did SoftBank post a $7 billion loss? The group reported a net loss of 1.115 trillion yen, about $7 billion, for the three months to September, reversing a 2.5 trillion yen profit a year earlier. The largest hit was a $3.7 billion writedown on power equipment for US data centres, alongside falls in holdings such as Intel and Coupang and higher financing costs.

What caused the $3.7 billion charge? SoftBank wrote down non-refundable advance payments for power generation equipment it had ordered for AI data centres in the US, including an eight-gigawatt project in Ohio, after changing its procurement plans.

How far have SoftBank shares fallen? The shares were 4% lower on Wednesday morning after falling as much as 11% earlier. They have more than halved from their June peak and were down 12% so far this year through Tuesday, after rising 92% in 2025.