SoftBank Corp. Raises Full-Year Guidance Amid Leadership Transition

SoftBank JP3436100006

Japan's telecommunications subsidiary, SoftBank Corp., has upgraded its annual financial forecast, capitalizing on a period of robust operational performance. This positive momentum coincides with a strategic management reshuffle designed to usher in a new generation of leadership. The departure of the company's finance chief, announced alongside these strong results, raises questions about the strategic direction during this transition.

Bolstered by solid results through the first three quarters of its fiscal year ending March 31, 2026, the company has revised its annual targets upward. It now projects full-year revenue of 6.95 trillion yen and an operating profit of 1.02 trillion yen. The net income forecast has also been increased to 543 billion yen, indicating management's confidence in the final quarter.

For the nine-month period, revenue climbed 8% year-over-year to reach 5.2 trillion yen, with operating profit hitting 884 billion yen. The third quarter was particularly strong, delivering double-digit profit growth.

Diversified Drivers Beyond Core Telecom

Growth was broad-based across the company's portfolio. While the core mobile business performed well, the financial services segment notably doubled its operating profit. The enterprise and distribution divisions also posted gains.

A significant shift is evident in the consumer segment: despite a slight decline in smartphone subscriptions, both revenue and profit increased. This improvement validates the company's strategic pivot toward prioritizing service quality and higher-value, long-term customers over sheer subscriber volume.

The overall market sentiment surrounding the SoftBank brand is further buoyed by the exceptional performance of chip designer Arm. As a key holding of parent company SoftBank Group, Arm's record revenues, fueled by the artificial intelligence boom, provide an additional tailwind.

Key Financial Figures

• Nine-Month Revenue: 5.2 trillion yen (an 8% increase year-over-year)
• Nine-Month Operating Profit: 884 billion yen
• New Full-Year Revenue Target: Raised to 6.95 trillion yen
• New Full-Year Operating Profit Target: Raised to 1.02 trillion yen
• Net Income Forecast: Increased to 543 billion yen

Management Reshuffle in a Time of Strength

CEO Junichi Miyakawa announced a rejuvenation of the executive team, framing the current period of strength as an opportune moment to hand responsibilities to a new generation. As part of this restructuring, Chief Financial Officer Kazuhiko Fujihara will be stepping down from his role.

Investors are now focused on the fiscal year-end results on March 31, 2026. The final report will reveal whether the strategic realignment of the customer base can sustain this enhanced profitability over the long term.