Skip to content
Berawang News
Stocks

SoftBank Posts $7 Billion Quarterly Loss on Data Center Hit

SoftBank Group lost 1.1 trillion yen ($7 billion) in July–September after a $3.7 billion U.S. data center charge and higher financing costs. Shares fell Wednesday.

By Berawang News Staff
Earnings graphic for SoftBank's second quarter with a red bar and a minus $7 billion figure
Berawang News

SoftBank Group, a major investor in OpenAI, reported a net loss of 1.1 trillion yen (about $7 billion) for its July–September quarter on Tuesday, November 10, 2026. A year earlier it had earned 2.5 trillion yen, a profit that Reuters said was driven by a rise in the value of its OpenAI stake.

SoftBank shares were down 3.7% in Wednesday trading on November 11, the Associated Press reported, after jumping about 14% on Tuesday ahead of the results, according to Reuters.

What drove the loss

Two costs stood out:

  • A U.S. data center charge. A SoftBank subsidiary booked a loss of $3.7 billion on advance payments for equipment for U.S. data center projects, including a large development in Pike County, Ohio, after its plans changed, Reuters reported. "These could not be refunded when cancelled and also incurred fees," Chief Accounting Officer Kazuko Kimiwada said, according to Reuters. SoftBank can get rebates of up to $2.1 billion on future purchases, Reuters said.
  • Higher borrowing costs. Financing costs more than doubled to 462 billion yen, according to Reuters. Seoul Economic Daily put the year-earlier figure at 174.7 billion yen and blamed more bonds outstanding and higher interest rates.

The loss was far worse than expected. Three analysts polled by LSEG had forecast anything from a 233 billion yen profit to a 113 billion yen loss, Reuters said.

Key numbers

Measure

July–Sept. 2026

July–Sept. 2025

Net income (loss)

−1.1 trillion yen (≈ −$7 billion)

2.5 trillion yen

Financing costs

462 billion yen

174.7 billion yen

U.S. data center loss

$3.7 billion

—

Money raised in the quarter

$56.5 billion (a record)

—

Sources: Reuters; Seoul Economic Daily (year-ago financing costs).

Why U.S. investors should care

SoftBank has spent $64.6 billion for about 13% of OpenAI, Reuters reported, and it has borrowed heavily to fund its AI bets, including a $10 billion dollar-denominated bond and an $11.87 billion term loan during the quarter. Its shares have nearly halved since early June.

"There are many cases where you have to change strategy for what you thought would probably have been OK a year or two ago," Chief Financial Officer Yoshimitsu Goto told reporters at the company's results briefing, according to Reuters.

To compare company results yourself, see our guide on how to read an earnings report. For another view of AI spending, read our coverage of CoreWeave's third-quarter results.

This article is for information only and is not investment advice.

Sources