SoftBank Group reported a net loss of 1.1 trillion yen, about $7 billion, for the July-September quarter, its fiscal second quarter, on Tuesday Nov 10 2026. The result was a sharp reversal from the same period a year earlier, when the company made a 2.5 trillion yen profit. It was also far worse than analysts had expected. Three analysts polled by LSEG had forecast results ranging from a profit of 233 billion yen to a loss of 113 billion yen. The loss sat well outside that range, and it put the spotlight on SoftBank and its large, debt-funded bet on OpenAI.
Quick Facts
| Item | Detail |
|---|---|
| Company | SoftBank Group |
| Quarter | July-September 2026, fiscal second quarter |
| Net loss | 1.1 trillion yen, about $7 billion |
| Same quarter last year | 2.5 trillion yen profit |
| Analyst forecasts | Profit of 233 billion yen to loss of 113 billion yen |
| Exchange rate cited | $1 = 157.97 yen |
| Total invested in OpenAI | About $64.6 billion |
| Stake in OpenAI | Roughly 13 percent |
| Stake in Arm Holdings | About 86 percent |
A sharp reversal from a year ago
The headline number tells a simple story. SoftBank went from a very large profit to a very large loss in twelve months. A year ago, the company recorded a 2.5 trillion yen profit in the same July-September quarter. That profit was driven by a huge investment gain on the rise in value of its stake in OpenAI. This time, there was no such gain to lift the result. Instead, the company reported a loss of 1.1 trillion yen, about $7 billion.
That swing shows how much SoftBank and its results depend on the value of a small number of large holdings. When those holdings rise in value, the company can report enormous profits. When they fall, or simply fail to rise, the results can turn sharply negative. The business is not a steady earner. It is, in large part, a reflection of how the market values the companies it has backed.
The size of the miss also matters. Analysts had already expected a weak result, with the most pessimistic forecast pointing to a loss of 113 billion yen. The actual loss was roughly ten times that figure. That gap is one reason the result drew so much attention.
Why the loss was far worse than expected
A year ago, the profit was built on a paper gain. The value of SoftBank and its stake in OpenAI rose sharply. This year, that tailwind was gone. The company did not get the same lift from its OpenAI holding, and the numbers fell back hard as a result.
This pattern is not new for SoftBank. Its quarterly results have swung wildly in both directions for years, because they track the market value of its investments. A single holding can move the whole result by trillions of yen. It takes large positions in a small number of companies it believes will grow fast.
What made this quarter different was the scale of the miss against forecasts. The most pessimistic forecast pointed to a loss of 113 billion yen, yet the actual loss came in at 1.1 trillion yen. That suggests the drag on the portfolio was much heavier than the market had priced in.
The OpenAI bet at the center of the story
At the heart of the story sits OpenAI. SoftBank has invested about $64.6 billion in the company in total, mostly with borrowed money, for a stake of roughly 13 percent. This means SoftBank and its fortunes are now closely tied to how OpenAI is valued and how soon it can deliver a return.
The news around OpenAI in the days before the results did not help. OpenAI closed an $11 billion funding round at a $1.25 trillion valuation on Nov 6, below its $30 billion target. The company also postponed its IPO to 2027, pushing any cash payback further away. For a lender-funded investor like SoftBank, a delayed listing matters, because it delays the moment when a paper stake can turn into real cash.
The timing is important here. The funding round and the IPO delay were reported before the earnings, in the days from Nov 6 to Nov 9, and they form the backdrop to the results rather than part of them. You can read more about the funding round in our report on OpenAI closing an $11 billion funding round at a $1.25 trillion valuation. Even so, they help explain why investors were already nervous before SoftBank reported. When the valuation comes in below target and the listing slips by a year, the pressure on the investor grows.
SoftBank also owns about 86 percent of Arm Holdings, the chip designer, another large piece of its portfolio. Arm and its shares have been caught up in the same AI-linked selloff. The company also faced a setback when China reportedly blocked its $5.4 billion takeover of the ABB robotics division. Our coverage of that blocked deal is here: China blocks SoftBank and ABB robotics deal worth $5.4 billion.
Market pressure built up before the results
The earnings did not arrive in a calm market. In the days before the announcement, SoftBank and its shares were already under heavy pressure. The stock had fallen about 45 percent over the past month and about 61 percent from its all-time high to around 3,550 yen. The slide was steep enough that the stock printed a death cross, a technical signal traders often read as a sign of sustained weakness.
The cost of insuring SoftBank debt also climbed. Five-year credit default swaps, which measure what it costs to protect against a borrower failing to pay, hit a four-year high at 466 basis points. That matters for a company that has borrowed heavily to fund its investments, because higher borrowing costs make the whole model more expensive to run.
All of this took place against a wider backdrop of an AI stock selloff in early November 2026. The Nasdaq 100 fell 6.4 percent in a day on Nov 5, and AI-linked names were under pressure across the market. The figures on the share price and the credit default swaps are pre-earnings context from Nov 6 to Nov 9, not post-earnings facts, but they show the mood the company was facing as it reported.
What investors will watch next
The first question after a result like this is simple. Was the loss a one-off swing in the value of the holdings, or does it point to a deeper problem with the strategy? SoftBank and its results have swung before, and the company has recovered from large losses in the past. But the size of this loss will make investors look closely at what comes next.
The second question is about OpenAI. The stake is now the single most important asset in the SoftBank portfolio, and its value depends on OpenAI continuing to grow and eventually reaching the public market. The postponed IPO to 2027 pushes the timeline out. Investors will watch for any update on the listing timetable.
The third question is about debt. SoftBank has funded much of its OpenAI investment with borrowed money, and the cost of insuring its debt has now hit a four-year high. If borrowing costs stay high, the company will face a harder choice between supporting its existing investments and making new ones.
Finally, investors will watch the wider AI market. The selloff in early November showed how quickly sentiment can turn, with the Nasdaq 100 down 6.4 percent in a single day. If AI stocks steady and recover, SoftBank and its portfolio should benefit. If the selloff continues, the pressure on the company will only grow.
FAQs
Why did SoftBank report such a large loss?
SoftBank reported a net loss of 1.1 trillion yen, about $7 billion, for the July-September quarter. A year earlier it made a 2.5 trillion yen profit, driven by a huge investment gain on its OpenAI stake. This time that gain was not there. The loss was also far worse than analysts expected, with forecasts ranging from a profit of 233 billion yen to a loss of 113 billion yen.
How much has SoftBank invested in OpenAI?
SoftBank has invested about $64.6 billion in OpenAI in total, mostly with borrowed money, for a stake of roughly 13 percent. OpenAI closed an $11 billion funding round at a $1.25 trillion valuation on Nov 6, below its $30 billion target, and postponed its IPO to 2027.
Why did SoftBank shares fall before the earnings?
In the days before the results, from Nov 6 to Nov 9, SoftBank shares fell about 45 percent over the past month and about 61 percent from their all-time high to around 3,550 yen, and the stock printed a death cross. The fall came during a wider AI stock selloff, with the Nasdaq 100 down 6.4 percent in a day on Nov 5.
What should investors watch next?
Investors will watch the value of the OpenAI stake, any update on the IPO timetable, the cost of SoftBank debt, and the wider AI market. For wider context on how the IPO market is behaving, see our report on Anthropic and its IPO roadshow pricing being retracted.
SOURCES
Final Thoughts
SoftBank and its $7 billion quarterly loss is a reminder of how the company really works. It is not a steady business with predictable earnings. It is a large, leveraged bet on a small number of fast-growing companies, and its results rise and fall with their valuations. When the market loves AI, the profits can be enormous. When sentiment turns, as it did in early November, the losses can be just as large.
The OpenAI investment sits at the center of the story. At about $64.6 billion, mostly borrowed, it is the biggest bet SoftBank has ever made, and its payoff now depends on a listing that has slipped to 2027. The funding round that closed below target and the IPO delay will shape how investors judge the company in the months ahead.
None of this means SoftBank is finished. The company has swung from large losses to large profits before, and its portfolio still holds valuable assets, including about 86 percent of Arm. But the scale of this loss, the gap against forecasts, and the pressure from rising borrowing costs all point the same way. The next few quarters will test whether the OpenAI bet can still pay off, or whether the debt-funded model that built it has reached its limit.
