SoftBank Shares Jump 10% After Telecom Unit Raises Outlook and Arm's AI Boost

• SoftBank Corp raised its full-year revenue forecast to 6.95 trillion yen from 6.7 trillion yen and increased its operating income target to 1.02 trillion yen
• Arm Holdings rally provided additional boost due to SoftBank's large stake, with Arm's data-center royalty revenue growth and AI-driven demand exceeding analyst estimates at $1.242 billion
• Arm is targeting to supply half of the CPUs used by major cloud computing hyperscalers by year-end, reflecting strong AI-linked growth beyond smartphones

Summary

SoftBank Group shares surged over 10% following positive developments from its telecom subsidiary and renewed optimism around its AI investments through Arm Holdings.

Key Financial Performance

SoftBank Corp (Telecom Unit):

• Revenue for first nine months of fiscal 2025 rose 8% year-over-year to 5.2 trillion yen (a record)
• Operating income climbed 8% to 884 billion yen
• Full-year revenue forecast raised to 6.95 trillion yen from 6.7 trillion yen previously
• Operating income target increased to 1.02 trillion yen
• Consumer business revenue grew 3%, with segment income up 6%

Arm Holdings Impact:

• Sharp rally in Arm stock boosted SoftBank given its substantial stake in the British chip designer
• Arm reported Q4 2025 revenue of $1.242 billion, beating analyst estimates
• Data-center royalty revenue growth driven by AI-linked expansion beyond smartphones
• Company targets supplying 50% of CPUs to major cloud hyperscalers by year-end
• Missed licensing revenue estimates but demonstrated strong AI-driven demand

Market Implications

The rally reflects strong investor confidence in SoftBank's AI exposure through Arm Holdings. SoftBank Corp's telecom business shows steady execution toward fiscal 2025 goals while strategically prioritizing long-term profitability. Arm's pivot toward data centers and AI applications positions both companies favorably in the growing artificial intelligence infrastructure market.

According to Andrew Jackson of Ortus Advisors, the combination of improved telecom performance and Arm's AI momentum created the positive sentiment driving SoftBank Group's significant share price gain.