SoftBank Shares Jump as Telecom Outlook Upgrade and Arm’s AI Momentum Lift Sentiment

Shares of SoftBank Group Corp rallied sharply after its listed telecom unit delivered stronger-than-expected performance and upgraded its financial guidance for the year. The move reassured investors at a time when markets have been closely scrutinizing SoftBank’s ability to balance near-term earnings with its heavy exposure to long-term technology bets.

For the first nine months of fiscal 2025, SoftBank Corp reported revenue of 5.2 trillion yen, up 8% year on year and a record for the period. Operating income also rose 8% to 884 billion yen, reflecting resilient demand across its core businesses. On the back of that momentum, the company lifted its full-year revenue forecast to 6.95 trillion yen and raised its operating income target to 1.02 trillion yen.

The telecom operator said it remains on track to meet its fiscal 2025 goals, even as it adjusts parts of its consumer strategy to prioritize profitability over subscriber growth. While consumer revenue grew a modest 3%, segment income increased 6%, despite a decline of about 100,000 smartphone subscribers in the third quarter following tighter customer-acquisition policies.

Beyond telecoms, SoftBank’s stock was further buoyed by strength in Arm Holdings, in which the group holds a significant stake. Arm’s recent rally has reinforced investor enthusiasm around SoftBank’s artificial intelligence exposure, particularly as AI-related demand expands beyond smartphones into data centers and cloud computing.

Arm executives have highlighted that data center royalty revenue more than doubled year on year, with expectations that the segment will eventually surpass mobile as the company’s largest business. CEO Rene Haas said Arm aims to supply about half of the CPUs used by the world’s largest cloud providers within the next few years, underscoring its growing role in AI infrastructure.

Although Arm narrowly missed some licensing revenue expectations, it still posted record quarterly revenue of $1.24 billion in the final quarter of 2025, driven largely by artificial intelligence demand. That performance helped reinforce the view that SoftBank’s long-term value is increasingly tied to AI-led growth, complementing the more stable cash flows generated by its telecom operations.

Together, the telecom outlook upgrade and Arm’s accelerating AI story have revived bullish sentiment toward SoftBank, easing concerns over volatility and strengthening the group’s positioning at the intersection of traditional earnings and next-generation technology investment.