Shares of SoftBank Group Corp surged more than 10 percent on Monday after its telecom subsidiary raised its full-year profit outlook, while strength in chip designer Arm Holdings added to positive sentiment around the group’s artificial intelligence exposure.
SoftBank’s shares rose as investors reacted to improved earnings guidance from SoftBank Corp, the group’s telecom unit.
SoftBank Corp reported that revenue for the first nine months of fiscal 2025 increased 8 percent year on year to 5.2 trillion yen, marking a record for the period. Operating income also rose 8 percent to 884 billion yen.
Following the results, the company raised its full-year revenue forecast to 6.95 trillion yen, up from 6.7 trillion yen, and increased its operating income target to 1.02 trillion yen.
The telecom unit said the results reflect steady progress toward its fiscal 2025 targets, even as it adjusts parts of its consumer business to focus on long-term profitability rather than subscriber growth.
Revenue in the consumer segment grew 3 percent, while segment income rose 6 percent. Smartphone subscribers declined by 100,000 in the third quarter after the company tightened customer acquisition policies.
Arm Strength Supports Group Outlook
SoftBank Group also benefited from a strong rally in Arm Holdings, in which it holds a major stake. Arm’s recent performance has strengthened investor confidence in SoftBank’s exposure to artificial intelligence-related growth.
Arm said demand linked to data centres and artificial intelligence continues to drive growth beyond its traditional smartphone business.
The chip designer reported record quarterly revenue of $1.242 billion for the final three months of 2025, supported by strong demand for AI-related products. While licensing revenue missed some market expectations, overall revenue exceeded analyst forecasts tracked by LSEG.
Arm has said it expects data centre-related business to become its largest revenue contributor in the coming years and aims to supply a significant share of processors used by major cloud computing companies.
