Why is SoftBank Group stock tumbling today?

SoftBank Group Corp. fell 4.2% to ¥3,710 on Wednesday after the company disclosed a ¥1.12 trillion ($7.1 billion) net loss for its fiscal second quarter ending September 30, 2026 — a stunning reversal from the ¥2.5 trillion profit it posted in the same quarter a year earlier and far wider than the consensus estimate that had called for a profit of roughly ¥129 billion.

The primary culprit was a $3.7 billion charge tied to nonrefundable advance payments the company had made to secure power-generation equipment for its U.S. AI data center projects, including an 8-gigawatt facility in Ohio, after procurement plans were subsequently revised. Financing costs also more than doubled during the quarter, adding further pressure to the bottom line.

Beyond the data center write-down, SoftBank’s net asset value fell 17% during the quarter, weighed down heavily by a 23% drop in Arm Holdings’ share price — a particularly painful blow given that Arm represents roughly 54% of SoftBank’s total asset value. The Vision Fund segment swung to a loss of ¥81.6 billion from a profit of ¥2.38 trillion a year earlier, as declines in the share prices of Intel and Coupang further eroded returns.

The broader Japanese market offered little sympathy: the Nikkei 225 edged up approximately 0.1% on the day, meaning SoftBank’s sharp decline was entirely company-driven rather than a reflection of macro headwinds. The drop was made more pronounced by the fact that SoftBank shares had surged nearly 14% the prior session as part of a broad AI and tech rebound across Asia, only to give back those gains and more once the earnings results landed.