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SoftBank Group reported a ¥1,115.3 billion ($7.0 billion) net loss for July to September 2026. A ¥597.2 billion ($3.73 billion) loss tied to revised power equipment procurement plans was a major contributor, alongside higher finance costs and smaller investment gains than a year earlier.
SoftBank Group reported a ¥1,115.3 billion ($7.0 billion) net loss for the July-to-September quarter on November 10, after a major charge tied to revised power equipment procurement plans for U.S. AI data centers. The company said the procurement changes produced a ¥597.2 billion ($3.73 billion) loss, a substantial factor in its first quarterly loss after a ¥2,502.2 billion profit in the same period a year earlier.
The charge arose at Silver Bands 7 (SB7), a subsidiary in which SoftBank and its second Vision Fund have invested. SoftBank said SB7 had paid in advance for power generation equipment and reserved factory capacity as it sought to secure supplies amid anticipated shortages. By September 30, total payments had reached ¥1.5 trillion, or about $9.48 billion.
After reviewing project needs, SB7 revised its procurement strategy. SoftBank recorded ¥457.0 billion ($2.9 billion) in losses on non-refundable advance payments for equipment no longer included in the plans, and ¥140.2 billion ($0.9 billion) for contract modifications and settlements. SoftBank said cash payments related to the latter item were expected from the third quarter onward.
SoftBank said ¥6.6 billion in advance payments remained allocated to equipment for the PORTS-Pike Technology Campus in Ohio and other projects. It may receive rebates of up to $2.1 billion over 10 years on future purchases, subject to conditions. The company did not recognize those potential rebates as an asset because their amount could not be determined.
SoftBank’s Quarterly Loss and the Power Bill
SoftBank reported a $7.0 billion quarterly net loss. Revised power equipment plans for U.S. AI data centers drove a major charge, alongside higher finance costs and smaller investment gains.
Power Costs Shape AI Expansion
The charge shows how AI data center plans depend on power equipment as well as computing hardware. SoftBank said it paid ahead to secure generation equipment and manufacturing capacity in anticipation of shortages, then took losses when project requirements changed. The financial impact reaches beyond the cost of equipment: deposits may be non-refundable, contract changes can add costs, and factory capacity reserved for one plan may not fit another.
For customers seeking AI computing capacity, the episode points to a constraint that can affect when and where data centers are built: reliable power supply and the equipment needed to generate it. It does not establish how much capacity will be delayed or whether customers will face higher prices. Those effects remain unknown.
The quarter also reflects costs beyond the procurement charge. SoftBank’s finance costs rose to ¥461.9 billion, from ¥174.7 billion in the year-earlier quarter. Sales increased, but the company reported a loss before tax of ¥1,027.9 billion, compared with a ¥2,996.4 billion profit a year earlier. Its other gain-and-loss line also shifted from a gain to a large loss.
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How the Equipment Plans Changed
SoftBank’s fiscal year runs from April through March, making July to September the second quarter of fiscal 2026. The company said SB7 entered into equipment purchase contracts, manufacturing capacity reservation agreements and other arrangements for U.S. AI data center projects, including PORTS-Pike in Ohio. Its presentation described the advance payments as bridge investments intended to secure equipment amid expected shortages.
SoftBank reported paying $3.9 billion in fiscal 2025 and a further $5.6 billion in the first half of fiscal 2026. It said SB7 then revised its equipment strategy “given the evolving requirements of its existing and planned projects.” Of the quarterly loss, the company attributed ¥597.2 billion to the procurement changes, combining the write-off of non-refundable advances and costs from contract modifications and settlements.
The quarterly result marked a sharp change from the ¥347.3 billion profit SoftBank reported for April to June 2026. It also compares with a ¥2,502.2 billion profit in July to September 2025. SoftBank’s published financial report describes its English version as a translation of the Japanese original and says the statements had not been reviewed by auditors.
““made bridge investments in advance to secure power generation equipment in anticipation of shortages””
— SoftBank Group, investor presentation
Cancelled Orders and Recoveries
SoftBank has not disclosed which equipment was purchased, which suppliers were involved, or which specific orders were cancelled. The company also has not detailed the conditions attached to the potential rebates of up to $2.1 billion. Because those rebates depend on future purchases and other conditions, the amount SoftBank may ultimately recover is uncertain.
The company said it expects to recoup its investment through project financing, but it has not provided a timetable or confirmed how much financing it expects to secure. The financial report also gives no breakdown of how much of the quarterly loss came from each factor beyond the disclosed procurement charges, finance costs and other gain-and-loss figures.
Project Financing and Equipment Orders
SoftBank said payments for contract modifications and settlements were expected to begin from the third quarter of fiscal 2026. Investors will be watching for updates on project financing, equipment allocations and the PORTS-Pike development, along with any purchases that qualify for rebates. The company has said those rebates could be received over the next 10 years, subject to conditions.
Future results will also show whether revised procurement plans reduce further losses or create additional costs. SoftBank has not announced a schedule for resolving the remaining equipment commitments or provided a detailed account of how the changes affect construction timelines.
Key Questions
How large was SoftBank’s quarterly loss?
SoftBank reported a net loss attributable to owners of ¥1,115.3 billion, about $7.0 billion, for July to September 2026.
What caused the power equipment charge?
SoftBank said its subsidiary SB7 revised its procurement strategy as project requirements evolved. The resulting ¥597.2 billion loss included non-refundable advances on equipment removed from the plans and costs from contract changes and settlements.
How much had the subsidiary paid in advance?
By September 30, 2026, SB7 had paid ¥1.5 trillion, or about $9.48 billion, for power generation equipment and reserved factory capacity.
Could SoftBank recover any of the money?
SoftBank said rebates of up to $2.1 billion may be available over 10 years on future equipment purchases, subject to conditions. It also said it expects to recoup investment through project financing, but has not provided a recovery timetable or amount.
Does the charge mean AI data center construction will be delayed?
SoftBank has not disclosed whether the revised procurement plans will delay construction or affect customer capacity. Its report identifies the procurement changes and remaining equipment allocations but does not give a schedule for project impacts.
Source: Thorsten Meyer AI
