SoftBank posts quarterly loss on $3.7B data center equipment prepayment write-down

On November 10, 2026, SoftBank Group reported its first net loss in almost two years, driven by a writedown of roughly $3.7 billion tied to a change in power-equipment procurement for a US AI data-center project. Per 36Kr, the loss was booked over the six months ending September 30, 2026, totaling ¥597.2 billion. That figure comprised ¥457 billion in non-refundable advance payments and ¥140.2 billion in contract-modification and settlement costs. The purchases were handled by Silver Bands 7 LLC, a subsidiary backed by SoftBank Group and the Vision Fund 2, covering power-supply equipment for AI data centers in locations such as Ohio.

Follow-up reporting filled in the terms of the writedown. According to The Information, SoftBank wrote off $3.7 billion in non-refundable advances for data-center equipment after reviewing its plans in Q2; the company had previously committed roughly $9.5 billion in advance payments to secure that equipment. Coverage from Eastmoney added that from fiscal 2025 through the end of Q2 of the current fiscal year, cumulative payments reached about $9.5 billion. After the revision, about $6.6 billion still supports equipment procurement for the PORTS-Pike power project in Ohio and other projects, while the remainder no longer falls under the revised plan. The affected campus is linked to the Ohio project in OpenAI's Stargate initiative.

For Q2 of fiscal 2026, SoftBank posted a net loss of ¥1.12 trillion, or roughly $7.1 billion, against an earlier market expectation of ¥129 billion in profit and ¥2.5 trillion in profit a year earlier. CFO Yoshimitsu Goto acknowledged at the earnings briefing that the company had rushed to lock in required equipment before long-term plans were settled, and said it is conducting a full reassessment of its overall procurement strategy. SoftBank shares fell more than 10% in early Tokyo trading on the news, while GE Vernova and Bloom Energy shares dropped as well; GE Vernova's closing decline narrowed to 3.89%. The matter currently stands at the stage where the writedown has been taken, the reasons for the adjustment have been disclosed, and the procurement strategy review is underway.