SoftBank’s chief financial officer Osamu Akiyama told a conference call with investors that the company’s AI-related businesses became an increasingly important contributor to its enterprise business segment
In sum – what to know:
Cloud AI growth – SoftBank said its AI business has entered the monetization phase, prompting it to move cloud and AI operations into its Enterprise segment.
Forecast raised – The company doubled its expected cloud and AI revenue CAGR for FY2026-FY2027 to 30%, driven by AI computing infrastructure and related services.
Investment discipline – Management said AI infrastructure spending remains on track while continuing strategic investments, including the launch of its neocloud business.
Japanese carrier SoftBank said its AI business has entered the monetization phase, prompting the company to reorganize its reporting structure, raise its cloud and AI growth outlook and continue expanding investment in AI infrastructure as demand accelerates.
Presenting first-quarter results, SoftBank’s chief financial officer Osamu Akiyama said the company delivered revenue and profit growth while AI-related businesses became an increasingly important contributor to Enterprise performance.
During the call, Akiyama said that the company’s AI businesses started the monetization phase. Reflecting that shift, SoftBank has moved its AI business from its previous reporting category into the Enterprise segment beginning this fiscal year.
According to SofBank’s management, revenue from AI computing infrastructure and related businesses was the main driver behind growth in the cloud and AI business, helping lift Enterprise operating income by 28% year over year.
One of the strongest indicators of that momentum was SoftBank’s decision to significantly raise its medium-term cloud and AI growth expectations.
“Cloud and AI revenue is expected to grow at CAGR of 30% in FY 2026 to FY 2027,” Akiyama said. “At the time of announcing our midterm business management plan, CAGR of 15% was announced. However, right now we can see that we can exceed that target, now we expect to grow at CAGR of 30%.”
While AI has become a larger contributor to Enterprise revenue, management noted that the business is also increasing investment. Costs rose alongside revenue growth, while depreciation increased primarily because AI infrastructure assets are now reported within the Enterprise segment.
SoftBank also reiterated its commitment to continue expanding AI infrastructure while maintaining financial discipline. “We actively executed a strategic growth investment under the financial disciplines. We would like to continue our strategic growth investments,” Akiyama said.
The company said AI-related capital expenditure remained relatively small during the first quarter but is progressing according to plan for the full fiscal year.
“For AI-related capex, in the first quarter, our numbers were small. For the full year, we want to execute as planned. We are on track in terms of AI-related capital expenditures,” Akiyama said.
SoftBank also highlighted its move into the emerging neocloud market. Management said the company invested $1 billion in SB Energy during the quarter to launch its neocloud business and established SB Neo as part of the new framework. The company also announced plans to sell that investment for $1.5 billion, with the resulting gain expected to be recognized during the next quarter.
The AI expansion forms part of SoftBank’s broader growth strategy, with management emphasizing that it will continue pursuing investment opportunities while maintaining its financial position. “Whenever we see an opportunity, we want to be open to investment,” Akiyama said.
In May, SoftBank had announced its “AI Data Center GPU Cloud,” a sovereign AI infrastructure service that pushes the operator further away from its telecom roots and into direct competition with global cloud giants. The service was unveiled as a key pillar of the company’s broader “Activate AI for Society” strategy.
A beta version went live immediately on the day of the announcement, though commercial availability isn’t scheduled until October 2026. Even then, the initial rollout will be restricted to internal use across SoftBank group companies before the service opens up to wider commercial customers.
