The Japanese conglomerate reported higher-than-expected earnings due to strong returns from its Intel stake and rising ByteDance valuation.
SoftBank Group posted a fiscal first-quarter profit that exceeded analyst estimates, driven by a significant gain from its investment in Intel and an increase in the valuation of ByteDance, owner of TikTok. The results reflect a rebound in its Vision Fund division, which benefited from the tech sector’s recovery.
Market expectations had been lower, with consensus estimates forecasting a smaller profit. The prior quarter had seen weaker performance due to volatility in global tech stocks. ByteDance’s valuation rise also contributed to the positive outcome, offsetting previous losses in other portfolio companies.
Shares of SoftBank reacted modestly in early trading, as investors digested the earnings beat and its implications for future investment returns.