Can SoftBank Group (TSE:9984) Reshape Its Growth Strategy With a Share Split and India AI Push?

• SoftBank Group recently announced that its Board of Directors approved a share split and amendments to its Articles of Incorporation, to take effect on January 1, 2026.
• This move comes as SoftBank considers minority investment opportunities in India’s AI-focused cloud infrastructure sector, signaling renewed interest in growth markets after a multi-year pause.
• We'll now explore how SoftBank's board-approved share split may shape its investment narrative and future capital market perceptions.

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SoftBank Group Investment Narrative Recap

SoftBank shareholders need to believe in the company's long-term ability to capitalize on the global adoption of AI and monetize its expansive tech portfolio, including assets like Arm, through successful IPOs and strategic exits. The recent talks about investing in Neysa Networks reinforce SoftBank's AI and cloud ambitions but do not materially change the most immediate catalyst, progress on IPOs, and do not diminish ongoing balance sheet risk from high leverage, which remains a critical concern.

Among recent announcements, the Board-approved share split effective January 2026 stands out. While this structural change could broaden retail investor access and potentially improve liquidity, it is more about capital markets positioning than any direct impact on near-term business drivers such as AI asset monetization or addressing leverage concerns.

However, investors should be aware that despite these growth moves, balance sheet risks from SoftBank’s high leverage…

Read the full narrative on SoftBank Group (it's free!)

SoftBank Group's narrative projects ¥8,650.2 billion in revenue and ¥620.6 billion in earnings by 2028. This requires 5.5% yearly revenue growth and a decrease in earnings of ¥1,110.8 billion from the current ¥1,731.4 billion.

Uncover how SoftBank Group's forecasts yield a ¥22477 fair value, a 32% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community includes three distinct fair value estimates for SoftBank ranging from ¥5,771 to ¥22,477, reflecting substantial differences in expectations. While you review these opinions, keep in mind that stricter global regulations could affect SoftBank’s ability to achieve profitable exits across its portfolio.

Explore 3 other fair value estimates on SoftBank Group - why the stock might be worth as much as 32% more than the current price!

Build Your Own SoftBank Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SoftBank Group research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
• Our free SoftBank Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SoftBank Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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