SoftBank Group Corp. Just Beat EPS By 962%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that SoftBank Group Corp. (TSE:9984) released its interim result to the market. The early response was not positive, with shares down 9.1% to JP¥21,170 in the past week. It looks like a credible result overall - although revenues of JP¥3.7t were what the analysts expected, SoftBank Group surprised by delivering a (statutory) profit of JP¥1,750 per share, an impressive 962% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from SoftBank Group's twelve analysts is for revenues of JP¥7.67t in 2026. This reflects a satisfactory 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 71% to JP¥612 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥7.61t and earnings per share (EPS) of JP¥487 in 2026. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for SoftBank Group

The consensus price target rose 6.6% to JP¥22,477, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SoftBank Group analyst has a price target of JP¥28,062 per share, while the most pessimistic values it at JP¥10,400. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.4% growth on an annualised basis. That is in line with its 4.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.1% per year. So although SoftBank Group is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SoftBank Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SoftBank Group going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for SoftBank Group (3 are a bit concerning!) that you should be aware of.

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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.