SoftBank Group Corp. shares tumbled approximately 7% in Asian trading on Thursday, extending a broad-based sell-off across regional technology equities.
The sharp decline followed the company’s disclosure of an 18% year-on-year drop in first-quarter net income, driven by rising operational costs that eroded investment gains.
3 billion yen ($2.20 billion) for the fiscal period ending June 30.
Despite the profit contraction, SoftBank reported net income of 347.3 billion yen ($2.20 billion) for the fiscal period ending June 30.
The figure exceeded market expectations, yet investors remained focused on the underlying cost pressures and the capital intensity of the group’s aggressive artificial intelligence investments.
The sell-off marks a continuation of the pressure that has weighed on the Japanese conglomerate’s stock in recent sessions.
The results highlight the ongoing tension between SoftBank’s high-growth AI strategy and its balance sheet leverage.