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SoftBank Group reported a ¥1,115.3 billion ($7.0 billion) net loss for July through September 2026, after its subsidiary revised procurement plans for power equipment intended for U.S. AI data centers. The company recorded ¥597.2 billion ($3.73 billion) in related losses; equipment suppliers, canceled purchases and the projects affected have not been identified.
SoftBank Group reported a ¥1,115.3 billion ($7.0 billion) net loss for the July-to-September quarter on November 10, 2026, after revising plans for power generation equipment intended for U.S. AI data centers. A subsidiary recorded ¥597.2 billion ($3.73 billion) in losses tied to advance payments and contract changes, making power procurement a major factor in the quarter’s results.
The charge arose at Silver Bands 7 (SB7), a subsidiary backed by SoftBank Group and its second Vision Fund. SoftBank said SB7 had signed equipment purchase contracts and reserved manufacturing capacity for power generation equipment for U.S. data center projects, including the PORTS-Pike Technology Campus in Ohio. It described the advance commitments as bridge investments made to secure equipment amid anticipated shortages.
After SB7 revised its procurement strategy to reflect changing requirements for existing and planned projects, SoftBank recorded ¥457.0 billion ($2.9 billion) in losses on non-refundable advances for equipment removed from the revised plans. It also booked ¥140.2 billion ($0.9 billion) for contract modifications and settlements. SoftBank said cash payments for the latter amount were expected from the third quarter onward.
SB7 had paid a total of ¥1.5 trillion ($9.48 billion) by September 30 for equipment and reserved factory capacity. SoftBank said $6.6 billion in advances remained allocated to equipment for PORTS-Pike and other projects. It may receive up to $2.1 billion in rebates on future equipment purchases over 10 years, subject to conditions. The company did not recognize those potential rebates as an asset because their amount could not be determined.
SoftBank’s $7 Billion Loss The cost of power equipment
SoftBank reported a quarterly loss after its subsidiary changed power equipment procurement plans for U.S. AI data centers. The charges show how project changes can make early supply commitments costly.
What drove the charge
SB7 revised commitments as requirements for existing and planned projects evolved.
$2.9B written off
Non-refundable advances for equipment removed from the revised plans.
$0.9B in changes
Contract modifications and settlements, with cash payments expected from the third quarter onward.
Commitments and possible recovery
The remaining advances and potential rebates depend on future projects and purchases.
What is known and unclear
The filing gives the financial scale but leaves project details unresolved.
- PORTS-Pike in Ohio is among the projects.
- SB7 reserved equipment and factory capacity.
- Suppliers and canceled purchases.
- Impacts on other projects and financing details.
What investors will watch
Future disclosures may clarify how the revised plans affect projects and spending.
SoftBank expects cash payments for contract changes and settlements from the third quarter onward.
The company expects to recoup the investment through project financing but has not provided details.
Potential rebates depend on future equipment purchases and were not recognized as an asset.
Power Commitments Meet Project Changes
The reported losses show how AI data center development can expose investors to costs before facilities are complete or their power needs are settled. SoftBank’s account links the charge to advance payments and reserved factory capacity: commitments made to secure scarce equipment became costly when project requirements changed.
For companies seeking AI computing capacity, the episode highlights that delivery depends on more than access to chips or financing. Power generation equipment and factory availability are also part of the supply chain. The filing does not establish how common these losses are across the industry, but it shows that changes to one large developer’s plans can carry substantial costs.
The wider financial picture also matters. SoftBank’s quarterly finance costs rose to ¥461.9 billion, compared with ¥174.7 billion a year earlier. The power equipment charge was a major contributor to the loss, alongside higher financing costs and lower investment gains than in the prior-year quarter.
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From Equipment Shortages to Write-Offs
SoftBank’s fiscal year runs from April through March, so its second quarter covers July to September 2026. The group had reported a profit of ¥347.3 billion in its first fiscal quarter, from April to June. For the second quarter, net sales rose year over year to ¥2,215.4 billion from ¥1,916.5 billion, while the result below sales swung to a loss.
The charge appeared in “other gain (loss)” in SoftBank’s financial reporting. That line showed a loss of ¥669.9 billion for the quarter, compared with a gain of ¥111.9 billion in the same period a year earlier. Net income attributable to SoftBank’s owners was ¥2,502.2 billion in that prior-year quarter. The company’s report says its statements are an English translation of the Japanese original and were not reviewed by auditors.
SoftBank said SB7 made advance payments of $3.9 billion in fiscal 2025 and $5.6 billion in the first half of fiscal 2026. The company attributed the procurement shift to evolving requirements across existing and planned projects. It also said it expects to recoup the investment through project financing, though it did not provide details of that financing.
““made bridge investments in advance to secure power generation equipment in anticipation of shortages””
— SoftBank Group, investor presentation
Equipment and Canceled Orders Unnamed
SoftBank has not named the equipment suppliers, specified which purchases were canceled, or disclosed what equipment SB7 had reserved. The company also has not identified which planned projects beyond PORTS-Pike are affected. Its reported potential rebates of up to $2.1 billion depend on conditions and future purchases, and the amount remains undetermined.
It is also not clear how much of the remaining $6.6 billion in advances will be used on each project or when SoftBank expects to arrange project financing. The company’s quarter-level figures show the scale of the financial impact, but do not establish the eventual cost or schedule consequences for the data center projects.
Financing and Project Updates Ahead
SoftBank said cash payments related to contract modifications and settlements were expected from the third quarter onward. Investors will be watching for updates on those payments, the allocation of remaining advances and whether SB7 secures project financing as the company expects.
Further disclosures may clarify which equipment orders changed and how the revised plans affect PORTS-Pike and other U.S. projects. For now, the company has reported the charges and outlined possible future rebates, but has not provided supplier names or a project-by-project timeline.
Key Questions
How much did SoftBank lose in the quarter?
SoftBank reported a net loss attributable to owners of ¥1,115.3 billion, equivalent to about $7.0 billion at the company’s quarterly conversion rate.
How much of the loss was tied to power equipment?
SoftBank recorded ¥597.2 billion ($3.73 billion) in losses associated with SB7’s revised power equipment procurement plans: ¥457.0 billion in non-refundable advances and ¥140.2 billion for contract changes and settlements.
Why did the subsidiary change its plans?
SoftBank said requirements for existing and planned projects evolved. It has not described the specific changes or identified the equipment and purchases affected.
Could SoftBank recover some of the advance payments?
The company said it may receive up to $2.1 billion in rebates on future purchases over 10 years, subject to conditions. It did not book the rebates as an asset because the amount could not be determined.
Source: Thorsten Meyer AI
