SoftBank Shares Surge on Dual Tailwinds from Politics and Performance

SoftBank Group Corp. enjoyed a powerful boost from two distinct directions in Monday's trading session. A broad market rally in Tokyo, fueled by political developments, combined with an upward revision to the annual forecast from its telecommunications subsidiary, SoftBank Corp., to propel the holding company's stock to significant gains.

The company-specific catalyst emerged from its core telecommunications business. SoftBank Corp. (9434) released its financial results for the third quarter of the fiscal year ending March 31, 2025, reporting record figures for the first nine months. This strong operational performance led management to raise its full-year outlook.

Key figures from the report include:
- Revenue: Increased by 8% to 5.195 trillion JPY
- Net Profit: Rose 11% to 485.5 billion JPY
- Financial Segment: The operating result from its PayPay fintech platform doubled to 66 billion JPY

Based on this robust performance, SoftBank Corp. now anticipates a full-year net profit of 543 billion JPY, which would set a new record. Given the parent company's substantial stake in the subsidiary, this improved guidance directly enhances the value of SoftBank Group's investment.

Political Clarity Fuels Broad Market Rally

The macroeconomic impetus came from Japan's political arena. The decisive victory of the Liberal Democratic Party (LDP), led by Prime Minister Sanae Takaichi, and its coalition partner, which secured a two-thirds majority, provided market confidence. Investors interpreted the result as ensuring continuity in loose fiscal policy and opening the door for potential tax cuts.

Should investors sell immediately? Or is it worth buying SoftBank?

Further positive sentiment was generated by Prime Minister Takaichi's statement that planned consumption tax reductions should be financed through non-tax revenue streams rather than deficit-covering bonds. In currency markets, the yen strengthened slightly following the news, trading around 156 against the US dollar.

Converging Forces Drive Share Advance

The combination of these factors resulted in a notable surge for SoftBank Group shares. The stock advanced approximately 7% intraday, ranking it among the top performers on Japan's benchmark index. The Nikkei 225 itself leaped to a fresh all-time high above 56,000 points, gaining over 4% on the day.

AI Strategy Remains a Central Theme

The quarterly report also underscored SoftBank Corp.'s growing emphasis on artificial intelligence. CEO Junichi Miyakawa highlighted developments in "Brain Data Centers" and AI applications as part of the company's "Beyond Carrier" strategic initiative.

This focus aligns with the parent company's continued aggressive capital allocation toward AI. The report referenced SoftBank Group's late-2025 completion of a $23 billion investment in OpenAI, a move that increased its stake in the AI leader to 11%.

In summary, the start of the trading week saw SoftBank benefit from a potent mix: a supportive political backdrop driving the wider Japanese market higher and a fundamental upgrade from a key subsidiary bolstering its own financial prospects.