Citi on Tuesday raised its price objective for SoftBank to JPY255 from JPY240 and maintained a Buy recommendation, saying the company’s recent results and strategic plan support ongoing profit and dividend expansion.
The bank’s adjustment follows disclosure of SoftBank’s results for the fiscal year ending March 2026 (FY3/26) and the company’s guidance for FY3/27. SoftBank reported FY3/26 revenue of JPY7.0 trillion, an 8% increase from the prior year. Operating profit for the year came in at JPY1.0 trillion, up 5% year-over-year, while net profit rose 5% to JPY0.55 trillion. Citi noted that "both revenue and profit" were up for the year.
For FY3/27, SoftBank guided to sales of JPY7.5 trillion, representing a 6.6% increase year-over-year. The company forecast operating profit of JPY1.1 trillion, a 5.5% rise, and net profit of JPY560 billion, up 1.7%, with management "expecting revenue and profit growth."
Citi flagged a near-term headwind, anticipating that profit growth may stall in the first half of FY3/27 because of one-off items and a difficult year-over-year comparison. The bank expects growth to resume in the second half of the fiscal year.
Looking beyond the coming year, Citi referred to SoftBank’s medium-term plan, which sets a target of JPY1.7 trillion in operating profit for FY3/31. That objective implies a compound annual growth rate of about 10% from the company’s current base. The medium-term plan also targets net profit of JPY700 billion by FY3/31.
SoftBank has guided to dividends per share of JPY8.8 in FY3/27, up from a prior level of JPY8.6, and signaled an intention to continue raising dividends as net profit increases.
The bank also highlighted SoftBank’s expanding AI business within its assessment, noting new data centers scheduled to begin operations in Hokkaido and Osaka Sakai in FY3/27 as part of that expansion.
In updating its valuation approach, Citi now uses a blend of a dividend discount model and a price-to-earnings multiple to value the stock, reflecting the combination of shareholder returns and expected profit growth in its outlook.
Overall, Citi’s move increases the firm’s expressed upside for the stock while maintaining a constructive stance based on the company’s reported progress, forward guidance and medium-term targets.