Key Highlights
- SoftBank’s fourth-quarter net income reached $11.6 billion, representing more than a 300% year-over-year increase
- A massive $45 billion valuation surge in the company’s OpenAI holdings powered the profit jump
- The Japanese conglomerate’s OpenAI stake was valued at $79.6 billion at the conclusion of March
- Total capital deployed into OpenAI stands at $34.6 billion, with commitments exceeding $60 billion
- Credit rating agency S&P downgraded SoftBank’s outlook to “negative” citing leverage and concentration risks
SoftBank Group disclosed net earnings of 1.83 trillion yen—equivalent to $11.6 billion—for the fiscal quarter concluded March 31, 2026. This figure represents a dramatic increase, exceeding the 517 billion yen earned during the corresponding quarter of the previous year by more than threefold.
The financial performance significantly outpaced market expectations, with analysts having forecast earnings of 295.2 billion yen based on Bloomberg consensus estimates.
The substantial earnings growth stemmed primarily from a 3.043 trillion yen investment gain recorded during the quarter. The lion’s share originated from SoftBank’s Vision Fund, the company’s primary investment arm.
The standout performer was OpenAI, the artificial intelligence firm responsible for creating ChatGPT. By the end of March, SoftBank’s OpenAI position carried a valuation of $79.6 billion, marking a cumulative appreciation of $45 billion.
SoftBank’s capital commitment to OpenAI has reached $34.6 billion to date. The firm has pledged to deploy over $60 billion in aggregate, which would translate to approximately 13% equity ownership in the AI company.
During February, OpenAI secured funding at an $890 billion enterprise valuation. The following month saw another financing round co-led by SoftBank at an $852 billion valuation.
The Vision Fund alone generated approximately $20 billion in gains throughout the January-March period, with OpenAI accounting for virtually all of that performance.
Significant Setbacks in Other Portfolio Companies
SoftBank’s investment performance was far from uniformly positive. The firm experienced write-downs across multiple portfolio companies, including e-commerce platform Coupang, ride-hailing service DiDi Global, and fintech firm Klarna.
When excluding Vision Fund results and accounting for currency fluctuations and operational expenses, SoftBank recorded an investment income deficit of 472.1 billion yen across the full fiscal year.
Financing expenses during the fourth quarter climbed to 229.4 billion yen, compared with 148.9 billion yen in the prior-year period, reflecting increased borrowing undertaken to finance artificial intelligence investments.
SoftBank maintains $17.5 billion in outstanding obligations on a $40 billion bridge financing facility utilized to establish its OpenAI position.
Credit Quality Under Scrutiny
To finance its aggressive OpenAI investment strategy, SoftBank has been liquidating positions in other assets. The company divested portions of its holdings in Nvidia and telecommunications provider T-Mobile, generating 218.1 billion yen in proceeds throughout the fiscal year.
S&P Global Ratings downgraded its outlook on SoftBank from “stable” to “negative” during March. The rating agency expressed concern that SoftBank’s asset quality and financial flexibility were poised to weaken due to the outsized OpenAI commitment.
S&P indicated that SoftBank could mitigate these risks through additional asset monetization.
Across the complete fiscal year, SoftBank reported net income of 5 trillion yen. Both the Vision Fund and the company’s telecommunications operations served as primary earnings drivers.
Chief Executive Masayoshi Son has positioned artificial intelligence as the centerpiece of SoftBank’s corporate strategy. OpenAI confronts intensifying competition from rivals such as Google and Anthropic.
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