Key Highlights
- SoftBank’s Q4 net earnings reached $11.6 billion, representing more than a threefold increase year-over-year
- A $45 billion cumulative valuation boost from OpenAI holdings fueled the earnings surge
- SoftBank’s OpenAI stake reached a portfolio valuation of $79.6 billion by March’s conclusion
- Total OpenAI investment from SoftBank stands at $34.6 billion with commitments exceeding $60 billion
- Credit rating agency S&P downgraded SoftBank’s outlook to “negative” citing debt levels and concentrated portfolio exposure
SoftBank Group disclosed net earnings of 1.83 trillion yen, equivalent to $11.6 billion, for the January through March 2026 quarter. This figure represents more than triple the 517 billion yen the company earned during the comparable quarter of the previous year.
The financial performance significantly exceeded Wall Street expectations of 295.2 billion yen, based on data compiled by Bloomberg.
The dramatic increase stemmed primarily from a 3.043 trillion yen investment gain recorded during the three-month period. The bulk of these returns originated from the Vision Fund, SoftBank’s primary investment arm.
The standout performer was OpenAI, the artificial intelligence firm responsible for developing ChatGPT. By the end of March, SoftBank’s ownership position in OpenAI carried a valuation of $79.6 billion, translating to a cumulative $45 billion appreciation.
To date, SoftBank has deployed $34.6 billion into OpenAI. The investment firm has pledged to contribute over $60 billion in aggregate, securing approximately 13% equity in the AI company.
During February, OpenAI conducted a funding round that assigned the company an $890 billion valuation. A subsequent March financing round, with SoftBank serving as co-lead investor, valued OpenAI at $852 billion.
The Vision Fund alone generated approximately $20 billion in gains throughout the January-March period, with OpenAI accounting for nearly the entire amount.
Significant Setbacks Beyond OpenAI
SoftBank’s investment portfolio experienced mixed results. The conglomerate recorded write-downs on multiple positions, including holdings in Coupang, DiDi Global, and Klarna.
When excluding Vision Fund performance and accounting for currency fluctuations and operational expenses, SoftBank’s investment activity resulted in a 472.1 billion yen loss for the complete fiscal year.
Financing expenses during Q4 climbed to 229.4 billion yen, compared to 148.9 billion yen in the prior year’s quarter, illustrating the cost of borrowing to support AI-focused investments.
SoftBank currently carries $17.5 billion in remaining debt from a $40 billion bridge financing facility utilized to establish its OpenAI position.
Mounting Debt Triggers Credit Watch
To secure capital for its OpenAI investment, SoftBank has been divesting positions across its portfolio. The company liquidated shares in Nvidia and T-Mobile, generating 218.1 billion yen from these asset sales throughout the fiscal year.
In March, S&P Global Ratings changed its SoftBank outlook from “stable” to “negative.” The ratings agency cited concerns that SoftBank’s asset quality and financial strength would likely weaken due to its substantial OpenAI commitment.
S&P indicated that additional asset sales could help SoftBank mitigate these risks.
For the complete fiscal year, SoftBank recorded net earnings of 5 trillion yen. Both the Vision Fund and its telecommunications business served as primary profit engines.
Chief Executive Masayoshi Son has positioned artificial intelligence as the centerpiece of SoftBank’s long-term strategy. OpenAI continues to face competitive pressure from technology giants like Google and emerging players such as Anthropic.
