TLDR
- SoftBank’s fourth quarter net income reached $11.6 billion, representing a threefold increase compared to the previous year
- A $45 billion cumulative valuation increase from its OpenAI holdings fueled the impressive results
- The company’s OpenAI stake was valued at $79.6 billion at the end of March
- Total OpenAI investment stands at $34.6 billion with commitments exceeding $60 billion
- S&P Global changed SoftBank’s credit outlook to “negative” citing debt levels and concentrated portfolio exposure
SoftBank Group delivered quarterly net income of 1.83 trillion yen ($11.6 billion) for the quarter concluded March 31, 2026. This represents more than a threefold increase from the 517 billion yen earned during the corresponding period in 2025.
The financial performance significantly exceeded Wall Street expectations, which had projected earnings of 295.2 billion yen based on Bloomberg consensus data.
The dramatic improvement stems primarily from investment gains totaling 3.043 trillion yen recorded during the quarter. The majority of these returns originated from the Vision Fund, SoftBank’s primary investment arm.
The standout performer was OpenAI, the artificial intelligence company responsible for developing ChatGPT. As of March 31, SoftBank’s OpenAI position carried a valuation of $79.6 billion, reflecting a cumulative appreciation of $45 billion.
SoftBank’s total capital deployed into OpenAI currently amounts to $34.6 billion. The firm has pledged to invest over $60 billion ultimately, which would secure approximately 13% equity ownership in the AI developer.
OpenAI completed a funding round in February at an $890 billion valuation. The following month saw another financing round co-led by SoftBank that valued the company at $852 billion.
During the three months ending March, the Vision Fund alone recorded gains approaching $20 billion, with OpenAI accounting for nearly all of this performance.
Significant Losses Beyond OpenAI Holdings
SoftBank’s investment portfolio showed mixed results beyond its AI flagship. The conglomerate recorded declining values across multiple positions, including Coupang, DiDi Global, and Klarna.
When excluding Vision Fund performance and adjusting for currency fluctuations and operational expenses, SoftBank registered an investment income deficit of 472.1 billion yen for the complete fiscal year.
Financing expenses during the fourth quarter climbed to 229.4 billion yen, compared with 148.9 billion yen in the year-ago period, reflecting increased borrowing to support artificial intelligence investments.
The company maintains $17.5 billion in outstanding obligations from a $40 billion bridge financing facility utilized to fund its OpenAI stake.
Mounting Debt Triggers Credit Concerns
To finance its OpenAI commitment, SoftBank has been divesting positions across its portfolio. The company liquidated shares in Nvidia and T-Mobile, generating proceeds of 218.1 billion yen during the fiscal year.
S&P Global Ratings downgraded its outlook on SoftBank from “stable” to “negative” in March. The ratings agency expressed concerns that SoftBank’s asset quality and financial flexibility would likely weaken due to its substantial OpenAI exposure.
S&P indicated that additional asset sales could help mitigate these concerns.
For the complete fiscal year, SoftBank reported net profit of 5 trillion yen. Both the Vision Fund and its telecommunications operations were primary contributors to this performance.
CEO Masayoshi Son has positioned artificial intelligence as central to SoftBank’s strategic direction. OpenAI continues to face intense competition from technology giants including Google and emerging players like Anthropic.
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