SoftBank Group posted an 18% year-on-year drop in first-quarter net profit, yet still comfortably beat market consensus. Robust returns from key tech holdings—most notably chipmaker Intel and TikTok parent ByteDance— cushioned performance against a flat quarter for OpenAI. Undeterred, Chief Executive Officer Masayoshi Son continues to aggressively reshuffle SoftBank’s balance sheet to fund an expansive artificial intelligence and supercomputing portfolio.
Q1 FY2026 Key Financial Highlights
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Net Profit: Reported at ¥347.3 billion (approx. $2.2 billion), down 18% YoY but over double average analyst projections.
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Investment Gains: Recorded ¥1.86 trillion in total investment gains for the quarter.
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Intel & ByteDance Surge: Intel’s ongoing restructuring under CEO Lip-Bu Tan generated ¥1.33 trillion ($8.2 billion) in gains for SoftBank, while ByteDance added a $2.2 billion valuation mark-up.
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OpenAI Holding: Unchanged in fair value during the April–June quarter. Total cumulative gains from OpenAI remain around $45 billion.
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Net Asset Value (NAV): Hit a record ¥72.3 trillion in June before easing to ¥58.3 trillion as of August 5 due to broad tech market adjustments.
Key Portfolio & Investment Developments
1. OpenAI at the Core
By October 2026, SoftBank’s total stake in OpenAI is projected to reach $64.6 billion (~13% equity interest) following planned follow-on tranches. The group is positioning itself ahead of OpenAI’s expected initial public offering (IPO).
2. Funding & Capital Reallocation
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OpenAI-Backed Loan: Secured a $10 billion margin loan from a syndicate of major global institutions using its preferred shares in OpenAI as collateral.
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Bridge Facility: Obtained a $40 billion bridge loan facility through March 2027 to cover near-term commitments.
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Asset Sales: Monetized legacy stakes in Nvidia and T-Mobile to reallocate liquidity toward foundational AI bets.
3. Second-Half Capital Commitments
SoftBank has lined up over $28.5 billion in committed investments for H2 2026, including:
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$20 Billion in follow-on funding for OpenAI.
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$5.4 Billion to acquire ABB’s industrial robotics division.
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$3.1 Billion to purchase digital infrastructure manager DigitalBridge.
