Key TakeawaysSoftBank’s fourth-quarter net income reached $11.6 billion, representing a three-fold increase year-over-yearA $45 billion valuation increase in its OpenAI holdings fueled the profit surgeThe company’s OpenAI stake was valued at $79.6 billion at the end of MarchTotal OpenAI investment stands at $34.6 billion, with commitments exceeding $60 billionS&P Global Ratings downgraded SoftBank’s outlook to “negative” citing debt levels and portfolio concentration risksSoftBank Group announced net income of 1.83 trillion yen (approximately $11.6 billion) for the quarter that concluded on March 31, 2026. This figure represents a substantial increase compared to the 517 billion yen profit recorded during the corresponding quarter of the previous year.SOFTBANK IS MARKING UP OPENAI WHILE BORROWING MORE TO BUY OPENAISoftBank reported ¥1.83T, or about $11.6B, in fiscal Q4 net income. Analysts expected just ¥295.2B.Bloomberg Intelligence said the quarter’s profit was entirely attributable to $25B in valuation gains on OpenAI.… pic.twitter.com/AoaiZuZgps— Wall St Engine (@wallstengine) May 13, 2026The performance significantly exceeded Wall Street expectations, with analysts having projected earnings of 295.2 billion yen, based on Bloomberg’s consensus estimates.The dramatic earnings increase was primarily attributed to a 3.043 trillion yen investment gain recorded during the quarter. The majority of these gains originated from the Vision Fund, SoftBank’s primary investment arm.The standout performer in the portfolio was OpenAI, the artificial intelligence company responsible for developing ChatGPT. As of March 31, SoftBank’s ownership position in OpenAI reached a valuation of $79.6 billion, marking a cumulative gain of $45 billion on the investment.To date, SoftBank has deployed $34.6 billion into OpenAI. The Japanese conglomerate has pledged to invest over $60 billion in aggregate, which would secure approximately 13% equity ownership in the AI pioneer.During February, OpenAI completed a funding round that assigned the company an $890 billion valuation. A subsequent financing round in March, which SoftBank co-led, valued the startup at $852 billion.The Vision Fund alone recorded gains of approximately $20 billion during the three-month period from January through March, with OpenAI accounting for nearly the entire amount.Significant Losses Beyond OpenAI HoldingsHowever, SoftBank’s investment portfolio showed mixed results elsewhere. The company experienced losses across multiple other holdings, including positions in Coupang, DiDi Global, and Klarna.When excluding Vision Fund performance and accounting for currency fluctuations and operational expenses, SoftBank recorded 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 prior-year period, demonstrating the increased borrowing costs associated with financing its artificial intelligence investments.The company maintains $17.5 billion in outstanding obligations from a $40 billion bridge financing facility utilized to fund its OpenAI investment.Credit Rating Concerns IntensifyTo finance its aggressive OpenAI investment strategy, SoftBank has been divesting stakes in portfolio companies. The firm liquidated positions in Nvidia and T-Mobile, generating proceeds of 218.1 billion yen from these asset sales throughout the fiscal year.S&P Global Ratings adjusted 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 decline due to its substantial OpenAI capital commitment.According to S&P, SoftBank could mitigate these risks through additional asset monetization.For the complete fiscal year, SoftBank reported net income of 5 trillion yen. Both the Vision Fund and its telecommunications business segment served as primary profit contributors.Chief Executive Officer Masayoshi Son has positioned artificial intelligence as the central pillar of SoftBank’s long-term strategic vision. OpenAI continues to face intensifying competition from technology giants including Google and emerging players like Anthropic.The post SoftBank’s Quarterly Earnings Surge 300% Thanks to OpenAI Stake Valuation appeared first on Blockonomi.