TLDR
- SoftBank Q1 net income fell 17.7% to 347.33 billion yen ($2.20B), nearly double Bloomberg estimates of 165.83 billion yen
- Total investment gains jumped nearly 300% to 1.86 trillion yen, driven by a 1.33 trillion yen gain on its Intel stake
- Intel stock is up nearly 400% in 2026, after rising over 200% in the June quarter alone
- SoftBank’s OpenAI investment stood at $44.6 billion as of June 30, with a fair value of $89.6 billion
- SoftBank secured a new $10 billion margin loan backed by its OpenAI stake, signed with Goldman Sachs, JPMorgan, and others
SoftBank reported fiscal first-quarter net income of 347.33 billion yen ($2.20 billion), down 17.7% year-over-year but nearly twice what analysts had expected. Bloomberg consensus had pegged the figure at 165.83 billion yen.
SOFTBANK’S $2B INTEL BET DELIVERS ¥1.33T QUARTERLY GAIN
SoftBank’s April-June net profit fell 18% YoY to ¥347.3B, but still beat the ¥148.4B consensus.
Total investment gains reached ¥1.85T, including a ¥1.33T gain on Intel after its shares more than tripled during the quarter.… pic.twitter.com/GNPHKX352O
— Wall St Engine (@wallstengine) August 6, 2026
Net sales climbed 10.9% to 2.02 trillion yen.
The big story this quarter was Intel. SoftBank logged a 1.33 trillion yen investment gain on its Intel stake, which it acquired for around $2 billion in mid-2025.
Intel’s stock has surged nearly 400% in 2026. The chipmaker’s turnaround picked up pace after a strong Q1 earnings print and reports it had landed Apple as a major foundry customer.
SoftBank’s total investment gains nearly tripled to 1.86 trillion yen. Its Vision Fund portfolio also contributed, logging a 460.1 billion yen investment gain for the quarter.
Costs Rise as OpenAI Bet Grows
Those gains helped absorb a more than 100% increase in selling, general and administrative expenses. Finance costs also roughly doubled, tied to bridge loans used to fund its OpenAI investments.
SoftBank invested $10 billion in OpenAI in both April and July. That is part of a planned $30 billion additional investment, with the next tranche expected in October.
Total cumulative investment in OpenAI is expected to reach $64.6 billion by then. As of June 30, the stake carried a fair value of $89.6 billion, unchanged from the end of March.
SoftBank’s AI computing segment posted stronger sales, driven largely by Arm Holdings, which many consider the standout asset in the portfolio.
$10 Billion Margin Loan Backed by OpenAI Stake
Separately, SoftBank secured a $10 billion margin loan backed by its OpenAI stake. The two-year facility was signed Wednesday with Goldman Sachs Bank USA, JPMorgan Chase Bank NA, Mizuho Securities USA, Apollo Global Funding, and Sumitomo Mitsui Banking Corp.
Proceeds will be used for general corporate purposes across the group and its Vision Fund II-2. SoftBank is acting as guarantor on the loan.
The agreement includes provisions requiring cash or early repayment if OpenAI’s preferred share value drops substantially. It follows a $40 billion bridge loan SoftBank had already arranged for its OpenAI investments, which attracted 21 new lenders during syndication last month.
Investors have been watching SoftBank’s rising debt levels closely, given the scale of its AI bets and the uncertainty around long-term returns.
SoftBank’s total planned investment in OpenAI is now expected to reach approximately $65 billion by October 2026.
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