SoftBank’s AI funding plans face scrutiny at earnings report

SoftBank Group built its reputation on making enormous, sometimes audacious bets. The upcoming Q1 FY2026 earnings report, expected around August 6, is a moment where that confidence gets stress-tested against the balance sheet. The company has committed over $60 billion to OpenAI and related AI infrastructure. That number is now the centerpiece of every analyst question SoftBank will face. The numbers investors are watching SoftBank is expected to report a net profit of approximately 148.4 billion yen, or about $941 million, for the quarter. The firm faces $30 billion in financial obligations due in the second half of 2026. That is a hard deadline, not a forecast, and it is concentrating minds across the investment community. SoftBank stock has dropped nearly 50% since early June 2026. The company’s credit default swap costs have also climbed, meaning the market is charging more to insure against SoftBank defaulting. SoftBank maintains a self-imposed loan-to-value limit of 25%, a rule it set to reassure creditors. How SoftBank got here SoftBank’s ownership in OpenAI has reached around 11% following more than $30 billion in investments. To fund that commitment, SoftBank has been sel...