Sony Lifts Annual Forecast as Sensor and Gaming Units Drive 11% Profit Surge
TOKYO — Sony Group Corp. delivered a stronger-than-expected performance in the critical holiday quarter, with net profit climbing 11% year-on-year to 377.3 billion yen ($2.4 billion). The solid results, driven by its semiconductor and gaming divisions, have prompted the Tokyo-based conglomerate to upgrade its annual profit forecast.
The company now anticipates a net profit of 1.13 trillion yen ($7.2 billion) for the fiscal year ending March 2026, up from its previous estimate of 1.05 trillion yen. This revised guidance points to a nearly 6% increase from the prior year, underscoring sustained momentum despite a mixed performance in its film segment.
Quarterly sales edged up 1% to 3.71 trillion yen ($23.6 billion). Operating profit saw broad-based improvement, with the imaging solutions business—a key supplier of sensors for smartphones and cameras—and the games and network services unit, home to the PlayStation console, leading the growth. The company cited a recovering global smartphone market as a tailwind for its sensor sales.
While its music arm, representing artists like Beyoncé and SZA, remained a steady contributor, the pictures division faced a tough comparison. The year-ago quarter had been significantly boosted by the theatrical success of "Venom: The Last Dance." The latest results also included a one-time gain from an internal land transfer between group companies.
The upward revision reflects confidence in Sony's core hardware and content ecosystem, even as it navigates the cyclical nature of the entertainment industry. Analysts suggest the performance demonstrates the strategic buffer provided by its diversified business model.
Market Voices
Kenji Tanaka, Tech Analyst in Tokyo: "This is a textbook example of portfolio strength. While movies are hit-driven, the sensor and gaming businesses provide recurring, structural profitability. The raised forecast is a clear signal that management sees this dual-engine growth continuing."
Akari Sato, Retail Investor in Osaka: "As a long-term shareholder, I'm pleased but not surprised. Sony has consistently executed its 'hardware meets content' strategy. The sensor business, in particular, is brilliantly positioned for the AI and automotive future."
Michael Reed, Media Critic (Blog: "Stream Wars"): "Let's not get carried away. A 1% sales growth is anaemic. They're leaning on a land sale and a temporary smartphone bump to pretty up the numbers. Where's the next big franchise? Where's the streaming profitability? This is a company living off past glories while its core gaming platform faces unprecedented pressure."
Dr. Li Wei, Economics Professor at National University of Singapore: "Sony's results are a useful barometer for global consumer tech demand. The strength in sensors indicates manufacturing and premium smartphone demand is stabilizing, which has positive implications for the broader electronics supply chain in Asia."
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama