Copyright Variety
Sony Group Corporation lifted its annual earnings forecast after posting double-digit profit growth for the July–September quarter, fueled by strong performances in its music and image sensor businesses that offset softness in gaming and consumer electronics. The Tokyo-based conglomerate reported operating income of JPY429 billion ($2.78 billion) for the quarter ended Sept. 30, up 10% year-on-year from JPY389 billion, on sales of JPY3.11 trillion ($20.17 billion), a 5% increase. Net income attributable to Sony’s shareholders climbed 7% to JPY311.4 billion ($2.02 billion). Sony raised its forecast for operating income in the year ending March 2026 to JPY1.43 trillion ($9.27 billion), up 8% from the prior guidance and 12% above the previous year’s result, citing higher earnings at its music and imaging & sensing solutions units and a lower-than-expected hit from new U.S. tariffs. The music segment was one of the quarter’s standout performers. Sales surged 21% year-on-year to JPY542.4 billion ($3.51 billion) and operating income jumped 28% to JPY115.4 billion ($749 million), driven by growth in streaming and publishing as well as the blockbuster success of “Demon Slayer: Kimetsu no Yaiba Infinity Castle.” Sony’s Visual Media & Platform division, which handles anime and related content through its Aniplex subsidiary, saw quarterly revenue climb from JPY62.2 billion to JPY105.9 billion ($673 million), a rise of more than 70%, as the film’s theatrical rollout lifted soundtrack, licensing, and merchandise sales worldwide. The feature, distributed globally by Crunchyroll and Sony Pictures, had grossed $312 million worldwide by the end of September. Visual Media & Platform’s profit contribution rose to just under 30% of Sony Music’s total profit, up from less than 20% a year earlier, underscoring the deep cross-segment synergy between Sony’s music, animation, and theatrical operations. The Imaging & Sensing Solutions division, which supplies smartphone camera sensors to Apple and other manufacturers, posted a 15% sales gain to JPY614.6 billion ($3.98 billion) and a 50% profit jump to JPY138.3 billion ($897 million), benefiting from increased shipments and higher unit prices for larger sensors. By contrast, the Game & Network Services segment reported revenue up 4% to JPY1.11 trillion ($7.19 billion), but operating income fell 13% to JPY120.4 billion ($781 million) due to impairment charges related to Bungie’s “Destiny 2” and adjustments to capitalized development costs. Excluding those one-time items, segment profit would have risen 23%, reflecting continued strength in software and network services. The Pictures division saw revenue dip 3% to JPY346 billion ($2.24 billion) and operating income decline to JPY13.9 billion ($90 million), while Entertainment, Technology & Services – which includes TVs and audio equipment – slipped 7% to JPY575.7 billion ($3.73 billion) in sales and JPY61 billion ($395 million) in profit. Sony now expects full-year sales of JPY12 trillion ($77.78 billion) and operating income of JPY1.43 trillion, reflecting higher contributions from music, imaging, and a smaller tariff burden. The company maintained its interim dividend of JPY12.5 per share and plans a year-end dividend of the same amount, totaling JPY25 per share, up from 20 yen the previous year. Effective Oct. 1, Sony completed the spin-off of its financial services arm, Sony Financial Group Inc., which is now treated as a discontinued operation. From the third quarter onward, profits from the unit will be accounted for under the equity method. The group’s average foreign exchange rate for the quarter was JPY147.4 to the U.S. dollar, compared with JPY149.5 a year earlier.
