Sony Group Raises Guidance Amid Smaller Projected Tariff Hit
By Kosaku Narioka
Sony Group raised its full-year earnings forecasts, thanks to the strength of its music and image-sensor businesses, and projected a smaller tariff hit as second-quarter net profit strengthened.
The Japanese electronics and entertainment company said Tuesday that net profit rose 6.7% from a year earlier to 311.4 billion yen, equivalent to $2.02 billion, for the three months ended September. That beat the estimate of Y278.5 billion in a poll of analysts by data provider Visible Alpha.
Second-quarter revenue increased 4.6% from a year earlier to Y3.108 trillion.
Operating profit rose for its music and image-sensor businesses, though that for its game, movie and entertainment tech businesses declined.
For the year ending March, it projected revenue to decline 0.3% to Y12.000 trillion and net profit to drop 1.6% to Y1.050 trillion. The company previously projected revenue of Y11.700 trillion and net profit of Y970.00 billion.
Sony Group now expects U.S. tariffs to weigh on operating profit by Y50 billion for the current fiscal year, compared with a Y70 billion drag estimated previously.
Sony's shares were recently 5.5% higher, extending gains following the second-quarter results. The stock had risen 32% this year through Monday, driven by hopes that the company's focus on its games and other entertainment businesses would lead to higher earnings.
The company in October spun off its financial business in a bid to focus on its game and other entertainment businesses. Sony has also spent billions of dollars on acquisitions in recent years to beef up its entertainment content.
Sony earlier this year acquired an additional stake in major Japanese publishing house Kadokawa for more than $300 million. In July, it said it planned to acquire a stake of about $460 million in Bandai Namco Holdings, known for popular videogames such as "Pac-Man" and "Tekken," to broaden their collaboration.
In August, Sony raised its recommended retail price for PlayStation 5 consoles in the U.S. by $50 to $549.99, citing a challenging economic environment.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
November 10, 2025 23:02 ET (04:02 GMT)
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