Sony Group has revised its full-year profit forecast upward after recording double-digit profit growth in the July-September period, supported by strong performance in the music and image sensor businesses that offset slumps in games and consumer electronics.
The Tokyo-based conglomerate reported operating profit of 429 billion yen ($2.78 billion) for the quarter ended Sept. 30, up 10% from 389 billion yen a year earlier, while sales rose 5% to 3.11 trillion yen ($20.17 billion). Net income attributable to Sony shareholders increased 7% to 311.4 billion yen ($2.02 billion).
Sony raised its operating profit forecast for the year ending March 2026 to 1.43 trillion yen ($9.27 billion), an 8% increase from the previous forecast and 12% above the previous year’s results, citing increased revenue in the Music and Imaging & Sensing Solutions divisions and a lower-than-expected hit from new U.S. tariffs.
The music sector was one of the standout performers of the quarter. Sales increased 21% year-on-year to 542.4 billion yen ($3.51 billion), and operating profit increased 28% to 115.4 billion yen ($749 million), driven by growth in streaming and publishing and the smash hit of “Demon Slayer: Kimetsu no Yaiba: Mugenjou.”
Sony’s Visual Media & Platforms division, which handles anime and related content through its Aniplex subsidiary, saw quarterly revenue jump more than 70% from 62.2 billion yen to 105.9 billion yen ($673 million) as the movie’s theatrical release boosted sales of soundtracks, licenses and merchandise around the world. The feature was distributed globally by Crunchyroll and Sony Pictures and 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% in the same period last year, highlighting the deep cross-segment synergies between Sony’s music, anime and theater businesses.
Imaging & Sensing Solutions, which supplies smartphone camera sensors to manufacturers such as Apple, benefited from increased shipments and higher prices for large sensors, with sales up 15% to 614.6 billion yen ($3.98 billion) and profits up 50% to 138.3 billion yen ($897 million).
In contrast, the Game & Network Services division reported a 4% increase in revenue to 1.11 trillion yen ($7.19 billion), but operating profit fell 13% to 120.4 billion yen ($781 million) due to impairment charges and capitalized development cost adjustments related to Bungie’s Destiny 2. Excluding these one-time items, segment profit would have increased 23%, reflecting continued strength in software and network services.
The film division’s sales fell 3% to 346 billion yen ($2.24 billion) and operating profit fell to 13.9 billion yen ($90 million), while the Entertainment, Technology and Services division, which includes television and audio equipment, saw sales decline 7% to 575.7 billion yen ($3.73 billion) and profit 61 billion yen ($395 million).
Sony currently expects full-year sales to be 12 trillion yen ($77.78 billion) and operating profit to be 1.43 trillion yen, with music and images making a large contribution and reflecting the reduction in customs duties. The company plans to keep its interim dividend unchanged at 12.5 yen per share, and the year-end dividend is also scheduled to be the same at 25 yen per share (20 yen for the same period last year).
Effective October 1, Sony completed the spin-off of its financial services division, Sony Financial Group, which is now treated as a discontinued operation. Beginning with the third quarter, the segment’s earnings will be accounted for using the equity method. The group’s average exchange rate for the quarter was 147.4 yen to the dollar, compared to 149.5 yen for the same period last year.
