Prime Highlight:
- Sony reported a stronger-than-expected rise in December-quarter operating profit and lifted its full-year outlook, supported by favorable foreign exchange movements.
- Solid growth in the music and imaging businesses helped offset weakness and rising costs in the PlayStation hardware segment.
Key Facts:
- Operating profit rose 22% year-on-year to 515 billion yen, beating market expectations of 468.9 billion yen, while revenue reached 3.71 trillion yen.
- Sony raised its full-year operating profit forecast to 1.54 trillion yen and increased its annual revenue projection to 12.3 trillion yen.
Background
Sony on Thursday reported a strong rise in operating profit for the December quarter, beating market expectations and prompting the company to raise its full-year outlook. The Japanese technology and entertainment major benefited from favorable foreign exchange rates, which helped offset rising costs in its hardware business.
Operating profit for the quarter rose 22% from a year earlier to 515 billion yen, compared with analysts’ expectations of 468.9 billion yen. Revenue came in at 3.71 trillion yen, slightly above forecasts and up 1% year-on-year. The performance marked a rebound from the previous quarter, when profit had declined on an annual basis.
Following the results, Sony raised its full-year operating profit forecast to 1.54 trillion yen, up 110 billion yen from its earlier estimate. The company also increased its annual revenue projection by 300 billion yen to 12.3 trillion yen, while keeping its expected losses from U.S. tariffs unchanged at 50 billion yen.
Sony shares initially rose more than 5% after the earnings announcement but later reversed course, trading 0.87% lower by early afternoon in Tokyo.
Sales in Sony’s game and network services division, home to the PlayStation brand and its largest revenue contributor, fell to 1.613 trillion yen, down from a year earlier. While digital game sales and PlayStation Plus subscriptions continued to grow, console hardware shipments remained weak.
The gaming business also faces pressure from rising component costs. PlayStation consoles depend on DRAM memory chips, which are in short supply due to strong demand from artificial intelligence and data centers. Industry data shows DRAM prices may surge sharply in the current quarter.
Helping balance these challenges were strong results from other segments. Sony’s music business posted a 12.6% rise in revenue, driven by live events, merchandising and streaming. Revenue in its imaging and sensing solutions unit also grew by more than 20%, reflecting strong demand for its sensor technologies.
