Sony Earnings Beat Raises Forecast

Sony Group Corporation (SONY) reported stronger-than-expected operating profit for the December quarter on Feb. 5, 2026, and raised its full-year FY2025 guidance. The company cited robust performance in Game & Network Services, Music, and image sensors despite rising memory-chip costs and U.S. tariffs.

Quarter Results and Segment Performance

Sony’s operating income for the three months ended Dec. 31, 2025, reached ¥515.0 billion, up 22.0% year on year. Revenue rose 1.0% to ¥3.71 trillion, while net income attributable to stockholders increased 11.0% to ¥377.3 billion. Continuing-operations earnings per share (EPS) rose 11.0% to ¥62.82. For the nine months through December, net income attributable totaled ¥947.78 billion, operating income was ¥1.28 trillion, and revenue reached ¥9.44 trillion, up 12.4%, 21.0%, and 2.3% respectively.

Game & Network Services remained the main profit driver, delivering operating income of ¥140.8 billion, a 19.0% increase despite a 4.0% revenue decline to ¥1.6 trillion. Console and hardware revenue fell 23.0% to ¥450.4 billion, while game-sales revenue rose 6.5% to ¥835.5 billion, with microtransactions and in-game purchases accounting for half of that total. Gaming services revenue climbed 12.6% to ¥199.3 billion. PlayStation 5 sales reached 8 million units in the quarter, bringing cumulative sales to 92.2 million. Game sales volume totaled 97.2 million copies, including 13.2 million first-party titles, and PlayStation Network monthly active users hit a record 132 million in December.

The Music division posted operating income of ¥106.4 billion, with a 19.6% margin. Combined recorded music and publishing revenue in calendar Q4 exceeded USD $3.01 billion for the first time, up 11.4% year on year. Recorded music revenue was USD $2.30 billion, including USD $1.45 billion from streaming. Other revenue from live events, merchandise, and licensing totaled USD $583.5 million. Publishing revenue reached USD $703 million, with streaming accounting for USD $418 million. Adjusted operating income before depreciation and amortization (OIBDA) for the division was ¥133.2 billion (USD $865 million), a 24.6% margin.

Sony Pictures Entertainment posted revenue of USD $2.3 billion, down 12.0% year on year, and operating income of USD $197 million, down 11.0%. The decline was concentrated in motion pictures, where revenue fell 29% to USD $792 million, and theatrical receipts dropped 60% to USD $98 million. Television revenue was USD $133 million, home entertainment USD $112 million, and streaming USD $337 million. The quarter’s top title, Chainsaw Man – The Movie: Reze Arc, generated USD $117 million globally.

Guidance and Strategic Outlook

Sony raised its full-year FY2025 guidance, projecting net income attributable to stockholders of ¥1.13 trillion, operating income of ¥1.54 trillion, and revenue of ¥12.30 trillion. The revised outlook reflects strength in entertainment and semiconductor businesses and includes a foreign-exchange benefit from a weaker yen. Management noted that U.S. tariffs are expected to reduce operating profit by ¥50 billion this fiscal year and acknowledged rising memory-chip costs as a headwind.

The earnings beat and raised guidance highlight a shift toward higher-margin, recurring revenue streams—such as software and online services in gaming and streaming and publishing in music—that have offset weaker hardware sales and a softer slate in Pictures. However, tariffs and semiconductor cost inflation remain potential challenges for future results.