Sony Raises Annual Forecast After Operating Profit Surges 22%
Tokyo, Thursday, 5 February 2026.
Sony’s operating profit surged 22% to 515 billion yen, defying hardware headwinds. Consequently, the company raised its full-year profit outlook to 1.54 trillion yen, driven by strength in image sensors.
Quarterly Earnings Beat Expectations
For the quarter ended December 31, Sony Group Corporation (SONY) delivered a robust financial performance that outpaced market predictions. The company reported operating profit of 515 billion yen, surpassing the analyst consensus estimate of 468.9 billion yen by 46.1 billion yen [1]. Revenue also exceeded projections, coming in at 3.71 trillion yen ($23.68 billion) against expectations of 3.69 trillion yen, a positive deviation of 0.02 trillion yen [1]. Net income attributable to the company climbed 11% from the prior year to 377.3 billion yen ($2.41 billion) [2].
Buoyed by these results, Sony has revised its forecasts upward for the full fiscal year ending March 2026. The conglomerate now anticipates operating profit will reach 1.54 trillion yen, an increase of 110 billion yen—or 8%—from its previous guidance [1]. The revenue outlook was similarly lifted by 300 billion yen to a new total of 12.3 trillion yen [1]. Additionally, the forecast for annual net income attributable was raised to 1.13 trillion yen from the prior estimate of 1.05 trillion yen [2][3].
Gaming Sector Faces Hardware Headwinds
The Game & Network Services division, traditionally a primary revenue engine for Sony, presented a mixed financial picture this quarter. Divisional sales totaled 1.613 trillion yen, representing a year-over-year decline of 68.7 billion yen [1]. This contraction was primarily driven by subdued hardware shipments [1]. However, despite the drop in sales volume, the unit’s operating income improved, supported by a strategic shift toward higher-margin digital software purchases and continued growth in the PlayStation Plus subscription service [1][2].
Looking ahead, the hardware sector is expected to encounter significant cost pressures. Contract prices for conventional DRAM chips—essential components for PlayStation consoles—are projected to surge by 90% to 95% in the current quarter [1]. This sharp price increase is attributed to supply constraints resulting from escalating demand from artificial intelligence and data center operators [1]. Consequently, Sony anticipates these rising component costs will create financial headwinds for its hardware business throughout the remainder of the fiscal year [1].
Imaging Strength and Strategic Outlook
In contrast to the challenges in hardware, the Imaging and Sensing Solutions unit emerged as a standout performer. Both sales and operating income for this segment rose sharply, fueled by robust demand for image sensors from global smartphone manufacturers [2]. Notably, the division benefited significantly from the strong sales performance of Apple Inc.’s recently launched iPhone 17 line during the holiday quarter, which utilizes Sony’s advanced camera modules [2].
Sony’s Music division also recorded strong growth, contributing to a company-wide operating income margin improvement of 2.4 points, bringing it to 13.9% [2]. While the Pictures division lagged behind during the quarter, the overall strength of Sony’s diverse portfolio allowed it to raise its annual outlook, even as it maintained an estimate of 50 billion yen in potential losses related to U.S. tariffs [1][2].