Sony Raises Full-Year Forecast as Music and Image-Sensor Businesses Strengthen
Sony reported first-quarter results for fiscal 2026 on Friday, saying strong growth in its music, gaming and image-sensor businesses drove a 40% year-over-year increase in operating profit. The company also raised its full-year guidance. Revenue rose 8.2% from a year earlier to JPY 2.838 trillion. Operating profit was JPY 476.5 billion, well above the market forecast of JPY 361 billion. Net profit attributable to shareholders increased 32% year over year to JPY 342.2 billion, while earnings per share were JPY 57.82. The Imaging & Sensing Solutions segment was the strongest performer, with operating profit reaching JPY 122.2 billion, up 125% from a year earlier. Sony attributed the increase mainly to higher sales of image sensors for smartphones and an improved product mix. Music revenue rose 21% year over year to JPY 562 billion, supported by continued growth in streaming services and live-event revenue. Revenue in the Game & Network Services business was broadly flat, but operating profit increased 37% to JPY 202 billion, helped by U.S. tariff rebates and favorable exchange rates. Sony raised its fiscal 2026 full-year operating-profit forecast by 8% to JPY 1.72 trillion. It raised its revenue forecast to JPY 12.5 trillion and its net-profit forecast to JPY 1.21 trillion. The company said tariff rebates, favorable exchange rates, and strong performance in its entertainment and sensor businesses were the main reasons for the upgrades. Addressing market concerns about memory-chip cost pressures, Sony reiterated that it had secured sufficient memory-chip supplies for fiscal 2026 and maintained its outlook for hardware profitability. The company expects to gradually resume production affected by the Kumamoto earthquake on Aug. 4 and return to pre-earthquake levels by mid-August.
Revenue rose 8.2% from a year earlier to JPY 2.838 trillion. Operating profit was JPY 476.5 billion, well above the market forecast of JPY 361 billion. Net profit attributable to shareholders increased 32% year over year to JPY 342.2 billion, while earnings per share were JPY 57.82.
The Imaging & Sensing Solutions segment was the strongest performer, with operating profit reaching JPY 122.2 billion, up 125% from a year earlier. Sony attributed the increase mainly to higher sales of image sensors for smartphones and an improved product mix.
Music revenue rose 21% year over year to JPY 562 billion, supported by continued growth in streaming services and live-event revenue. Revenue in the Game & Network Services business was broadly flat, but operating profit increased 37% to JPY 202 billion, helped by U.S. tariff rebates and favorable exchange rates.
Sony raised its fiscal 2026 full-year operating-profit forecast by 8% to JPY 1.72 trillion. It raised its revenue forecast to JPY 12.5 trillion and its net-profit forecast to JPY 1.21 trillion. The company said tariff rebates, favorable exchange rates, and strong performance in its entertainment and sensor businesses were the main reasons for the upgrades.
Addressing market concerns about memory-chip cost pressures, Sony reiterated that it had secured sufficient memory-chip supplies for fiscal 2026 and maintained its outlook for hardware profitability. The company expects to gradually resume production affected by the Kumamoto earthquake on Aug. 4 and return to pre-earthquake levels by mid-August.