Sony Group Corp. raised its operating profit forecast for the fiscal year ending March 2026 by 8% to ¥1.43 trillion ($9.48 billion), crediting stronger demand for its entertainment and semiconductor businesses alongside a softer-than-expected hit from U.S. tariffs.
In the July–September quarter, operating profit climbed 10% to ¥429 billion, driven by robust performance in Sony’s music division—particularly its anime segment—and a rebound in its chip sales.
A standout performer was the animated feature Demon Slayer: Kimetsu no Yaiba – Null Castle, which delivered impressive global box-office returns and streaming revenue. The success underscores Sony’s growing influence in Japan’s booming anime sector, which the company increasingly views as a key pillar of its entertainment strategy.
Anime, Chips Power Sony’s Momentum
Sony, once synonymous with home electronics, has successfully redefined itself as a global entertainment and technology leader. Its diversified revenue streams—from film and anime to semiconductors—have insulated the company from volatility in other sectors.
Key highlights from the quarter include:
- Music and anime division revenue rose sharply, supported by global streaming demand.
- Chip unit sales increased, driven by larger image sensors used in high-end smartphones.
- Weaker yen further boosted overseas earnings when converted into Japanese currency.
Sony also announced plans to repurchase up to 35 million shares, worth about ¥100 billion, in a move signaling confidence in its long-term growth outlook. Shares in Sony jumped 6% on Tuesday following the earnings release.
Gaming Unit Faces Short-Term Setbacks
Despite solid results across entertainment and technology, Sony’s gaming division faced headwinds in the second quarter. Profits fell due to impairment losses tied to “Destiny 2,” a major title under its Bungie subsidiary.
Sony sold 3.9 million PlayStation 5 units, slightly above last year’s quarterly total, yet analysts note slower growth momentum ahead of major game launches. The company is pinning hopes on next year’s release of “Grand Theft Auto VI” from Take-Two Interactive, expected in November 2026, which could reignite sales.
Meanwhile, rival Nintendo raised its annual Switch 2 sales forecast to 19 million units, reflecting strong consumer demand for the new console.
Sony’s strategic balance between its entertainment, semiconductor, and gaming arms continues to drive resilience amid shifting global markets. With anime exports and sensor demand climbing, analysts say the company’s diversified portfolio positions it well for sustained growth into 2026.
