Sony raises full-year profit forecast 8% after Q1 beat

Sony reported Q1 operating income of ¥476.5 billion, up 40% from a year earlier, beating estimates and setting a record for the quarter.

"The G&NS, Music, and I&SS segments posted record profits for the first quarter," Chief Financial Officer Lin Tao said.

Sales rose 8.2% to ¥2.84 trillion, while net income climbed 32% to ¥342.2 billion. Diluted EPS came in at ¥57.82, up from ¥42.84 a year earlier. In dollar terms, EPS of $0.3645 beat the $0.2834 consensus by 28.6%, while revenue of $17.81 billion topped the $17.17 billion estimate by 3.7%.

The company raised its full-year operating income forecast 8% to ¥1.72 trillion and lifted sales guidance 2% to ¥12.5 trillion. Shares rose 3.16% in premarket trading to $23.49. The guidance increase reflects roughly ¥80 billion in expected US tariff refunds, with about 70% already received in the first quarter.

Metric	Actual	Consensus	Beat/Miss
Revenue	$17.81B	$17.17B	+3.7%
EPS	$0.3645	$0.2834	+28.6%
Operating income	¥476.5B	—	+40% YoY

Game & Network Services posted operating income of ¥202 billion, up 37%, helped by US tariff refunds and cost improvements. PlayStation monthly active users reached 125 million in June, a record for that month, though total play time fell 4% year over year. The segment's full-year operating income forecast was raised 10% to ¥660 billion.

Imaging & Sensing Solutions delivered the largest profit jump, with operating income surging about 2.3 times to ¥122.2 billion on higher average selling prices for mobile image sensors. The company raised its full-year segment operating income forecast 5% to ¥420 billion. Music operating income rose 14% to ¥105.9 billion on streaming growth and live-event revenue.

The July 28 Kumamoto earthquake suspended production at Sony's semiconductor facility in Kikuyo Town, with output expected to return to pre-earthquake levels by mid-August. The financial impact was not included in the full-year forecast. Management said the damage was less severe than the 2016 quake and does not expect a major effect on annual semiconductor results.

Sony also announced it will end PS5 disc production in January 2028, citing the shift to digital content. The company proposed making lens maker Tamron a wholly owned subsidiary and is in talks with TSMC on a joint venture for next-generation image sensors, with ¥10 billion in preparation costs booked for the current fiscal year.

The guidance raise points to management confidence that tariff refunds and currency tailwinds will support earnings through fiscal 2026. Investors will watch second-quarter results for the earthquake's financial impact and the timing of the TSMC joint venture agreement.

This article is for informational purposes only and does not constitute investment advice.