Sony Group Corp. has raised its 2025 profit forecast after posting stronger-than-expected second-quarter earnings, supported by robust performance in its music and imaging businesses. The Japanese technology giant reported an operating profit of 429 billion yen ($2.78 billion), beating market estimates of 398.44 billion yen, according to LSEG SmartEstimates.

Revenue rose 5% year over year to 3.108 trillion yen ($20.14 billion), also surpassing forecasts. Operating profit climbed 10% from a year earlier, prompting Sony to boost its full-year operating profit outlook by 100 billion yen, or 8%, and lift its annual revenue projection by 300 billion yen, or 3%.

Following the announcement, Sony shares jumped more than 6% on the Tokyo Stock Exchange. The company also approved a share buyback program worth up to 100 billion yen ($648 million).

Imaging Division Becomes Sony’s Top Profit Engine

Sony’s imaging and sensing solutions business delivered a standout performance, with operating profit surging nearly 50% year over year to 138.3 billion yen. The division, which develops advanced semiconductors used in smartphones, automotive, and industrial systems, became the company’s most profitable segment of the quarter.

The imaging division’s strong showing underscores Sony’s leadership in sensor technology — a sector increasingly vital to next-generation devices and AI-driven imaging systems.

Music Segment Hits High Notes as Global Demand Surges

Sony’s music business posted a 27.65% profit increase to 115.4 billion yen, powered by streaming growth and publishing revenue. The segment’s steady expansion continues to anchor Sony’s creative portfolio, reinforcing its strategic focus on recurring digital income streams.

The company’s entertainment assets have benefited from global content demand, even as other divisions face tighter margins.

PlayStation Revenue Rises, But Profits Slip

Sony’s game and network services segment — which includes its PlayStation console and PlayStation Plus subscription — maintained strong sales but saw operating profit decline 13.26% to 120.4 billion yen in the September quarter.

While digital game sales and subscriptions continue to perform well, hardware shipments have leveled off after several quarters of strong demand.

The division remains Sony’s largest revenue driver, highlighting the company’s ongoing reliance on its gaming ecosystem despite tighter profitability.

Picture Division Hit Despite ‘KPop Demon Hunters’ Success

Sony’s picture segment reported a 25% year-over-year profit decline, despite the global success of KPop Demon Hunters, an animated film produced by Sony Pictures Animation. The movie, which premiered on Netflix in June, became the streaming platform’s most-watched film ever and broke soundtrack records.

However, Sony missed most of the financial upside after selling the film’s exclusive rights to Netflix, reportedly earning an initial $25 million profit from the deal. Netflix credited the film for contributing to its 17% revenue growth during the September quarter.

In a positive development, a sequel has already been confirmed, with Netflix reportedly paying Sony a $15 million performance bonus for the film’s strong results.

Trade Deal Eases Tariff Burden

Sony’s revised forecast also reflects easing trade pressures after Japan and the United States reached an agreement in July to reduce export tariffs. Duties on Japanese goods fell from 25% to 15% under the new deal, effective August 7, trimming Sony’s expected tariff losses to 50 billion yen from 70 billion yen.

The reduction provides a moderate tailwind for Sony’s export-heavy operations as it navigates a complex global trade environment.

PHOTO: UNSPLASH

This article was created with AI assistance.