November 11, 2025
Sony Group Corp. raised its full‑year operating profit forecast by 8% to ¥1.43 trillion (≈$9.3–$9.5 billion) after a stronger‑than‑expected September quarter, crediting booming anime‑driven music revenues and surging demand for smartphone image sensors. The new guidance also reflects a smaller estimated hit from U.S. tariffs. 1
Quarter at a glance (July–September, FY2025 Q2)
- Sales: ¥3,107.9 billion (+5% YoY)
- Operating income:¥429.0 billion (+10% YoY)
- Operating margin: 13.8% (+0.7 pts YoY)
- Net income (attributable to shareholders): ¥311.4 billion (+7% YoY)
These figures are for continuing operations under IFRS and exclude the deconsolidated Financial Services business. 1
Why the outlook went up
Sony’s FY2025 (year ending March 31, 2026) guidance now calls for ¥12.0 trillion in sales and ¥1.43 trillion in operating income. Management said the upward revision stems from (1) higher profitability in Imaging & Sensing Solutions (I&SS) and Music, and (2) a decrease in the estimated tariff impact versus August. Net income guidance is ¥1.05 trillion. 1
Public market reaction was positive, with shares rising after the announcement as investors focused on anime momentum and the tariff recalibration. 2
Segment highlights
Music: Anime and streaming do the heavy lifting
Music revenue jumped 21% YoY in Q2 and operating income rose 28%, led by Crunchyroll’s worldwide theatrical distribution of Demon Slayer: Kimetsu no Yaiba – Infinity Castle and continued growth in recorded‑music and publishing streaming. Sony also lifted Music’s full‑year outlook. 1
Pictures: Softer theatrical slate, Crunchyroll offsets
In Pictures, Q2 sales fell 3% YoY (U.S. dollar basis: ‑2%) and operating income declined 25% on a lighter theatrical slate compared with last year’s hits. That said, Crunchyroll revenue tied to Demon Slayer – Infinity Castle and subscriber growth helped cushion results. Full‑year Pictures guidance was left unchanged. (Q2 Pictures operating income: ¥13.9 billion, roughly $93 million.) 1
Imaging & Sensing Solutions: Big sensors, big profit
I&SS delivered the breakout performance: sales +15% YoY and operating income +50% on higher unit prices and mix as larger image sensors were adopted in new flagship smartphones at a “major customer,” plus increased shipments for digital cameras. Sony raised I&SS full‑year sales and operating income forecasts. 1
Games & Network Services (PlayStation): Solid sales, non‑recurring charges
G&NS sales grew 4% YoY, but operating income fell 13% due to non‑recurring items, including a ¥31.5 billion impairment related to Bungie’s Destiny 2 and an ¥18.3 billion expense from a correction of previously capitalized development costs. Ex‑these items, management said the business would have shown stronger underlying growth. Full‑year G&NS operating‑income guidance was unchanged. 1
Platform metrics:
- PS5 hardware shipments:3.9 million units in Q2 (2.5 million in Q1).
- PlayStation Network monthly active users:119 million at quarter‑end.
- Full‑game digital download ratio (PS4/PS5):72% in Q2. 3
Entertainment, Technology & Services (Electronics): Tariffs weigh on outlook
ET&S (consumer and professional electronics) saw sales down 7% YoY and operating income down 13% on lower display volumes. Sony trimmed ET&S operating‑income guidance by ¥20 billion, citing tariff effects, while continuing cost controls. 1
Forecast, capital returns and tariff context
- Group guidance (continuing ops): Sales ¥12.0T (‑0.3% YoY), operating income ¥1.43T (+12.0% YoY), income before taxes ¥1.46T (+8.7% YoY), and net income ¥1.05T (‑1.6% YoY). 4
- Driver of the upgrade: Relative to August, Sony added ¥100 billion to full‑year operating income (after tariff impact), citing higher Music and I&SS profitability and a smaller estimated tariff drag. 1
- Share repurchase: The board authorized a buyback of up to 35 million shares (max) for up to ¥100 billion, from Nov. 12, 2025 to May 14, 2026, via market purchases on the TSE. 5
News outlets similarly highlighted the anime‑powered beat and reduced tariff headwind, with Sony now targeting ¥1.43T in operating profit for the year. 2
Key takeaways for investors and the industry
- Anime is now a material earnings engine. Through Crunchyroll and Sony’s broader music pipeline, Demon Slayer – Infinity Castle did more than fill theaters—it lifted Music and helped offset a softer theatrical slate at Pictures. Expect management to keep leaning into IP‑led franchises that travel across streaming, cinema and merchandise. 1
- Silicon strength is back. With larger, higher‑priced CMOS image sensors gaining traction at marquee smartphone customers—and FX tailwinds—I&SS is doing the heavy lifting on the consolidated margin. 1
- PlayStation remains resilient, but watch mix and non‑recurring costs. PS5 shipments and network activity are healthy, yet impairments and accounting corrections masked underlying momentum. The platform’s digital tilt (72% download ratio) supports profitability into the holiday quarter. 1
- Tariff sensitivity is improving—but not gone. The company explicitly tied part of the guidance raise to a smaller estimated tariff impact versus August, while ET&S still faces pressure. Policy shifts remain a variable to monitor. 1
The bottom line
Sony’s September‑quarter print shows a balanced entertainment‑plus‑components model hitting its stride: anime‑led music, subscription‑adjacent distribution (Crunchyroll), and high‑end image sensors are doing the heavy lifting while PlayStation navigates one‑off charges. With a lifted FY profit outlook and a new ¥100B buyback, management is signaling confidence heading into the holiday season and the back half of the fiscal year. 1
Source notes
- Q2 results and segment details: Sony FY2025 Q2 presentation slides and consolidated financial summary. 1
- Games, Music, Pictures, ET&S and I&SS breakouts: Sony FY2025 Q2 presentation, segment pages. 1
- PS5 shipments and PSN metrics: FY2025 Q2 supplemental information. 3
- Buyback authorization: Sony IR buyback notice (Nov. 11, 2025). 5
- Context on guidance upgrade and market reaction: Reuters report on Nov. 11, 2025. 2
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