Sony Group Corporation has raised its annual earnings forecast after reporting double-digit profit growth for the July–September quarter. This surge was driven by strong performances in its music and image sensor businesses, which offset slower growth in gaming and consumer electronics.
The Tokyo-based conglomerate posted an operating income of JPY429 billion ($2.78 billion) for the quarter ending September 30, marking a 10% increase from JPY389 billion in the same period last year. Sales rose 5% to JPY3.11 trillion ($20.17 billion), while net income attributable to Sony’s shareholders climbed 7% to JPY311.4 billion ($2.02 billion).
Sony revised its forecast for operating income in the fiscal year ending March 2026, now expecting JPY1.43 trillion ($9.27 billion), an 8% increase over its previous guidance and 12% higher than last year’s result. The company cited increased earnings from its music and imaging & sensing solutions divisions, alongside a smaller-than-expected impact from new U.S. tariffs.
The music segment was one of the standout performers in the quarter. Sales surged 21% year-on-year to JPY542.4 billion ($3.51 billion), with operating income jumping 28% to JPY115.4 billion ($749 million). This growth was driven by a boost in streaming, publishing, and the phenomenal success of Demon Slayer: Kimetsu no Yaiba Infinity Castle.
Sony’s Visual Media & Platform division, which handles anime and related content through its Aniplex subsidiary, saw a significant 70% increase in revenue, rising from JPY62.2 billion to JPY105.9 billion ($673 million). The Demon Slayer film’s worldwide success lifted not only soundtrack and licensing sales but also merchandise sales globally. By the end of September, the film had grossed $312 million worldwide. The division’s profit contribution to Sony Music grew to nearly 30%, up from less than 20% a year ago, highlighting the growing synergy between Sony’s music, animation, and theatrical operations.
Meanwhile, the Imaging & Sensing Solutions division, which supplies smartphone camera sensors to major companies like Apple, reported a 15% increase in sales to JPY614.6 billion ($3.98 billion) and a 50% profit jump to JPY138.3 billion ($897 million), benefiting from higher shipments and larger sensor sales.
In contrast, the Game & Network Services segment saw a 4% rise in revenue to JPY1.11 trillion ($7.19 billion), but operating income dropped 13% to JPY120.4 billion ($781 million) due to impairment charges related to Bungie’s Destiny 2 and adjustments to capitalised development costs. Excluding these one-off items, segment profit would have risen 23%, reflecting ongoing strength in software and network services.
The Pictures division experienced a 3% drop in revenue to JPY346 billion ($2.24 billion), with operating income falling to JPY13.9 billion ($90 million). Meanwhile, Entertainment, Technology & Services—which includes TVs and audio equipment—saw sales fall 7% to JPY575.7 billion ($3.73 billion), with profits declining to JPY61 billion ($395 million).
Looking ahead, Sony has raised its full-year sales forecast to JPY12 trillion ($77.78 billion) and operating income to JPY1.43 trillion, reflecting stronger contributions from music and imaging divisions, along with a lower-than-expected tariff impact. The company has maintained its interim dividend at JPY12.5 per share, with plans for a year-end dividend of the same amount, totalling JPY25 per share, up from JPY20 the previous year.
On October 1, Sony completed the spin-off of its financial services arm, Sony Financial Group Inc., which will now be treated as a discontinued operation. Going forward, profits from the unit will be accounted for using the equity method. The group’s average foreign exchange rate for the quarter stood at JPY147.4 to the U.S. dollar, compared to JPY149.5 a year earlier.