Increased Full-Year Profit Predictions by Sony Group due to Less Anticipated Impact of Tariffs
Sony Group Boasts Record Profits and Raises Forecasts for Fiscal 2025
Sony Group Corporation, the Japanese multinational conglomerate, has announced a significant increase in its operating and net profit forecasts for the fiscal year ending March 2026. The company's strong performances in the gaming and semiconductor businesses have contributed to this positive outlook.
In the first quarter of the fiscal year, Sony Group reported a record high operating profit of 339.9 billion yen, marking a 36.5% increase compared to the same period the previous year. The first-quarter revenues also hit a record high at 2,621.6 billion yen, an increase of 2.2% year-on-year. The first-quarter net profit also reached a record high at 259 billion yen, an increase of 23.3% compared to the same period the previous year.
The improved profit outlook is supported by strong sales in Sony’s games and network services, imaging solutions, and sensors segments. However, the adverse effects of currency exchange rates and tariffs have had some impact.
In a positive development, Sony Group has reduced its estimate of the U.S. tariff impact on its operating profit. The new projected impact for the year ending March 2026, excluding the U.S. tariff effect, is 1,330 billion yen, an increase from the previous estimate of 1,280 billion yen. This revision has contributed to an increase in the full fiscal year profit forecast to 970 billion yen, up from the previous projection of 930 billion yen.
The U.S. tariff impact on Sony Group's operating profit for the same period has been revised downwards to 70 billion yen, from the initial forecast of 100 billion yen. This reduction in the expected negative impact from U.S. tariffs has led to the raise in the consolidated operating and net profit forecasts for fiscal 2025.
The new projected net profit for the same period is 970 billion yen, an increase from 930 billion yen. The sales forecast for the year remains unchanged from the previous estimate.
Sony Group Corporation's revised profit forecasts and strong first-quarter performances indicate a promising future for the company. The company's ability to navigate challenges such as currency exchange rates and tariffs while maintaining strong sales in key segments bodes well for its continued success.
[1] Source: Nikkei Asia [3] Source: Reuters [5] Source: Sony Group Corporation Financial Results Announcement
- Despite the adverse effects of currency exchange rates and tariffs, Sony Group's strong performances in business segments like games and network services, imaging solutions, and sensors have contributed to an increase in the consolidated operating and net profit forecasts for fiscal 2025, as reported by Sony Group Corporation Financial Results Announcement.
- The revised profit forecasts for fiscal 2025, which indicate a promising future for Sony Group Corporation, also include a significant reduction in the expected negative impact from U.S. tariffs, as shown in the Sony Group Corporation Financial Results Announcement.
