Sony has raised its full-year earnings forecast after reporting stronger-than-expected first-quarter results, driven by solid performance in its gaming and image sensor businesses.
The Japanese technology and entertainment giant announced that its group operating profit rose 40% year-over-year to 476.5 billion yen during the April–June quarter, beating analyst expectations.
Full-Year Guidance Increased
Following the strong quarterly performance, Sony increased its full-year operating profit forecast by 8% to 1.72 trillion yen (approximately $10.7 billion) for the financial year ending March 2027.
The company said the improved outlook reflects the positive impact of U.S. tariff refunds, favorable exchange rates, and tighter cost controls within its gaming division.
Gaming Business Drives Growth
Sony’s PlayStation business remained one of the biggest contributors to quarterly earnings despite a decline in hardware sales.
The company sold 1.6 million PlayStation 5 (PS5) consoles during the first quarter, roughly one-third fewer than the same period last year.
However, Sony is expected to benefit significantly from the upcoming launch of Grand Theft Auto VI (GTA VI) on November 19, with analysts predicting it will drive higher game sales and user engagement on the PlayStation platform.
Ampere Analysis estimates that publisher Take-Two Interactive could sell 30 million to 35 million copies of GTA VI by the end of the year.
Sony is also preparing to release its next major first-party title, God of War: Laufey, scheduled to launch in February.
Memory Chip Supply Secured
Unlike several technology companies facing supply concerns, Sony said it has secured enough memory chip supply to meet its production targets for the current financial year.
The company stated there are no changes to its hardware profitability plans, despite rising memory prices affecting the broader electronics industry.
Growing demand for AI technologies has increased memory chip costs, creating supply pressures for major manufacturers, including Apple and Samsung Electronics.
Image Sensor Business Performs Well
Sony also raised its forecast for its image sensor business, citing stronger sales and favorable foreign exchange rates.
The company remains one of the world’s leading manufacturers of image sensors used in smartphones and digital cameras.
Separately, camera lens manufacturer Tamron confirmed it has received an acquisition proposal from Sony and has established a special committee to evaluate the offer.
Tamron supplies camera lenses to Sony as well as other major brands, including Nikon and Canon.
Market Reaction
Sony shares erased earlier losses following the earnings announcement and traded nearly flat during Friday’s session in Tokyo.
Before the earnings release, the company’s stock had fallen around 8% year-to-date, as investors remained cautious about rising component costs and the impact of artificial intelligence on the technology sector.
