Sony has raised its full-year operating profit forecast by 4% to 1.33 trillion yen ($9.01 billion), buoyed by a less severe impact from U.S. trade tensions and robust performance from its gaming division.
The Japanese tech and entertainment giant now estimates the financial blow from U.S. tariffs at 70 billion yen, significantly lower than its May projection of 100 billion yen. The revised figure reflects tariff rates as of August 1, though Sony cautioned that the geopolitical environment remains unpredictable.
This adjustment mirrors a broader trend among Japanese multinationals, with firms like Honda Motor also reporting a reduced tariff hit following a recent trade agreement between Japan and the U.S.
Sony’s gaming division, a key growth engine, delivered standout results in the April-June quarter. Quarterly operating profit from the segment more than doubled to 148 billion yen, driven by higher sales of network services and third-party titles. The company sold 2.5 million PlayStation 5 units during the period, up 4% year-on-year.
The group’s total operating profit surged 36.5% year-on-year to 340 billion yen in the first fiscal quarter, surpassing analyst expectations of 288 billion yen, according to LSEG data. The announcement, made during Japan’s midday trading break, triggered a 5% rally in Sony’s stock.
While the global gaming industry had anticipated a major sales catalyst in Rockstar’s Grand Theft Auto VI, its delay to 2026 has temporarily shifted market dynamics. Nintendo, which recently unveiled its Switch 2 console, is seen as a potential beneficiary of this delay.
Beyond gaming, Sony continues to evolve as a diversified entertainment conglomerate, expanding its presence in music, movies, and smartphone imaging technology. Once renowned for consumer electronics like the iconic Walkman, the company has strategically repositioned itself in high-margin sectors.
In financial services, Sony is preparing to reduce its ownership stake in its finance arm to under 20% via a partial spin-off. The business is set to debut on the Tokyo Stock Exchange on September 29.