Sony lifted its full-year profit outlook after stronger gaming performance and resilient high-margin content businesses drove first-quarter results well above market expectations.
Sony Group raised its earnings outlook for the fiscal year ending March 2027 after first-quarter profit climbed sharply and core businesses outperformed initial expectations. The company now expects net profit under IFRS to reach a record ¥1.21 trillion, up 17% from the previous year and ¥50 billion above its prior forecast, with the upgrade driven mainly by stronger gaming performance. Revenue is projected at ¥12.5 trillion, up ¥200 billion from the earlier outlook, while operating profit is expected to rise 19% to ¥1.72 trillion, an increase of ¥120 billion. For the April-June 2026 quarter, revenue rose 8% from a year earlier to ¥2.84 trillion, net profit increased 32% to ¥342.1 billion, and operating profit reached ¥476.5 billion. The operating result was about 34% above the Bloomberg-surveyed analyst forecast of ¥355.6 billion. Sony said the gaming segment was the main factor behind the upgraded annual outlook, with that business raised by ¥60 billion from the May forecast due to a U.S. tariff refund and favorable currency movements. The company also cited the continued solid performance of high-margin content businesses, including gaming, music, image sensors and entertainment content. Sony kept its annual dividend forecast unchanged at ¥35 per share, above the market consensus of ¥33.08. While the revised net profit forecast was just below the QUICK Consensus estimate of ¥1.221 trillion and the revenue outlook remained below analyst consensus of about ¥12.71 trillion, the results underscored Sony's ability to expand profits faster than sales through product mix, cost management and stronger margins.