Sony Lifts Profit Outlook After Blockbuster Games And Anime Quarter

• Sony raised its full-year operating income view by 8% to 1.43 trillion yen ($9.3 billion).
• The Tokyo-headquartered conglomerate said strong entertainment business sales and lower-than-expected impact from U.S. tariffs were behind the revised outlook.
• Sony shares rose by more than 5% in Tokyo.

Sony Group Corp. on Tuesday raised its profit outlook for the year after reporting upbeat quarterly results, boosting its shares and Stocktwits sentiment.

The Japanese tech and media conglomerate bumped its operating income forecast for the year through March by 8% to 1.43 trillion yen ($9.3 billion), citing a smaller-than-expected impact from U.S. tariffs and the strength of its entertainment and chips businesses.

Sony also announced a new 100 billion yen share buyback.

In the second quarter, sales increased 5% to 3.11 trillion yen and operating income rose 10% to 429 billion yen. Sales at the company’s game and network services unit, its largest, rose 42%. 

Sony shares jumped 5.5% on the Tokyo Stock Exchange. On Stocktwits, the retail sentiment for the company’s U.S.-listed stock (SONY) shifted to ‘bullish’ as of early Tuesday U.S. time, from ‘bearish’ the previous day, with users praising the strong report.

Fellow Japanese tech company Nintendo also raised its annual profit view, driven by the record sales of its latest Switch 2 gaming console.

Sony said its performance and outlook were supported by blockbuster movies like “Demon Slayer: Kimetsu no Yaiba Infinity Castle.” Revenue in the music segment, which houses anime content, rose 83%.

The PlayStation maker sold 3.9 million units of its flagship PS5 console, surpassing the number it had sold in the same period a year earlier. However, the number of active PlayStation users decreased to 119 million, compared to 123 million in the first quarter and 116 million in the second quarter last year.

A consumer tech powerhouse, Sony has in recent years refashioned itself as a global producer and publisher of entertainment spanning all genres and categories.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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