Sony Group delivered exceptional first-quarter results with net profit rising 40% year-on-year to ₹2.84 lakh crore ($2 billion), compared to ₹2.18 lakh crore in the same period last year. According to reports from Reuters, the company's revenue increased 8% to ₹22.4 lakh crore ($17.7 billion) during the April-June quarter. The strong performance was driven by solid results across Sony's music, gaming, and imaging businesses, with the company maintaining its record annual profit outlook before the Kumamoto earthquake disrupted operations.
Building on its strong quarterly performance, Sony hiked its full-year earnings forecast by 8% to ₹1.72 lakh crore ($10.70 billion) for the year ending March 2027. As reported by Reuters, the company attributed this rosier outlook to U.S. tariff refunds, favorable exchange rates, and effective cost control measures. The gaming unit's performance was particularly strong, with Sony benefiting from the upcoming launch of Grand Theft Auto VI on November 19, which is expected to sell 30-35 million units by year-end according to Ampere Analysis.
Sony's gaming division continued its strong performance with 1.6 million PlayStation 5 consoles sold during the quarter, though this represented a third fewer units than the same period a year earlier. According to Reuters, the company is positioned as a major beneficiary of the Grand Theft Auto VI launch, while other major titles including God of War Laufey scheduled for February release will further strengthen the gaming portfolio. Sony's shares pared losses to trade flat in Tokyo following the earnings announcement, reflecting investor confidence in the gaming business momentum.
Addressing market concerns about memory chip costs, Sony reiterated that it has secured sufficient memory chip supply for the current financial year and expects hardware profitability to remain similar to FY25 levels. As reported by Reuters, the company emphasized there is no change to its plan for hardware profitability despite the challenging environment facing tech firms like Apple and Samsung Electronics due to AI and soaring memory chip costs. This supply security provides crucial stability for Sony's gaming and imaging businesses that rely heavily on memory components.
In a significant strategic move, Sony announced it has received an acquisition proposal from camera lens maker Tamron and established a committee to review its options. According to Reuters, this potential acquisition would strengthen Sony's position as a leading manufacturer of cameras and image sensors, while Tamron currently supplies lenses for Sony and rival brands. Following the earnings announcement, Sony shares traded little changed in Tokyo as investors weighed the company's strong quarterly performance against the ongoing uncertainty surrounding the Kumamoto earthquake's potential financial impact.
