Sony Group Boosts Fiscal Year Profit Forecast to ¥1.43 Trillion, Driven by Music & Semiconductors
Sony Group Corporation (6758:JP) announced a revised operating profit forecast of ¥1.43 trillion for the fiscal year ending March 2026, exceeding the Bloomberg-compiled consensus estimate of ¥1.423 trillion from 22 analysts. The increase is attributed to strong performance in both the semiconductor and music sectors, alongside a reduced anticipated tariff impact.
A notable contributor to the music business’s success is the global performance of “Demon Slayer: Kimetsu no Yaiba the Movie: Mugenjou Chapter 1: The Return of Akaza,” produced with affiliated company Aniplex. As of October 17th,the film has generated worldwide box office revenue of $654 million (approximately ¥94.8 billion).
The company has also adjusted its currency exchange rate assumptions to approximately ¥145 to the US dollar (previously ¥143) and ¥164 to the Euro (previously ¥157). Alongside the profit revision, Sony announced a treasury stock repurchase program authorizing up to 35 million shares (0.59% of outstanding shares excluding treasury stock) with a maximum value of ¥100 billion.
Sony Group is increasingly focused on its entertainment businesses, with games, music, and movies now representing roughly 70% of the projected operating profit for the current fiscal year. This focus has been further solidified by the recent public listing of Sony Financial Group in late September.
The game business continues to benefit from a growing playstation 5 user base five years after its launch, with stable growth expected in the platform business, aided by favorable exchange rates.
Morningstar Director Kazunori Ito commented positively on the results, stating the company deserves “an honest positive evaluation” due to its strong financial performance. He highlighted the growing importance of acquired music and anime content as a core pillar supporting the entire group. Regarding semiconductors, Sony noted strong performance from image sensors used in new iPhone models, stating they will “keep an eye on the sustainability of this momentum.”
Following the proclamation, Sony Group shares rose 6.7% in afternoon trading on the Tokyo market, reaching ¥4,569 – the highest intraday increase sence October 6th.
(Interview cooperation: Takashi Mochizuki)
