Sony said on Wednesday it expects operating profit to rise a modest 0.3% to 1.28 trillion yen ($8.7 billion) for the financial year ending March 2026, factoring in a 100 billion yen ($680 million) hit from U.S. tariffs imposed under President Donald Trump’s ongoing trade war.
The profit guidance does not yet reflect the potential easing effects of this week’s U.S.-China trade deal, and executives noted that the final tariff impact could vary significantly depending on trade policy developments.
Despite the caution, Sony’s shares rose 3.7%, buoyed by solid results and the announcement of a 250 billion yen ($1.7 billion) share buyback program.
🧾 Key Financial Highlights
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FY2025 profit forecast: 1.28 trillion yen (+0.3% YoY), factoring in tariff impact
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FY2024 actual profit (incl. financial services): 1.4 trillion yen (+16% YoY)
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Buyback plan: 100 million shares, worth up to 250 billion yen
💼 Strategy & Structural Changes
Sony, once best known for its electronics, is doubling down on entertainment under new CEO Hiroki Totoki, who took the helm in April:
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Preparing a partial spin-off of Sony Financial Holdings, leaving Sony with <20% stake
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Scheduled listing of the financial unit in Tokyo on September 29
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Focus on entertainment resilience, citing performance during COVID-19
“We have seen the resilience of entertainment businesses during economic downturns,” said Totoki.
🎮 Gaming & PS5 Outlook
Sony’s gaming business saw a 12.5% drop in operating profit, with PlayStation 5 (PS5) sales falling 38% YoY in Q1 to 2.8 million units.
Despite this, Sony expects 16% profit growth in gaming this year, driven by:
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Increased first-party game sales
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Expected 15 million PS5 units sold in FY2025
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Launch of “Ghost of Yotei” in October
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Anticipation for “Grand Theft Auto VI”, though its release was delayed to 2026
CFO Lin Tao emphasized flexibility in PS5 shipments, citing “many uncertainties.”
Sony also:
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Raised PS5 prices in Europe and UK due to inflation and FX fluctuations
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Stockpiled inventory in the U.S. ahead of potential trade disruptions
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Diversified hardware production to offset geographic risks
📉 External Challenges
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Tariff impact adds a 100B yen drag on forecast
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Trade uncertainty and currency volatility pose ongoing risk
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Competition with Nintendo’s Switch 2, launching June 5 with a 15M unit sales target
With the tariff situation in flux, Sony’s balanced approach — doubling down on entertainment, gaming IP, and hardware flexibility — may be key to navigating what could be a volatile fiscal year.