TLDR
- Sony stock up 4.55% to $26.06 after Q1 results beat expectations
- Consolidated operating income up 36% to $2.3 billion
- PlayStation and music segments posted double-digit growth
- Sony Pictures’ income jumped 76% on TV content strength
- US tariffs expected to cut FY2025 income by $474M, down from $690M
Sony Group Corporation (NYSE: SONY) reported its fiscal Q1 2025 results for the quarter ended June 30.
Shares rose 4.55% to $26.06 after the company posted strong operating results and lifted its profit forecast. Consolidated operating income rose 36% year-on-year to $2.3 billion, and sales from continuing operations were up 2% to $17.77 billion.
Sony profit rises 36% on games, semiconductor businesses https://t.co/eFBBRMATOz
— Nikkei Asia (@NikkeiAsia) August 7, 2025
Sony Pictures Benefits from TV Output Surge
Sony Pictures posted a 76% jump in operating income to $129 million, driven by increased deliveries in its television production unit. Overall sales rose 4% to $2.22 billion despite a 3% drop in yen terms due to currency headwinds. Motion Pictures revenue declined 13% year-on-year to $742 million, largely due to a lighter theatrical slate. However, library titles contributed positively, softening the impact. Notably, Sony’s “K-Pop: Demon Hunters” became the most-watched Netflix original animated film, while “28 Years Later” crossed $150 million globally.
Gaming Powers Growth
Sony’s Game & Network Services segment posted 8% sales growth to $6.34 billion. Operating income more than doubled to $1 billion, led by increased third-party software sales and strong PlayStation Network performance. Monthly active users and total gameplay hours both rose 6% year-over-year. A sequel to Ghost of Tsushima, titled Ghost of Yōtei, is set to launch in October.
Music Segment Delivers Reliable Expansion
Sony Music saw steady gains, with revenue up 13% to $3.2 billion and operating income up 16% to $642 million. Streaming revenue grew 7% for recorded music and 8% for music publishing in U.S. dollar terms. Growth in mobile content and the consolidation of ticketing firm eplus Inc. also contributed.
Mixed Results in Other Segments
Imaging & Sensing Solutions posted a 15% sales increase to $2.77 billion and 48% growth in operating income to $367 million. ET&S, which includes consumer electronics, fell short with an 11% drop in sales to $3.62 billion and a 33% decline in operating income to $300 million, mainly due to weak TV sales.
Outlook Raised Despite Tariff Risk
Sony raised its full-year operating income forecast to $9.01 billion, citing broad-based strength and a reduced expected impact from U.S. tariffs, now projected at $474 million. Total FY2025 sales guidance remains unchanged at $79.32 billion. CFO Lin Tao said the company had nearly completed production diversification and built strategic inventories to mitigate trade risks.
Hit Anime and IP Strategy Fuel Optimism
Anime continues to play a key role in Sony’s profitability. Demon Slayer: Infinity Castle drew 12.6 million viewers and earned $119.3 million in Japan. Aniplex’s Fate/Grand Order also remains a top performer in mobile gaming. Sony’s pivot to IP-driven content now accounts for about 60% of total revenue.
