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SONY's Q1 Earnings & Revenues Up Y/Y, View Lifted on Softer Tariff Hit
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Key Takeaways
SONY's Q1 net income rose to 259B yen, with revenue up 2% on gaming and image sensor segment growth.
Sony will spin off its Financial Services unit in October 2025, shifting it to equity method reporting.
Q1 operating income jumped 36.5% to 340B yen, with gaming income more than doubling year over year.
Sony Group Corporation ((SONY - Free Report) ) reported first-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥42.84, up from ¥34.37 in the year-ago quarter. Adjusted net income came in at ¥259 billion compared with ¥210.2 billion in the prior-year quarter.
Quarterly total revenues grew 2% year over year to ¥2,621.6 billion, driven by higher revenues in the Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment.
Sony plans to partially spin off its Financial Services business (SFGI) in October 2025. Starting from this quarter, the Financial Services segment is classified as a discontinued operation, separated from continuing operations in line with IFRS standards. After the spin-off in the second half, Sony will apply the equity method to SFGI and recognize gains or losses under operating income. This marks a shift from the previous disclosure format (fiscal 2024), where Financial Services were included as a consolidated segment.
Following the announcement, Sony’s shares gained 4.6% in the pre-market trading on August 7, 2025. In the past year, the stock has gained 47.5% compared with the Audio Video Production industry’s rise of 41.6%.
Image Source: Zacks Investment Research
Segmental Results
In the quarter under review, G&NS sales were up 8% year over year to ¥936.5 billion. The uptick was fueled by higher sales from network services and rising sales of non-first-party titles amid forex headwinds. Operating income rose to ¥148 billion from ¥65.2 billion in the prior-year quarter.
Music sales increased 5% year over year to ¥465.3 billion in the first fiscal quarter, driven by higher revenues from streaming services in Recorded Music and Music Publishing, as well as mobile game applications in Visual Media & Platform. The positive effect of integrating ePlus Inc. into Visual Media & Platform, offsetting unfavorable forex movements, supported the growth. Operating income rose to ¥92.8 billion from ¥85.9 billion in the same quarter last year.
Pictures segment declined 3% year over year to ¥327.1 billion. Though on a U.S. dollar basis, sales rose 4%. The increase was driven by higher series deliveries in Television Productions but was offset by lower revenues from theatrical releases and a drop in catalog licensing income within the Television unit. Operating income was ¥18.7 billion compared with ¥11.3 billion a year ago.
ET&S sales totaled ¥534.3 billion, down 11% year over year. The downside resulted from a fall in unit sales of displays and an unfavorable foreign exchange impact of ¥25.1 billion. Both volume and forex woes weighed heavily on segment performance. Operating income was ¥43.1 billion compared with ¥64.1 billion in the year-ago quarter.
Sony Corporation Price, Consensus and EPS Surprise
I&SS sales increased 15% year over year to ¥408.2 billion, despite a negative foreign exchange impact of ¥21.2 billion. The growth was driven by higher sales of image sensors for mobile devices, supported by an increase in unit sales and a stronger product mix, along with a rise in image sensor sales for digital cameras. Operating income totaled ¥54.3 billion compared with ¥36.6 billion in the year-ago quarter.
All Other sales were down 8.5% to ¥19.3 billion in the fiscal first quarter. Operating loss was ¥5 billion against income of ¥1.3 billion in the year-ago quarter.
Other Details
For the quarter under review, total costs and expenses were ¥2,279.9 billion, down 1.6% year over year. Operating income was ¥340 billion, representing a 36.5% increase.
Cash Flow & Liquidity
For the fiscal first quarter, Sony generated ¥77.3 billion of cash from operating activities against usage of ¥126.3 billion in the prior-year quarter.
As of June 30, 2025, the company had ¥1,600 billion in cash and cash equivalents with ¥1,350 billion of long-term debt.
Fiscal 2025 Forecast Upgraded
Sony has provided its outlook for the fiscal year ending March 31, 2026. The situation regarding the additional U.S. tariffs remains uncertain, and Sony will continue to closely monitor developments and take steps to reduce their impact. The estimated effect on operating income has been revised downward to approximately ¥70 billion, which is ¥30 billion less than the previous estimate.
Considering the potential impact of the tariffs, it now projects an operating income of ¥1,330 billion compared with ¥1,400 billion without the tariff impact. Earlier, management estimated operating income of ¥1,280 billion compared with ¥1,380 billion without the tariff impact.
Net income is now estimated to be ¥970 billion, down 9% year over year compared with the prior view of ¥930 billion, down 13%.
It continues to expect sales of ¥11,700 billion, down 3% year over year.
Dolby Laboratories, Inc. ((DLB - Free Report) ) reported third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 78 cents, surpassing the Zacks Consensus Estimate by 8.3%. It reported 71 cents in the prior-year quarter. Total revenues were $315.6 million, up from $288.8 million in the year-ago quarter and surpassing the Zacks Consensus Estimate by 3.9%. This uptick was driven by higher revenues in the Licensing segment and the Product and Services segment.
In the past six months, shares have lost 14.4%.
IMAX Corporation ((IMAX - Free Report) ) reported second-quarter 2025 adjusted earnings of 26 cents per share, which beat the Zacks Consensus Estimate by 36.84% and increased 44.4% year over year. Total revenues of $91.7 million beat the Zacks Consensus Estimate by 0.62% and increased 3.1% year over year.
In the past, shares of IMAX have gained 21.2%
Comcast ((CMCSA - Free Report) ) reported second-quarter 2025 adjusted earnings of $1.25 per share, which beat the Zacks Consensus Estimate by 6.84% and increased 3.3% year over year. Consolidated revenues increased 2.1% year over year to $30.31 billion. The figure beat the Zacks Consensus Estimate by 1.6%.
Shares of CMCSA have lost 18.3% in the past year.
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SONY's Q1 Earnings & Revenues Up Y/Y, View Lifted on Softer Tariff Hit
Key Takeaways
Sony Group Corporation ((SONY - Free Report) ) reported first-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥42.84, up from ¥34.37 in the year-ago quarter. Adjusted net income came in at ¥259 billion compared with ¥210.2 billion in the prior-year quarter.
Quarterly total revenues grew 2% year over year to ¥2,621.6 billion, driven by higher revenues in the Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment.
Sony plans to partially spin off its Financial Services business (SFGI) in October 2025. Starting from this quarter, the Financial Services segment is classified as a discontinued operation, separated from continuing operations in line with IFRS standards. After the spin-off in the second half, Sony will apply the equity method to SFGI and recognize gains or losses under operating income. This marks a shift from the previous disclosure format (fiscal 2024), where Financial Services were included as a consolidated segment.
Following the announcement, Sony’s shares gained 4.6% in the pre-market trading on August 7, 2025. In the past year, the stock has gained 47.5% compared with the Audio Video Production industry’s rise of 41.6%.
Image Source: Zacks Investment Research
Segmental Results
In the quarter under review, G&NS sales were up 8% year over year to ¥936.5 billion. The uptick was fueled by higher sales from network services and rising sales of non-first-party titles amid forex headwinds. Operating income rose to ¥148 billion from ¥65.2 billion in the prior-year quarter.
Music sales increased 5% year over year to ¥465.3 billion in the first fiscal quarter, driven by higher revenues from streaming services in Recorded Music and Music Publishing, as well as mobile game applications in Visual Media & Platform. The positive effect of integrating ePlus Inc. into Visual Media & Platform, offsetting unfavorable forex movements, supported the growth. Operating income rose to ¥92.8 billion from ¥85.9 billion in the same quarter last year.
Pictures segment declined 3% year over year to ¥327.1 billion. Though on a U.S. dollar basis, sales rose 4%. The increase was driven by higher series deliveries in Television Productions but was offset by lower revenues from theatrical releases and a drop in catalog licensing income within the Television unit. Operating income was ¥18.7 billion compared with ¥11.3 billion a year ago.
ET&S sales totaled ¥534.3 billion, down 11% year over year. The downside resulted from a fall in unit sales of displays and an unfavorable foreign exchange impact of ¥25.1 billion. Both volume and forex woes weighed heavily on segment performance. Operating income was ¥43.1 billion compared with ¥64.1 billion in the year-ago quarter.
Sony Corporation Price, Consensus and EPS Surprise
Sony Corporation price-consensus-eps-surprise-chart | Sony Corporation Quote
I&SS sales increased 15% year over year to ¥408.2 billion, despite a negative foreign exchange impact of ¥21.2 billion. The growth was driven by higher sales of image sensors for mobile devices, supported by an increase in unit sales and a stronger product mix, along with a rise in image sensor sales for digital cameras. Operating income totaled ¥54.3 billion compared with ¥36.6 billion in the year-ago quarter.
All Other sales were down 8.5% to ¥19.3 billion in the fiscal first quarter. Operating loss was ¥5 billion against income of ¥1.3 billion in the year-ago quarter.
Other Details
For the quarter under review, total costs and expenses were ¥2,279.9 billion, down 1.6% year over year. Operating income was ¥340 billion, representing a 36.5% increase.
Cash Flow & Liquidity
For the fiscal first quarter, Sony generated ¥77.3 billion of cash from operating activities against usage of ¥126.3 billion in the prior-year quarter.
As of June 30, 2025, the company had ¥1,600 billion in cash and cash equivalents with ¥1,350 billion of long-term debt.
Fiscal 2025 Forecast Upgraded
Sony has provided its outlook for the fiscal year ending March 31, 2026. The situation regarding the additional U.S. tariffs remains uncertain, and Sony will continue to closely monitor developments and take steps to reduce their impact. The estimated effect on operating income has been revised downward to approximately ¥70 billion, which is ¥30 billion less than the previous estimate.
Considering the potential impact of the tariffs, it now projects an operating income of ¥1,330 billion compared with ¥1,400 billion without the tariff impact. Earlier, management estimated operating income of ¥1,280 billion compared with ¥1,380 billion without the tariff impact.
Net income is now estimated to be ¥970 billion, down 9% year over year compared with the prior view of ¥930 billion, down 13%.
It continues to expect sales of ¥11,700 billion, down 3% year over year.
SONY’s Zacks Rank
Sony currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Recent Performance of Other Companies
Dolby Laboratories, Inc. ((DLB - Free Report) ) reported third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 78 cents, surpassing the Zacks Consensus Estimate by 8.3%. It reported 71 cents in the prior-year quarter. Total revenues were $315.6 million, up from $288.8 million in the year-ago quarter and surpassing the Zacks Consensus Estimate by 3.9%. This uptick was driven by higher revenues in the Licensing segment and the Product and Services segment.
In the past six months, shares have lost 14.4%.
IMAX Corporation ((IMAX - Free Report) ) reported second-quarter 2025 adjusted earnings of 26 cents per share, which beat the Zacks Consensus Estimate by 36.84% and increased 44.4% year over year. Total revenues of $91.7 million beat the Zacks Consensus Estimate by 0.62% and increased 3.1% year over year.
In the past, shares of IMAX have gained 21.2%
Comcast ((CMCSA - Free Report) ) reported second-quarter 2025 adjusted earnings of $1.25 per share, which beat the Zacks Consensus Estimate by 6.84% and increased 3.3% year over year. Consolidated revenues increased 2.1% year over year to $30.31 billion. The figure beat the Zacks Consensus Estimate by 1.6%.
Shares of CMCSA have lost 18.3% in the past year.