Sony Group Corporation delivered a record first-quarter performance, with operating income soaring 36% to ¥340 billion ($2.35 billion) despite modest revenue growth. The Japanese entertainment and technology conglomerate’s results were powered by exceptional growth in its PlayStation gaming division, which more than doubled its operating profit.
Sales from continuing operations rose 2% to ¥2.62 trillion ($18.1 billion) for the three months ended June 30, with the company benefiting from strong demand for third-party game software and network services. Net income attributable to shareholders climbed 23% to ¥259 billion ($1.79 billion).
The standout performer was Sony’s Game & Network Services segment, where sales jumped 8% to ¥936.5 billion while operating income surged 127% to ¥148 billion, setting a new quarterly record. Monthly active users across PlayStation reached 123 million in June, up 6% year-over-year, reflecting sustained engagement with the platform.
Sony raised its full-year operating income forecast by 4% to ¥1.33 trillion ($9.2 billion) after the strong quarterly showing. The revision came despite ongoing challenges from U.S. trade tensions, with the company reducing its estimated tariff impact to ¥70 billion from a previously projected ¥100 billion.
The Music segment contributed steady growth with sales rising 5% to ¥465.3 billion and operating income gaining 8% to ¥92.8 billion. Streaming revenues continued their upward trajectory, with recorded music streaming growing 7% and music publishing streaming advancing 8% on a dollar basis.
Sony’s Imaging & Sensing Solutions business demonstrated resilience, posting sales growth of 15% to ¥408.2 billion and a 48% increase in operating income to ¥54.3 billion, driven by steady demand for mobile phone sensors and digital camera components.
However, the Entertainment, Technology & Services division faced headwinds, with sales declining 11% to ¥534.3 billion and operating income falling 33% to ¥43.1 billion. The segment was hurt by weaker television sales as competitors engaged in more aggressive pricing strategies than Sony had anticipated.
The company is preparing for a significant corporate restructuring, planning to spin off its financial services subsidiary Sony Financial Group Inc. in October. The listing is scheduled for September 29, 2025, with SFGI planning to repurchase up to 1 billion shares worth ¥100 billion maximum.
While Sony’s diversified portfolio provided overall strength, the results highlighted the company’s increasing reliance on digital entertainment and gaming revenues as traditional electronics face competitive pressures.
