Sony Group announced its fiscal 2025 financial report (ending March 2026) with net profit falling 3.4% year-on-year to 1.03 trillion yen (about $8.7 billion). The figure came in below analysts' earlier forecasts, pressured by challenges in the image sensor business and entertainment segment.
According to the official announcement, the group's revenue rose slightly 1.2% to 13.2 trillion yen during the period, but higher costs and squeezed profit margins in several key areas weighed on the bottom line. Specifically, the image sensor segment — a core pillar for Sony — saw revenue slip as demand from smartphone makers declined. Meanwhile, the entertainment segment (including music, film, and video games) grew but not enough to offset the weakness.
Chief Financial Officer Hiroki Totoki said in a press conference that the company is focusing on cost-cutting measures and portfolio optimization to improve profitability in the next fiscal year. He also stressed that Sony expects net profit to recover to 1.1 trillion yen in fiscal 2026, driven by growth in online entertainment services and expansion into the automotive sensor market for electric vehicles.
The results nudged Sony's shares down 1.5% in Tokyo trading, though they remain higher than at the start of the year. Analysts assess that despite the profit decline, Sony remains one of Japan's leading consumer technology companies with long-term growth potential.
