Sony, the Japanese technology and entertainment giant, reported an 18% increase in profit for the fiscal year ending in March, driven by strong performances in its music and video game divisions. The company’s CEO, Hiroki Totoki, highlighted the importance of collaboration across Sony’s various segments, such as animation and music, to achieve its goal of “kando” — the emotional connection at the heart of its vision.
Totoki outlined the company’s strategy for future growth, emphasizing the importance of leveraging its diverse content, including upcoming films like the latest Spider-Man movies and a Beatles biopic, as well as the popular anime streaming service, Crunchyroll. He also stressed that Sony’s corporate strategies will focus on continuing the momentum achieved so far while working toward realizing its long-term Creative Entertainment Vision.
Sony reported a record annual profit of 1.14 trillion yen ($7.8 billion), up from 970.6 billion yen ($6.6 billion) in the previous year. However, annual sales remained largely unchanged, dropping slightly to 12.957 trillion yen ($88 billion) from 13.020 trillion yen. Although its financial division saw stalled revenue, Sony’s film and imaging solutions divisions performed well.
Despite challenges posed by U.S. tariffs, Sony officials have stated that the company plans to limit the impact of President Trump’s trade policies, expecting a negative effect on just 10% of its operating profit for the coming fiscal year. Measures to mitigate these impacts include adjusting shipping allocations.
Totoki also noted that Sony will continue to utilize its technological advancements, like virtual reality and image sensors, to enhance its entertainment offerings and immersive experiences. Sony’s collaborations with companies like Kadokawa, a publishing and film studio, and Bandai Namco, a video game producer, remain key to its growth strategy. The company is also committed to fostering a diverse workforce to unlock the creative potential of its employees.
In terms of entertainment, Sony enjoyed box office successes with films like Venom: The Last Dance and Bad Boys: Ride or Die, both of which performed well globally. Sony’s gaming division, known for the PlayStation console, also posted positive results, as did its music division, which saw notable successes with top-selling albums by artists such as SZA, Beyonce, and Travis Scott. In Japan, Kenshi Yonezu’s Lost Corner was a major hit.
For the January-March quarter, Sony reported a profit of 197.7 billion yen ($1.3 billion), a 5% increase from the previous year’s 189 billion yen. However, sales for this quarter decreased by 24%, falling to 2.6 trillion yen ($17.7 billion) from 3.48 trillion yen.
Looking ahead, Sony forecasts a nearly 13% drop in profit for the fiscal year ending March 2026, predicting 930 billion yen ($6.3 billion) in profit, on sales of 11.7 trillion yen ($80 billion), a 2.9% decrease year-on-year.
Despite a drop in stock price earlier in the day, Sony’s shares ended the trading session up by 3.7% after the company announced its financial results.
