Sony Reports Record Profit, Warns of Tariff Impact on Future Earnings
Sony Group Corporation announced a record annual net profit of ¥1.14 trillion ($7.8 billion) for the fiscal year ending March 2025, marking an 18% increase from the previous year. According to AP News, this growth was driven by strong performances in the company's music, movie, and gaming divisions.
 |
| Image Credit: Sony |
CEO Hiroki Totoki emphasized the importance of collaboration across Sony’s various segments to achieve the company's long-term "Creative Entertainment Vision," focusing on delivering emotional engagement through content.
Despite the strong financial results, Sony warned that U.S. tariffs could negatively impact its future earnings. The company anticipates a ¥100 billion ($700 million) hit to its operating profit in the coming fiscal year due to these tariffs, as per the Bloomberg reports.
To mitigate the impact, Sony is considering various strategies, including adjusting the allocation of shipments and potentially manufacturing the PlayStation 5 in the U.S. The company has also stockpiled PS5 units in the U.S. to cover approximately three months of sales.
Sony's CFO Lin Tao stated that the company expects to incur additional costs of approximately ¥100 billion as a result of the tariffs and is evaluating potential price adjustments for the PS5 console.
Here's how Sony’s fiscal year performance looks like:
| Metric | FY 2024-25 (Actual) | FY 2025-26 (Forecast) | Tariff Impact Estimate |
|---|---|---|---|
| Net Profit | 1.14 trillion yen | 930 billion yen | -100 billion yen |
| Operating Income Forecast | 1.28 trillion yen | Flat (0% growth) | -100 billion yen |
| Tariff Impact on Income | N/A | ~$680 million |
Looking ahead, Sony forecasts a nearly 13% drop in profit for the fiscal year through March 2026, projecting net income of ¥930 billion ($6.3 billion).
Despite these challenges, Sony's stock rose 3.7% following the announcement of its financial results.
