Sony (NYSE:SONY – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.38 by $0.11, reports. The firm had revenue of $21.77 billion for the quarter, compared to analyst estimates of $20.15 billion. Sony had a negative net margin of 2.00% and a positive return on equity of 13.06%. The company’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $60.10 EPS.
Here are the key takeaways from Sony’s conference call:
- Sony reported record second-quarter sales of ¥3.43 trillion and operating income of ¥622.3 billion, up 10% and 45% year over year, respectively. It raised its fiscal 2026 forecasts to ¥13 trillion in sales, ¥1.87 trillion in operating income and ¥1.33 trillion in net income.
- Gaming delivered record second-quarter operating income of ¥220.1 billion, while PlayStation monthly active users reached a September record of 127 million and quarterly playtime rose 4%. Sony raised its full-year gaming forecast, citing stronger third-party software and engagement; it expects hardware unit sales to decline gradually as the PS5 cycle matures.
- Music achieved record second-quarter operating income, supported by streaming growth despite the absence of a major film-related hit from the prior-year quarter. Sony highlighted strong catalog consumption and the long-term value of its music assets.
- The picture business posted record second-quarter operating income and Sony raised its full-year forecast, citing stronger theatrical revenue and the success of “Spider-Man: Brand New Day.” The company also described plans to expand Crunchyroll’s anime offerings and connect anime discovery with PlayStation.
- Image-sensor sales fell 6% year over year amid weakness in the smartphone market, and Sony expects to record about ¥16 billion in losses related to earthquake damage and production downtime at its Kumamoto facility. Management also flagged uncertainty around memory costs, end-market demand and customer sourcing, though it raised the segment’s operating-income forecast.
Sony Stock Down 2.1%
NYSE:SONY traded down $0.57 during trading hours on Friday, reaching $26.97. The company’s stock had a trading volume of 5,676,241 shares, compared to its average volume of 4,118,186. The company has a market cap of $159.34 billion, a price-to-earnings ratio of 24.08, a price-to-earnings-growth ratio of 1.66 and a beta of 0.98. Sony has a one year low of $19.32 and a one year high of $30.34. The business’s 50-day moving average is $24.49 and its 200-day moving average is $22.39. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.25 and a quick ratio of 0.97.
More Sony News
Here are the key news stories impacting Sony this week:
- Positive Sentiment: Sony raised its fiscal 2026 outlook after second-quarter profit rose about 45%. Earnings of $0.49 per share beat the $0.38 consensus, while revenue of $21.77 billion exceeded estimates of $20.15 billion. Stronger PlayStation and Pictures results, including the success of Spider-Man: Brand New Day, drove growth. Reuters earnings report Zacks earnings call highlights
- Neutral Sentiment: PlayStation game sales and engagement are growing, but reports say Sony is still struggling to meet demand for PS5 consoles. That may limit the benefit of strong software performance. PS5 sales and supply report
- Negative Sentiment: Management cited rising memory costs and weaker smartphone image-sensor demand as pressures on the outlook. These headwinds could temper gains from gaming and entertainment. Zacks earnings call highlights
Analyst Upgrades and Downgrades
SONY has been the topic of a number of research reports. Zacks Research downgraded shares of Sony from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 30th. Sanford C. Bernstein reissued a “market perform” rating and set a $26.00 price objective on shares of Sony in a research report on Thursday. Benchmark restated a “buy” rating on shares of Sony in a research note on Monday, August 3rd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Sony in a research report on Monday, August 17th. Finally, Wall Street Zen downgraded Sony from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $26.00.
View Our Latest Report on SONY
Insider Buying and Selling
In other Sony news, insider Kenji Tanaka sold 20,000 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $23.83, for a total transaction of $476,600.00. Following the transaction, the insider directly owned 43,899 shares in the company, valued at $1,046,113.17. This trade represents a 31.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 7.00% of the stock is owned by insiders.
About Sony
Sony Group Corporation is a Japan-based global entertainment and technology company, founded in Tokyo in 1946 by Masaru Ibuka and Akio Morita. Initially known as Tokyo Tsushin Kogyo, the company adopted the name Sony in 1958.
Sony’s businesses include video games and network services through PlayStation; music recording and publishing; film and television production and distribution; consumer electronics, including televisions and cameras; and imaging and sensing technologies, including image sensors.
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