Sony reported stronger-than-expected earnings for the December quarter, with operating profit rising 22 percent year on year, supported by favourable foreign exchange movements despite higher memory chip costs.
The Japanese technology and entertainment group posted operating profit of 515 billion yen, beating analyst expectations of 468.9 billion yen. Revenue came in at 3.71 trillion yen, slightly above forecasts and up 1 percent from a year earlier.
The results marked a rebound from a year-on-year profit decline in the previous quarter.
Following the earnings release, Sony raised its full-year outlook. The company now expects operating profit of 1.54 trillion yen, an increase of 110 billion yen, or 8 percent, from its previous forecast.
Sony also lifted its annual revenue projection by 300 billion yen to 12.3 trillion yen, while maintaining its estimate of 50 billion yen in losses linked to US tariffs.
Sony shares initially rose more than 5 percent after the announcement before reversing course. The stock was down 0.87 percent in afternoon trading in Tokyo.
Gaming Revenue Slips as Hardware Sales Slow
Sales in Sony’s game and network services division, which includes the PlayStation business and is the company’s largest revenue contributor, declined during the quarter.
The division posted revenue of 1.613 trillion yen, down 68.7 billion yen from a year earlier, as console hardware sales softened. While digital game purchases and growth in the PlayStation Plus subscription service provided support, hardware shipment growth remained subdued.
Sony’s hardware business is expected to face further pressure from rising component costs, particularly memory chips.
PlayStation consoles rely on dynamic random access memory (DRAM) chips, which are currently in short supply due to strong demand from artificial intelligence and data centre operators. According to market researcher TrendForce, contract prices for conventional DRAM chips are projected to rise 90 to 95 percent in the current quarter compared with the previous three months.
Industry executives have warned that the global memory chip shortage could persist until 2027.
Music and Imaging Units Provide Support
Stronger performances in other divisions helped offset pressure in the gaming segment.
Sony’s music business recorded revenue growth of 12.6 percent in the December quarter, driven by higher income from live events, merchandising and streaming services.
Meanwhile, the company’s imaging and sensing solutions unit saw revenue growth of more than 20 percent, reflecting demand for its semiconductor-based imaging and sensing technologies.
