first quarter ended June 30, 2026
Filed Jul 31, 2026Sony reported sales of 2,837,771 yen in millions and operating income of 476,499 yen in millions for the three months ended June 30, 2026, while forecasting full-year sales of 12,500,000 yen in millions and operating income of 1,720,000 yen in millions.
Sales increased 8.2% year on year, operating income increased 40.2%, and net income attributable to Sony Group Corporation’s stockholders from continuing operations increased 32.1%. Profit growth was led by Imaging & Sensing Solutions, Game & Network Services and Music, while the full-year operating-income forecast calls for 18.8% growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three months ended June 30, 2026other | 2,837,771 yen in millions | – | 8.2% |
| Cost of sales, three months ended June 30, 2026other | 1,796,292 yen in millions | – | – |
| Selling, general and administrative, three months ended June 30, 2026other | 568,373 yen in millions | – | – |
| Total costs and expenses, three months ended June 30, 2026other | 2,363,278 yen in millions | – | – |
| Share of profit of investments accounted for using the equity method, three months ended June 30, 2026other | 2,006 yen in millions | – | – |
| Operating income, three months ended June 30, 2026other | 476,499 yen in millions | – | 40.2% |
| Financial income, three months ended June 30, 2026other | 24,464 yen in millions | – | – |
| Financial expenses, three months ended June 30, 2026other | 23,472 yen in millions | – | – |
| Income before income taxes, three months ended June 30, 2026other | 477,491 yen in millions | – | 33.9% |
| Income taxes, three months ended June 30, 2026other | 127,484 yen in millions | – | – |
| Net income from continuing operations, three months ended June 30, 2026other | 350,007 yen in millions | – | 33.2% |
| Net income, three months ended June 30, 2026other | 350,007 yen in millions | – | – |
| Net income attributable to Sony Group Corporation’s stockholders from continuing operations, three months ended June 30, 2026other | 342,161 yen in millions | – | 32.1% |
| Net income attributable to Sony Group Corporation’s stockholders, three months ended June 30, 2026other | 342,161 yen in millions | – | – |
| Basic earnings per share from continuing operations, three months ended June 30, 2026other | 58.07 yen | – | – |
| Diluted earnings per share from continuing operations, three months ended June 30, 2026other | 57.82 yen | – | – |
| Basic earnings per share, three months ended June 30, 2026other | 58.07 yen | – | – |
| Diluted earnings per share, three months ended June 30, 2026other | 57.82 yen | – | – |
| Total comprehensive income from continuing operations, three months ended June 30, 2026other | 447,306 yen in millions | – | 87.6% |
| Comprehensive income, three months ended June 30, 2026other | 447,306 yen in millions | – | – |
| Net cash provided by operating activities, three months ended June 30, 2026other | 197,435 yen in millions | – | – |
| Total net cash provided by operating activities from continuing operations, three months ended June 30, 2026other | 197,435 yen in millions | – | – |
| Net cash used in investing activities, three months ended June 30, 2026other | (176,783) yen in millions | – | – |
| Net cash used in financing activities, three months ended June 30, 2026other | (86,628) yen in millions | – | – |
| Cash and cash equivalents, June 30, 2026other | 2,170,019 yen in millions | – | – |
| Total assets, June 30, 2026other | 16,047,302 yen in millions | – | – |
| Total liabilities, June 30, 2026other | 7,272,364 yen in millions | – | – |
| Total equity, June 30, 2026other | 8,774,938 yen in millions | – | – |
| Equity attributable to Sony Group Corporation’s stockholders, June 30, 2026other | 8,369,259 yen in millions | – | – |
| Ratio of equity attributable to Sony Group Corporation’s stockholders to total assets, June 30, 2026other | 52.2% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Game & Network ServicesSales to customers were 915,846 yen in millions versus 912,810 yen in millions. Total segment sales were 937,123 yen in millions versus 936,533 yen in millions. Operating income was 202,014 yen in millions versus 147,957 yen in millions. Network Services sales were 208,623 yen in millions versus 172,648 yen in millions; Digital Software and Add-on Content sales were 485,218 yen in millions versus 492,147 yen in millions; Hardware and Others sales were 222,005 yen in millions versus 248,015 yen in millions. | 915,846 yen in millions | – | – |
| MusicSales to customers were 557,866 yen in millions versus 458,952 yen in millions. Total segment sales were 562,019 yen in millions versus 465,341 yen in millions. Operating income was 105,882 yen in millions versus 92,807 yen in millions. Recorded Music - Streaming sales were 237,066 yen in millions versus 196,016 yen in millions; Recorded Music - Others sales were 143,885 yen in millions versus 105,473 yen in millions; Music Publishing sales were 116,002 yen in millions versus 98,685 yen in millions; Visual Media and Platform sales were 60,913 yen in millions versus 58,778 yen in millions. | 557,866 yen in millions | – | – |
| PicturesSales to customers were 312,208 yen in millions versus 326,206 yen in millions. Total segment sales were 315,063 yen in millions versus 327,104 yen in millions. Operating income was 24,809 yen in millions versus 18,665 yen in millions. Motion Pictures sales were 102,718 yen in millions versus 107,133 yen in millions; Television Productions sales were 90,916 yen in millions versus 121,627 yen in millions; Media Networks sales were 118,574 yen in millions versus 97,446 yen in millions. | 312,208 yen in millions | – | – |
| Entertainment, Technology & ServicesSales to customers were 534,421 yen in millions versus 518,677 yen in millions. Total segment sales were 543,850 yen in millions versus 534,258 yen in millions. Operating income was 42,601 yen in millions versus 43,143 yen in millions. Imaging sales were 199,652 yen in millions versus 187,299 yen in millions; Sound sales were 65,206 yen in millions versus 65,871 yen in millions; Network Services sales were 48,054 yen in millions versus 45,597 yen in millions; Displays sales were 99,262 yen in millions versus 101,263 yen in millions; Other sales were 122,247 yen in millions versus 118,647 yen in millions. | 534,421 yen in millions | – | – |
| Imaging & Sensing SolutionsSales to customers were 492,845 yen in millions versus 385,464 yen in millions. Total segment sales were 512,738 yen in millions versus 408,190 yen in millions. Operating income was 122,203 yen in millions versus 54,251 yen in millions. | 492,845 yen in millions | – | – |
| All OtherSales to customers were 19,878 yen in millions versus 16,239 yen in millions. Total segment sales were 22,112 yen in millions versus 19,330 yen in millions. Operating loss was (13,261) yen in millions versus (4,968) yen in millions. | 19,878 yen in millions | – | – |
Fiscal year ending March 31, 2027 outlook
- Revenue12,500,000 yen in millions, 0.2%
- NoteOperating income: 1,720,000 yen in millions, 18.8%
- NoteIncome before income taxes: 1,710,000 yen in millions, 20.2%
- NoteNet income attributable to Sony Group Corporation’s stockholders: 1,210,000 yen in millions, 17.4%
- NoteAnnual dividends per share forecast: second quarter-end 17.50 yen, year-end 17.50 yen, total 35.00 yen
- NoteThe impact of the 2026 Kumamoto Earthquake, which occurred on July 28, 2026, has not been incorporated into the results forecast.
Capital returns
- Dividends declared during the three months ended June 30, 2026: (73,846) yen in millions.
- Payments for purchases of treasury stock during the three months ended June 30, 2026: (127,480) yen in millions.
- Treasury stock was cancelled during the three months ended June 30, 2026: 577,567 yen in millions.
- Payments of dividends during the three months ended June 30, 2026: (73,426) yen in millions.
- Fiscal year ending March 31, 2027 dividend forecast: 35.00 yen total annual dividends per share.
What drove it
- Sales growth was concentrated in Music, where sales to customers were 557,866 yen in millions, and Imaging & Sensing Solutions, where sales to customers were 492,845 yen in millions.
- Imaging & Sensing Solutions operating income was 122,203 yen in millions, compared with 54,251 yen in millions in the prior-year quarter.
- Game & Network Services operating income was 202,014 yen in millions, compared with 147,957 yen in millions, with Network Services sales of 208,623 yen in millions.
- Music growth included Recorded Music - Streaming sales of 237,066 yen in millions and Recorded Music - Others sales of 143,885 yen in millions.
- Exchange differences on translating foreign operations were 81,365 yen in millions, compared with (22,301) yen in millions, contributing to total other comprehensive income, net of tax, of 97,299 yen in millions.
Concerns
- Pictures sales to customers were 312,208 yen in millions versus 326,206 yen in millions, including Television Productions sales of 90,916 yen in millions versus 121,627 yen in millions.
- Entertainment, Technology & Services operating income was 42,601 yen in millions versus 43,143 yen in millions.
- All Other recorded an operating loss of (13,261) yen in millions versus an operating loss of (4,968) yen in millions.
- Net cash provided by operating activities from continuing operations was 197,435 yen in millions versus 253,881 yen in millions, while inventories increased by 137,728 yen in millions from March 31, 2026.
- The full-year forecast excludes the impact of the 2026 Kumamoto Earthquake because Sony stated that the impact is currently difficult to reasonably estimate.
What to watch
- The impact of the 2026 Kumamoto Earthquake on consolidated financial results, which is not incorporated in the full-year forecast.
- Whether the full-year forecast of 1,720,000 yen in millions of operating income is achieved following first-quarter operating income of 476,499 yen in millions.
- Game & Network Services mix between Network Services sales of 208,623 yen in millions and Hardware and Others sales of 222,005 yen in millions.
- Pictures performance, particularly Television Productions sales after the reported decline to 90,916 yen in millions.
- The July 15, 2026 Music-segment asset acquisition, including approximately 550 billion yen of content assets, approximately 310 billion yen of long-term debt and approximately 65 billion yen of noncontrolling interests.
Balance sheet and cash flow
- Cash and cash equivalents at June 30, 2026: 2,170,019 yen in millions, compared with 2,208,879 yen in millions at March 31, 2026.
- Short-term borrowings at June 30, 2026: 49,836 yen in millions; current portion of long-term debt: 160,633 yen in millions; long-term debt: 993,702 yen in millions.
- Inventories at June 30, 2026: 1,365,079 yen in millions, compared with 1,227,351 yen in millions at March 31, 2026.
- Content assets at June 30, 2026: 2,664,749 yen in millions, compared with 2,558,615 yen in millions at March 31, 2026.
- Payments for property, plant and equipment and other intangible assets: (137,870) yen in millions.
- Net decrease in cash and cash equivalents: (38,860) yen in millions.
Analysis
Sony delivered broad first-quarter growth under IFRS Accounting Standards. Sales were 2,837,771 yen in millions, up 8.2%, while operating income was 476,499 yen in millions, up 40.2%. Income before income taxes increased 33.9% to 477,491 yen in millions. Net income attributable to Sony Group Corporation’s stockholders from continuing operations was 342,161 yen in millions, up 32.1%, and diluted earnings per share from continuing operations was 57.82 yen. Prior-year continuing-operation comparisons reflect the classification of Financial Services as a discontinued operation following the SFGI spin-off.
The largest profit gains came from Imaging & Sensing Solutions, where operating income increased to 122,203 yen in millions from 54,251 yen in millions, and Game & Network Services, where operating income increased to 202,014 yen in millions from 147,957 yen in millions. Music also expanded, with sales to customers of 557,866 yen in millions and operating income of 105,882 yen in millions. Music growth spanned streaming, other recorded music and publishing. In Game & Network Services, Network Services sales increased to 208,623 yen in millions, while Digital Software and Add-on Content and Hardware and Others were lower than the prior-year period.
The quarter was not uniformly strong across the portfolio. Pictures sales to customers declined to 312,208 yen in millions, as Television Productions sales declined to 90,916 yen in millions, partly offset by Media Networks sales of 118,574 yen in millions. Entertainment, Technology & Services sales to customers increased to 534,421 yen in millions, but operating income declined to 42,601 yen in millions. All Other widened to an operating loss of (13,261) yen in millions.
Operating cash flow from continuing operations was 197,435 yen in millions, below 253,881 yen in millions in the prior-year period. Inventory increased by 137,728 yen in millions from March 31, 2026, content assets increased by 106,134 yen in millions, and cash and cash equivalents declined to 2,170,019 yen in millions. Sony paid (127,480) yen in millions for treasury stock purchases and declared dividends of (73,846) yen in millions. The company also completed a Music-segment asset acquisition on July 15, 2026 involving approximately 260 billion yen of cash consideration and the recognition of approximately 550 billion yen of content assets.
Sony revised its fiscal-year forecast and now expects sales of 12,500,000 yen in millions, operating income of 1,720,000 yen in millions, income before income taxes of 1,710,000 yen in millions and net income attributable to Sony Group Corporation’s stockholders of 1,210,000 yen in millions. The forecast calls for 0.2% sales growth and 18.8% operating-income growth. Sony stated that the effect of the July 28, 2026 Kumamoto Earthquake has not been incorporated because the impact is currently difficult to reasonably estimate.
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Non-GAAP or adjusted financial measures were not reported.
- A total debt figure was not reported as a single line item.
- Prior-quarter operating results were not reported.
- Percent year-on-year changes for individual segment sales and segment operating income were not reported.
- Prior outlook figures were not provided, so comparison of actual results with prior guidance is unavailable.
- Named executive commentary or attributable executive quotes were not included in the filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.