Sony Group (6758) investor relations material

Executive summary

• First quarter sales rose 8–8.2% year-over-year to JPY 2,837.8 billion, with operating income up 40–40.2% to JPY 476.5 billion and net income up 32–32.1% to JPY 342.2 billion, all record highs for Q1.

• Strong performance in Imaging & Sensing Solutions and Music segments drove growth, while Pictures segment sales declined.

• The Kumamoto earthquake impacted semiconductor facilities, but restoration is progressing quickly; the full financial impact is not yet estimated or included in forecasts.

• The Financial Services business was spun off as of October 1, 2025, and is now excluded from continuing operations.

Financial highlights

• Operating income margin improved to 16.8% from 13.0% year-over-year.

• Diluted EPS rose to JPY 57.82, up JPY 14.98 year-over-year; basic EPS from continuing operations increased to JPY 58.07.

• U.S. tariff refunds of JPY 80 billion, with about 70% recognized in Q1, contributed to profit growth.

• Gross margin improved as costs and expenses grew slower than sales.

• Net cash provided by operating activities was JPY 197.4 billion, down from JPY 253.9 billion year-over-year.

Outlook and guidance

• FY2026 sales forecast raised to JPY 12,500 billion (+2%), operating income to JPY 1,720 billion (+8%), and net income to JPY 1,210 billion (+4%).

• Annual dividend forecast raised to JPY 35 per share from JPY 25 per share in the prior year.

• Operating cash flow forecast unchanged at JPY 1,500 billion.

• The impact of the Kumamoto Earthquake is not yet reflected in the forecast due to uncertainty.

• Upward revisions driven by Game & Network Services segment and positive FX impacts.