Sony announces record surge in profits for Q1. Here’s how they did it

May 14, 2025 - 17:22

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Sony announces record surge in profits for Q1. Here’s how they did it

Japanese technology and entertainment company Sony logged an 18% rise in profit for the fiscal year through March on healthy results at its music and video-game operations.

Its chief executive, Hiroki Totoki, outlined the company’s strategy for growth Wednesday, stressing that collaboration among Sony Corp.’s various segments, like animation and music, were crucial to deliver the “kando,” or emotional engagement, that lies at the core of the company’s vision and strength.

“Building on our momentum and results to date and working with a laser-like focus to realize our long-term Creative Entertainment Vision will be at the core of our corporate strategies moving forward,” he told reporters.

Sony’s movies division has strong offerings in the pipeline, including Spider-Man films and biopics about The Beatles, while animation remains a driver of growth centered around the popular anime streaming service Crunchyroll, Totoki said.

Tokyo-based Sony reported a record annual profit of 1.14 trillion yen ($7.8 billion), up from 970.6 billion yen in the previous fiscal year. Annual sales were virtually unchanged, inching down to 12.957 trillion yen ($88 billion) from 13.020 trillion yen.

One area that lagged among Sony’s sprawling businesses was the financial segment, where revenue stalled. But its film division and its imaging and sensor solutions segment did well.

Sony officials said they were studying how to respond to President Donald Trump’s tariffs, although that was a challenge because of uncertainties and constant changes. But they said the negative impact from U.S. trade policy will be kept to 10% of Sony’s operating profit in the coming fiscal year by adjusting the allocation of shipments, among other measures.

Totoki stressed that Sony plans to leverage its content creating technology, like virtual reality and image sensors, to feed into its entertainment products, including working on immersive experiences. Sony also has powerful collaborative relations with various entertainment companies like Kadokawa, which includes publishing as well as films and animation, and Bandai Namco, a video game maker, he added.

Sony will emphasize the “diversity” of its workers, helping bring out people’s creative potential, Totoki said.

Among the Sony movies that fared well at the box office for the fiscal year through March were “Venom: The Last Dance,” featuring the Marvel Comics superhero, and “Bad Boys: Ride or Die,” an action comedy, where Will Smith and Martin Lawrence return in their popular cop roles in the fourth installment in the series.

Sony, which makes the PlayStation console and game software played on that machine, also posted healthy results in the gaming business.

Its music operations, which also held up, include recordings, streaming services and music for games. The top-selling recorded music projects for the latest fiscal year globally was SZA’s “SOS Deluxe: LANA,” followed by Beyonce, Future & Metro Boomin and Travis Scott.

The top seller in its Japan music business was Kenshi Yonezu’s “Lost Corner” album, followed by offerings from Stray Kids and Six Tones.

For the January-March quarter, Sony posted a 197.7 billion yen ($1.3 billion) profit, up 5% from 189 billion yen the same quarter in the previous fiscal year. Sales were 2.6 trillion yen ($17.7 billion), down 24% from 3.48 trillion yen.

Sony is forecasting a nearly 13% drop in profit for the fiscal year through March 2026, to 930 billion yen ($6.3 billion), on 11.7 trillion yen ($80 billion) sales, down 2.9% on-year.

Sony Group Corp. stocks, which fell in Tokyo morning trading, rebounded to finish 3.7% higher after its financial results were announced.