Sony Forecasts 11% Profit Lift and $3.2bn Buyback
May 8, 2026 – 9:20 am
Sony Group has set out FY26 guidance, projecting operating profit of ¥1.6 trillion (approximately $12.7 billion) for the year ending March 2027, a 11% increase from the prior year. They also announced a share buyback programme worth up to ¥500bn ($3.2 billion).
Where the Profit Comes From
The FY25 fiscal year ended with a record operating profit. Music and image sensors have been key contributors:
- Music: Revenue grew double digits in the December quarter, driven by strong chart performances from artists like SZA, Doja Cat, and Tyla, as well as streaming, live events, and merchandising.
- Image Sensors: Sony’s Semiconductor Solutions unit, a leading manufacturer of CMOS sensors used in approximately half of all globally shipped smartphones, gained market share in the high-end segment. Average selling prices (ASPs) rose alongside volumes.
Challenges with PS5
The Game and Network Services segment, however, faces significant challenges due to a global shortage of DRAM chips, which is expected to lead to:
- A 6% year-over-year decline in hardware sales for FY26.
- Price increases for the PS5 in the US by $100 to mitigate material costs.
- A shift in growth strategy toward monetising the existing PS5 install base of over 70 million units through software, network services, and add-on content.