Sony logs $7.7 bln annual net profit, issues cautious forecast
TOKYO
Japanese entertainment and electronics giant Sony Wednesday reported an 18 percent jump in annual net profit but issued a cautious forecast for the current financial year.
The firm logged a net profit of 1.14 trillion yen ($7.7 billion) for the 2024-25 financial year, but said it expects that to fall 13 percent to 930 billion yen in 2025-26.
"We are responding quickly to the additional U.S. tariffs that have already been implemented and are considering responses to multiple possible future scenarios," the company said in a note alongside its profit forecasts.
"We currently expect to be able to manage the impact on the profitability to approximately 100 billion yen, or less than 10 percent of the operating income forecast."
Sony had in February hiked its annual forecasts, following robust sales of games, music and other products in the October-December holiday shopping season.
Its "video game, music and film businesses are showing steady performance", Rakuten Securities chief analyst Yasuo Imanaka said in a note last month.
For the key gaming sector, "the next fiscal year to March 2026 is also expected to see steady growth", he added.
"Regarding the rise in U.S. tariffs, [Sony] will likely be able to deal with it for the time being as it has stockpiled inventory in the United States," Imanaka said.
"But if high tariffs continue, the longer term impact is unclear," he warned.
Sony in April said it had hiked the price of some PlayStation 5 consoles in select markets, but not the United States, because of "challenging" global economic conditions.
But it has not touched the cost of the higher-priced, higher-spec PS5 Pro console, which hit shelves in November.
