Sony Lifts FY2026 Forecast After Record 622.3 Billion Yen Quarter

Sony raised its fiscal 2026 forecast after posting 622.3 billion yen in second-quarter operating income, up 45% from a year earlier — a record quarter that pushed first-half operating income above 1 trillion yen for the first time in any half of a fiscal year. Sales for the quarter ended Sept. 30 rose 10% to 3,429.4 billion yen, and net income climbed 44% to 449.6 billion yen, Chief Financial Officer Lin Tao said on the earnings call.

The full-year picture now looks materially different. Sony lifted its sales forecast by 4% to 13 trillion yen, raised operating income guidance by 9% to 1.87 trillion yen, and increased its net income outlook by 10% to 1.33 trillion yen. The company also expects 1.6 trillion yen in operating cash flow (the cash a business generates from core operations). Tao noted some first-half profit came from U.S. tariff refunds and demand brought forward — a tailwind finance teams should not annualize.

What drove the gaming upgrade?

Game & Network Services sales rose 9% to 1,208.5 billion yen, with operating income up 83% to a second-quarter record of 220.1 billion yen. Excluding one-time losses recorded a year earlier, operating income rose 29%. Sony raised its full-year gaming sales forecast by 6% to 4.83 trillion yen and its operating income outlook by 6% to 700 billion yen.

Engagement metrics underpin the guidance. PlayStation monthly active users reached 127 million accounts in September, up 7%, and total playtime rose 4%. Tao said stronger engagement helped third-party software sales exceed expectations. Marvel's Wolverine, released in September, sold more than 2.4 million cumulative units, while Sony pushed God of War Laufey into the first quarter of the next fiscal year to continue development.

On hardware, Tao said Sony offset higher memory prices for PlayStation 5 through promotional and pricing adjustments plus cost reductions. Hardware profitability should stay on par with the prior year, and the company has already aligned with suppliers on memory volumes for projected next-year sales. New PS5 unit sales are gradually declining as the console ages, but development of the next-generation platform is on schedule, with some related costs shifting into the next fiscal year.

How did entertainment segments perform?

• Music: sales up 10% to 598.4 billion yen; operating income up 6% to 122.8 billion yen, a Q2 record. Streaming revenue offset the absence of a prior-year theatrical hit. Full-year operating income forecast raised 6% to 445 billion yen.
• Pictures: sales up 48% to 513.7 billion yen; operating income of 92.6 billion yen, roughly seven times the year-earlier level. Full-year forecast raised 33% to 200 billion yen on theatrical strength.
• Spider-Man: Brand New Day, released in July, generated more than $2.5 billion in cumulative worldwide box-office revenue; related game unit sales approximately doubled afterward.

Sony also plans a dedicated Crunchyroll hub on the PS5 home screen next spring to help users discover related games and anime.

Where are the risks?

Image sensor sales fell 6% to 577.6 billion yen, though operating income rose 12% to a quarterly record of 154.6 billion yen. Sony raised the segment's full-year operating income forecast by 7% to 450 billion yen. Tao said the smartphone market declined roughly 20% year over year in the quarter, with sharper drops in mid-range and lower-end phones; Sony's mobile sensor shipments generally tracked the market.

The Kumamoto Technology Center has recovered to pre-earthquake levels after the July 28 earthquake, with an approximately 16 billion yen loss included in the forecast for damaged inventory, equipment repairs and lost production time.

On cyberattacks, Tao acknowledged a series of incidents and apologized to affected customers and stakeholders. She declined to give details but said Sony is investigating an attack involving PlayStation accounts and has taken measures for affected customers.

Sony additionally booked an approximately 30 billion yen loss related to Sony Honda Mobility, which Tao said substantially completes recognition of losses from downsizing the venture's operations.