Sony’s Disappointing Financial Forecast Amid US Tariffs

Sony’s Forecast Disappoints Amid US Tariffs

Sony Group’s financial forecast for the year ahead has disappointed investors. The company expects a flat operating profit of ¥1.28 trillion (roughly Rs. 74,353 crore) despite anticipating a significant impact from US tariffs.

Key Highlights

• US Tariff Impact: Sony expects a ¥100 billion (roughly $700 million or Rs. 5,975 crore) impact from US tariffs in the year to March.
• Operating Profit: The company’s projected operating profit falls short of the average analyst estimate of ¥1.5 trillion (roughly Rs. 87,126 crore).
• Share Buyback: Sony announced a share buyback of up to ¥250 billion (roughly Rs. 14,521 crore) to boost shareholder returns.

PlayStation 5 Sales

• Console Sales: Sony sold 18.5 million PlayStation 5 consoles in the year to March, down from 20.8 million in the previous year.
• GTA VI Delay: The postponement of Grand Theft Auto VI is expected. This is likely to impact PlayStation sales in the current fiscal year.

Challenges Ahead

• Tariff-Related Risks: Sony faces uncertainty due to potential tariffs on movies made outside the US. This could affect its Japanese animated film promotions.
• Image Sensor Outlook: The company’s image sensor business outlook is murky due to tariffs hitting handsets in the US.

Market Reaction

• Stock Price: Sony’s shares rose as much as 4.5% after the report, with investors welcoming the share buyback announcement