SONY Q2 Earnings & Revenues Rise Y/Y, View Up on G&NS & Music Momentum

Sony Group Corporation (SONY) reported second-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥51.71, up from ¥48.04 in the year-ago quarter. Adjusted net income came in at ¥311.4 billion compared with ¥291.8 billion in the prior-year quarter.Quarterly total revenues rose 5% year over year to ¥3,107.9 billion, driven by higher revenues in the Game & Network Services (G&NS), Music and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment.Sony has updated its outlook for the fiscal year ending March 31, 2026. It now expects sales of ¥12,000 billion, up from the previous guidance of ¥11,700 billion. The top-line performance is likely to be driven by strengthening momentum in the G&NS and Music segments. For G&NS, revenues are now expected to be ¥4,470 billion compared with the earlier projection of ¥4,320 billion, while for Music, net sales are now estimated at ¥1,980 billion compared to ¥1,870 billion predicted earlier. Following the announcement, Sony’s shares gained 4% in the pre-market trading today. Segmental ResultsIn the quarter under review, G&NS sales were up 4% year over year to ¥1,113.2 billion. The uptick was fueled by higher sales from network services and rising sales of game software titles. Operating income decreased 13% to ¥120.4 billion due to impairment losses of ¥31.5 billion on a portion of Bungie, Inc.’s intangible and other assets related to Destiny 2 and ¥18.3 billion in expenses from correcting previously capitalized development costs, partially offset by higher sales from network services.Music sales improved 21% year over year to ¥542.4 billion in the fiscal second quarter on the back of higher revenues from streaming services in Recorded Music and Music Publishing, as well as mobile game applications in Visual Media & Platform. Operating income rose to ¥115.4 billion from ¥90.4 billion in the same quarter last year.Pictures sales declined 3% year over year to ¥346 billion, affected by lower revenues from theatrical releases and catalog licensing in Motion Pictures, partially offset by higher revenues from Crunchyroll and growth in paid subscribers. Operating income plunged 25% year over year to ¥13.9 billion, as higher revenue from Crunchyroll was more than offset by lower revenues from theatrical releases.Sony Corporation Price, Consensus and EPS Surprise Sony Corporation price-consensus-eps-surprise-chart | Sony Corporation QuoteET&S sales totaled ¥575.7 billion, down 7% year over year, owing to a fall in unit sales of displays. Operating income decreased 13% to ¥61 billion, mainly due to lower sales in Displays and Imaging as well as the impact of tariffs, partially offset by reductions in operating expenses.I&SS sales rose 15% year over year to ¥614.6 billion, owing to an increase in sales of image sensors for mobile products. Higher unit sales, coupled with a favorable product mix and the positive impact of the forex movement, acted as other catalysts. Operating income was ¥138.3 billion compared with ¥92.4 billion in the year-ago quarter, owing to higher sales and favorable forex impact.All Other sales were nearly flat year over year at ¥23.6 billion in the fiscal second quarter. Operating loss was ¥2.9 billion compared with a loss of ¥6.5 billion in the year-ago quarter.Other DetailsFor the quarter under review, total costs and expenses were ¥2,677.3 billion, up 3.8% year over year. Operating income was ¥429 billion, up 10%.SONY’s Cash Flow & LiquidityFor the six months ended Sept. 30, Sony generated ¥471.6 billion of cash from operating activities compared with ¥616.3 billion a year ago.As of Sept. 30, 2025, the company had ¥1,497.9 billion in cash and cash equivalents with ¥1,345 billion of long-term debt.Fiscal 2025 Forecast BolsteredOperating income guidance has been raised to ¥1,430 billion from ¥1,330 billion after accounting for tariff impacts, driven by higher profits in the I&SS and Music segments and a reduction in the estimated tariff impact.Net income is now estimated to be ¥1,050 billion compared with the prior view of ¥970 billion.SONY also tweaked guidance for the I&SS and ET&S segments. For I&SS, revenues are now expected at ¥1,990 billion compared with the earlier forecast of ¥1,960 billion. For ET&S, revenues are now estimated at ¥2,300 billion compared with the earlier forecast of ¥2,280 billion.SONY’s Zacks RankSony currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other CompaniesGoPro, Inc. (GPRO) reported third-quarter 2025 non-GAAP loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. The company forecasted non-GAAP adjusted loss of 4 cents per share (+/- 2 cents). The firm reported break-even earnings in the year-ago quarter. GPRO generated revenues of $162.9 million, down 37.1% year over year. The figure was within the company’s expectation of $160 million (+/- $10 million). The top line beat the consensus mark by 0.5%.Sonos, Inc. (SONO) reported fourth-quarter fiscal 2025 non-GAAP loss per share of 6 cents. The Zacks Consensus Estimate was pegged at earnings of 5 cents. The company incurred a loss of 18 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 31 cents compared with a loss of 44 cents in the year-ago quarter. Quarterly revenues increased 12.7% year over year to $287.9 million. Moreover, the figure came near the high end of the company’s guidance of $260 million to $290 million. The Zacks Consensus Estimate for the top line was pegged at $283.1 million.Alto Ingredients (ALTO) came out with quarterly earnings of 19 cents per share, beating the Zacks Consensus Estimate of a loss of 6 cents per share. This compares to a loss of 4 cents per share a year ago. Alto Ingredients posted revenues of $240.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $251.81 million.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GoPro, Inc. (GPRO): Free Stock Analysis Report Sonos, Inc. (SONO): Free Stock Analysis Report Alto Ingredients, Inc. (ALTO): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks