Sony (SON1) Q2 2026 Earnings Report

The call was strongly positive overall. Sony reported record second-quarter consolidated results, raised its full-year forecasts across multiple metrics and highlighted robust momentum in gaming engagement, music streaming, theatrical content, platforms and strategic partnerships. These positives were partly offset by explicitly stated challenges, including the Sony Honda Mobility loss, the God of War: Laufey delay, declining new PS5 unit sales, memory and inflation pressures, Chinese and smartphone market weakness, the Kumamoto earthquake loss, cybersecurity incidents and increasing image-sensor competition.

Sony raised its FY '26 sales forecast 4% compared to its previous forecast to JPY 13 trillion, its operating income forecast 9% to JPY 1,870 billion and its net income forecast 10% to JPY 1,330 billion, while operating cash flow is now JPY 1,600 billion. G&NS sales are forecast 6% higher at JPY 4,830 billion and operating income 6% higher at JPY 700 billion; Music sales are forecast 5% higher at JPY 2,300 billion and operating income 6% higher at JPY 445 billion; Picture sales are forecast 6% higher at JPY 1,760 billion and operating income 33% higher at JPY 200 billion; ET&S’s full year forecast remains unchanged; and I&SS sales are essentially unchanged at JPY 2,120 billion while operating income is forecast 7% higher at JPY 450 billion. New PS5 unit sales are gradually declining as expected in this stage of the console life cycle, hardware profitability for the current fiscal year is expected to remain on par with the previous fiscal year, the quantity of memory needed for projected hardware unit sales next fiscal year has been aligned, next-generation R&D is progressing as scheduled with the second half having a large impact of the investment amount, and the 9 million initial hardware guidance remains the reference point, with more units prepared than at the initial stage.