Sony Group Corp. (TYO:6758) projected annual operating profit below market expectations for fiscal 2027, despite posting strong full-year earnings fueled by growth in its music and image sensor businesses. The Japanese entertainment and technology giant expects operating income to reach 1.60 trillion yen ($10.6 billion) for the year ending March 2027, slightly below analysts’ forecast of 1.63 trillion yen.
Following the announcement, Sony shares slipped 1.6% during Friday trading, reflecting investor concerns over the weaker-than-expected outlook. However, the company still delivered solid financial results for fiscal 2026, reporting operating income from continuing operations of 1.45 trillion yen, a 13% increase compared to the previous year. Annual sales also climbed 4% to 12.48 trillion yen.
Sony’s Imaging & Sensing Solutions division emerged as a major growth driver, with operating profit surging 37% due to stronger demand for mobile image sensors and an improved product mix. The company continues to benefit from rising smartphone camera technology demand, reinforcing its position as a global leader in image sensor production.
The music segment also achieved record earnings, supported by strong streaming revenue and successful entertainment releases, including the popular title “Demon Slayer: Kimetsu no Yaiba Infinity Castle.” Sony’s diversified entertainment portfolio remains a key contributor to stable long-term revenue growth.
In the gaming sector, Sony forecast a 30% increase in operating profit for its Game & Network Services business during fiscal 2026. The improvement is expected mainly because the company will no longer face impairment losses tied to Bungie assets that affected results in fiscal 2025.
Sony also expects its operating profit margin to improve to 13.0% from 11.6% and projected a 13% rise in annual net profit to 1.16 trillion yen. Additionally, the company raised its planned annual dividend to 35 yen per share, up from 25 yen last year, signaling confidence in its future financial performance.


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