MW Sony warns this year's profit won't grow at all due to tariffs

By Steve Goldstein

Sony says it will spin off financial services arm for September

Japanese consumer electronics giant Sony warned on Wednesday that this year's profits won't grow at all because of tariffs.

The maker of the PlayStation 5 said its operating income forecast calls for 8% growth before tariffs, and 0% growth after tariffs are included. Sony said the tariff impact on operating income will be about 100 billion yen, or $680 million.

The 1.28 trillion yen ($8.7 billion) operating income forecast lagged the Visible Alpha-compiled 1.38 trillion yen estimate.

Sony shares $(SONY)$ (JP:6758) rallied in premarket trade, with its stock climbing 5%. The stock has gained 16% this year.

Sony said it's expecting an increase in sales of its own line of game titles even as it sells fewer PlayStations. It's also expecting more revenue from music streaming and its anime business, while seeing lower revenue from theatrical releases due to the production delays from the Hollywood strikes of 2023.

Sony is also forecasting improving sales of image sensors for mobile phones and a better product mix in digital cameras.

The forecast came after a March 31-ending fourth quarter in which its profit rose 9% to 197.7 billlion yen, while sales fell 24% to 2.63 billion yen.

Excluding its financial services arm which it's partly spinning off, profit would've jumped 33% on steady revenue.

Sony said the spin-off of more than 80% of Sony Financial Group will come in September with a listing on the Tokyo Stock Exchange.

U.S. holders of the Sony's American depository receipts will receive unsponsored ADRs in the financial services company, which means those will trade over-the-counter rather than on the New York Stock Exchange where Sony ADRs trade.

Sony also authorized a stock buyback of 250 billion yen.

-Steve Goldstein

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May 14, 2025 04:30 ET (08:30 GMT)

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