By Kosaku Narioka

Sony Group raised its earnings forecasts after a stronger-than-expected second quarter, citing a smaller projected tariff hit and the success of an anime film.

The Japanese electronics and entertainment company said Tuesday that it now expects a U.S. tariff burden of 50 billion yen, equivalent to $324.4 million, on operating profit for the year ending March, rather than Y70 billion estimated previously. Sony also said a recent hit movie based on the popular manga series "Demon Slayer" helped its movie and music businesses for the latest quarter.

Additionally, the company raised its operating profit forecast for its image-sensor business, after strong sales of image sensors for mobile products and digital cameras boosted the segment's second-quarter profit.

Shares in Sony closed 5.5% higher, its biggest one-day percentage gain in a month. The stock has risen nearly 40% this year, driven by hopes that the company's focus on its games and other entertainment businesses will lead to higher earnings.

The company spun off its financial business in October to focus on its game and other entertainment businesses. It has also spent billions on acquisitions in recent years to beef up its entertainment content.

Earlier this year, Sony acquired an additional stake in major Japanese publishing house Kadokawa for more than $300 million. In July, it said it planned to acquire a stake of about $460 million in Bandai Namco Holdings, known for popular videogames such as "Pac-Man" and "Tekken," to broaden their collaboration.

Sony on Tuesday reported a 6.7% increase in second-quarter net profit from a year earlier to Y311.4 billion, equivalent to $2.02 billion. That beat analysts' expectations of Y278.5 billion, according to a poll by data provider Visible Alpha. Second-quarter revenue rose by a better-than-expected 4.6% to Y3.108 trillion.

Operating profit for its imaging and sensing business surged 50% to Y138.27 billion due to stronger sales of image sensors used in mobile products and digital cameras. Meanwhile, operating profit for its game business fell 13% to Y120.35 billion due to impairment losses related to unit Bungie's shooter videogame "Destiny 2" and development expenses, despite higher revenue from software sales and network services.

Sony sold 3.9 million PlayStation 5s in the three months ended September, slightly more than the 3.8 million units sold in the year-earlier period. That came despite the company raising its recommended retail price for PS5 consoles in the U.S. by $50 to $549.99, citing a challenging economic environment.

For the year ending March, it projected revenue to decline 0.3% to Y12.000 trillion and net profit to drop 1.6% to Y1.050 trillion. The company previously projected revenue of Y11.700 trillion and net profit of Y970.00 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 11, 2025 02:55 ET (07:55 GMT)

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