Sony Reports $7.32 Billion Annual Profit Despite Gaming, Electronics Sales Dip

Sony, late on Tuesday night, reported its annual net profit increased 18% to 1.14 trillion yen, or $7.32 billion. The Japanese multinational conglomerate achieved that big profit jump despite a conspicuous drop in fourth quarter revenue, driven largely by a decline in sales from its gaming and consumer electronics sectors between January and March.

The Tokyo-based company also warned shareholders its 2025 operating profit could take a 100 billion yen — or $642 million — hit due to U.S. tariffs. Sony, in its presentation to shareholders, said it is “responding quickly” to the tariffs and that it is confident it will “manage the impact” without much of an issue.

Here is a look at the key results:

Revenue: 2.63 trillion yen ($16.88 billion), down 24% year-over-year. Sony’s quarterly sales fell short of matching the $20.40 billion that analysts projected, according to estimates from Zacks Investment Research.

Net income: 197.7 billion yen, or about $1.27 billion, which was up 5% compared to the same quarter last year.

Total operating income: 203.60 billion yen, or about $1.31 billion, down 11% year over year.

The two sectors that played a major role in Sony’s drop in quarterly sales were its Gaming division and Entertainment, Technology & Services (ET&S), which covers a broad range of products, including TVs, cameras, and audio equipment. ET&S revenue for the most recent quarter dropped 9.12% year-over-year, to 484.1 billion yen, or $3.11 billion.

Sales for Sony Gaming, which is driven primarily by its linchpin console, Playstation 5, were also down 4.19% during the quarter to 1.05 trillion yen, or about $6.75 billion. Even with the down quarter, Gaming’s sales for the financial year were still up nearly 10% annually, hitting 4.67 trillion yen, or about $30 billion.

Both Sony’s Music and Pictures sectors helped offset those declines, with its movie business seeing a 2% jump in quarterly sales to $2.67 billion. For the financial year, Sony Pictures reported 1.51 trillion yen in sales, up slightly from the 1.49 yen in revenue it reported a year earlier. Sony pointed to “higher revenues for Crunchyroll,” its anime-focused streaming service, “mainly due to paid subscriber growth,” without offering further details.

Sony Music, meanwhile, contributed 470.7 billion yen, or a little more than $3 billion, in quarterly revenue — up 9.50% year-over-year.

From a Hollywood standpoint, Sony released a few notable flicks during the opening months of 2025, including “Paddington in Peru,” which brought in nearly $200 million at the box office and easily turned a profit. “One of Them Days,” starring Keke Palmer and SZA, was well-received by critics and audiences as well, pulling in more than $50 million during its theatrical run.

Looking ahead to what is coming out this quarter, Sony has “Karate Kids: Legends,” the sixth “Karate Kid” flick starring Ralph Macchio and Jackie Chan, debuting in the U.S. at the end of May. And Danny Boyle’s post-apocalyptic “28 Years Later” is set to be released on June 20.

Heading into Tuesday night, Sony has had a nice start to the year on Wall Street, with the company’s share price up 16.36% since the calendar flipped to 2025; Sony was trading for $24.54 per share when markets closed on Tuesday.

Sony also said, in its fourth quarter report, that it expects U.S. tariffs to ding the company’s 2025 operating income by approximately 100 billion yen, or $642 million. Sony projected its 2025 operating income to essentially be flat at 1.28 trillion yen.

“We are responding quickly to the additional U.S. tariffs that have already been implemented and are considering responses to multiple possible future scenarios,” Sony said in its presentation to shareholders.

That 100 billion yen projection could change soon, though, after the U.S. rolled back its 145% tariff on China on Monday. As Sony said in a footnote, “the impact of the partial removal and temporary suspension of the additional and reciprocal tariffs on China by the United States announced on May 12 is not included in the assumptions used for estimating the relevant impact.”

Sony added: “The actual impact could vary significantly from this estimation if future tariff policy or other factors are changed.”

And in other Sony news, company President Hiroki Totoki was elevated to CEO on April 1. This will be his first quarter running the company, after nearly 40 years at Sony.

The post Sony Reports $7.32 Billion Annual Profit Despite Gaming, Electronics Sales Dip appeared first on TheWrap.