Sony Lifts Forecast as Music Division Soars on ‘Demon Slayer’ Boom

Sony Group Corporation has lifted its full-year financial outlook following a robust second quarter, as soaring earnings from its music and image sensor divisions helped offset weaker results in gaming and consumer electronics. The Tokyo-based multinational conglomerate, a powerhouse in both entertainment and consumer technology, reported a 10% year-on-year jump in operating income to JPY429 billion ($2.78 billion) for the quarter ended September 30. Total revenue climbed 5% to JPY3.11 trillion ($20.17 billion), while net income attributable to shareholders rose 7% to JPY311.4 billion ($2.02 billion).

Bolstered by these results, the company has revised its operating income forecast for the fiscal year ending March 2026 upward to JPY1.43 trillion ($9.27 billion). This new projection is 8% higher than its previous estimate and represents a 12% gain over the prior fiscal year. Sony attributed the improved outlook to stronger-than-expected contributions from its music and imaging businesses, as well as a less severe financial impact from recent U.S. tariff measures than initially feared.

The music segment was a standout performer, with revenue surging 21% to JPY542.4 billion ($3.51 billion) and operating profit jumping 28% to JPY115.4 billion ($749 million), fueled by the continued global expansion of music streaming and publishing. A major catalyst was the blockbuster anime film "Demon Slayer: Kimetsu no Yaiba Infinity Castle," which significantly boosted the Visual Media & Platform division. This unit, managed by Sony’s Aniplex subsidiary—a leading anime production and licensing firm established in 1995—saw quarterly revenue skyrocket over 70% to JPY105.9 billion ($673 million), thanks to worldwide distribution via Crunchyroll and Sony Pictures that amplified earnings from soundtracks, licensing, and merchandise. By the end of September, the film had grossed $312 million globally. One industry expert noted, “Sony’s vertically integrated model—spanning anime creation to global distribution—creates a powerful revenue engine that few rivals can replicate.” As a result, the Visual Media & Platform unit now contributes nearly 30% of Sony Music’s total profit, up from less than 20% a year ago.

Another strong contributor was the Imaging & Sensing Solutions division, a top supplier of image sensors for smartphones, including Apple’s iPhones. Sales grew 15% to JPY614.6 billion ($3.98 billion), while operating profit leapt 50% to JPY138.3 billion ($897 million), supported by increased shipment volumes and premium pricing for its advanced, larger sensor components. These sensors are not only essential for mobile devices but are also increasingly vital for emerging technologies such as autonomous vehicles and industrial imaging systems.

However, not all divisions shared in the success. The Game & Network Services segment posted a 4% revenue increase to JPY1.11 trillion ($7.19 billion), but operating income fell 13% to JPY120.4 billion ($781 million), dragged down by impairment charges related to Bungie’s "Destiny 2" and revised development cost estimates. Excluding these one-time items, Sony stated that segment profit would have grown by 23%. Meanwhile, the Pictures division experienced a 3% revenue decline to JPY346 billion ($2.24 billion), and the Entertainment, Technology & Services unit—which includes televisions and audio products—recorded a 7% sales drop to JPY575.7 billion ($3.73 billion).

For the full fiscal year, Sony now anticipates sales of JPY12 trillion ($77.78 billion). The company also confirmed it will maintain its interim dividend at JPY12.5 per share, with an identical year-end dividend planned, bringing the annual total to JPY25 per share. This strategic emphasis on core entertainment and technology operations follows the recent spin-off of Sony Financial Group Inc., which was completed on October 1 and is now classified as a discontinued operation, enabling Sony to focus its resources on high-growth media and electronics segments.