Sony Pictures Revenue Drops 12%, Overall Company Operating Income Jumps Up 22% in December Quarter on Strong Music Results

Sony Group has upgraded its financial forecast for the fiscal year ending March 2025, following a stronger-than-anticipated third quarter. The Tokyo-based conglomerate, a global leader in electronics, gaming, and entertainment, reported a 22% surge in operating income to JPY 515.0 billion ($3.3 billion) for the October-December period. This performance was bolstered by a one-time gain of JPY 43.9 billion from a land transfer related to the spin-off of Sony Life Insurance. Overall sales saw a modest 1% increase to JPY 3.713 trillion ($24.1 billion), while net income grew 11% to JPY 377.3 billion.

In light of these results, Sony now expects full-year operating profit to reach JPY 1.54 trillion, an 8% increase from its previous guidance. Its annual revenue projection was also raised by 3% to JPY 12.3 trillion. The company maintained its estimate for losses related to U.S. tariffs at JPY 50 billion. This optimistic revision comes during a period of executive transition, as previously announced: Kenichiro Yoshida will step down as CEO on April 1 to become executive chairman, with current president Hiroki Totoki assuming the CEO role. Analysts suggest this leadership handover, planned well in advance, provides stability as the company navigates a mixed performance across its diverse business units.

The quarter revealed a varied picture across Sony's divisions. Sony Pictures Entertainment experienced an 11% revenue decline to JPY 353.3 billion, with operating income down 9%. The company attributed this primarily to a tough comparison with the prior-year quarter, which benefited massively from the box office success of "Venom: The Last Dance" and related film licensing. In contrast, the Music segment flourished, with revenue up 13% to JPY 542.4 billion, driven by steady growth in streaming. On a U.S. dollar basis, streaming revenue grew 5% for recorded music and 13% for music publishing across its global labels, which include Sony Music Entertainment and Sony Music Publishing.

Sony's core PlayStation business presented a nuanced story. Revenue from the Games & Network Services segment dipped 4% to JPY 1.613 trillion. However, operating income for the division jumped 19% to JPY 140.8 billion, aided by favorable foreign exchange rates, stronger network services sales, and higher sales of first-party game titles. Crucially, user engagement hit new highs, with monthly active users reaching a record 132 million accounts in December 2025 and total gameplay hours increasing year-on-year, signaling a healthy and growing platform ecosystem.

Performance in other key segments was split. The Entertainment, Technology & Services segment, which includes electronics like televisions, saw revenue fall 7% due to lower display sales, pulling operating income down 23%. Conversely, the Imaging & Sensing Solutions segment was a standout performer, with sales soaring 21% to JPY 604.3 billion and operating income up 35%. This surge was fueled by higher sales of image sensors for mobile products, a market where Sony is a dominant supplier to smartphone manufacturers worldwide. All U.S. dollar conversions are based on an average exchange rate of 154 yen to the dollar.