Sony forecasts 11% rise in operating profit

Sony said in Tokyo on May 8 that it expects operating profit to rise 11% to 1.6 trillion yen, or US$10.2 billion, for the year ending March 2027 as gains elsewhere offset lower sales in its gaming business.

Operating profit for the year ended March 2026 rose 13.4% to 1.5 trillion yen (US$9.27 billion) but missed the 1.6 trillion yen (US$9.97 billion) analyst estimate compiled by LSEG.

Investors have recently focused on how AI could affect Sony’s businesses and on the lack of clear growth drivers.

They are also watching for pressure on margins from higher memory chip prices and supply chain disruption linked to the Iran war.

🔗 Source: Reuters

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Sony’s gaming weakness sits in hardware, not engagement

Gaming sales fell, though the picture is more mixed.
Sony’s PlayStation 5 game console, now in its sixth year, posted a 16% drop in unit sales during the holiday quarter from October to December 1.
Even so, operating profit in Sony’s gaming division rose 19%, helped by stronger software sales and a weaker yen 1.
The business keeps moving toward downloads and online services. Digital downloads made up 76% of software sales, while PlayStation Network, Sony’s online gaming service, reached 132 million monthly active users 2.

Geopolitical conflict could tighten AI-strained chip supply chains

War in Iran could disrupt chip production if it cuts access to helium from Qatar, a material used in chipmaking 3.
That would add pressure to a memory shortage already tied to AI and data center demand, which has lifted memory chip prices 4.
The increase is already steep. Contract prices for conventional Dynamic Random-Access Memory (DRAM) chips are projected to climb 90% to 95% this quarter from the prior three months 4.
Higher memory costs could squeeze Sony’s hardware margins. Sony said it secured the minimum supply of memory chips needed for the next year-end shopping season 1.