Sony posts strong Q2 results, eyes financial services spin-off

Sony reported a 5% increase in sales to JPY 3,107.9 bn and a 10% rise in operating income to JPY 429.0 bn for the second quarter (Q2 FY2025) of continuing operations, driven by strong performances in Music and Imaging & Sensing Solutions (I&SS) segments. Net income attributable to stockholders grew 7% to JPY 311.4 bn. Full-year forecast for continuing operations projects sales of JPY 12,000 bn and operating income of JPY 1,430 bn, with a positive revision to the previous forecast.

A key development includes the partial spin-off of Sony Financial Group Inc. (SFGI) on October 1, 2025, reclassifying the financial services business as a discontinued operation. Post-spin-off, SFGI shares will be accounted for using the equity method. Additionally, Sony announced a share repurchase program, authorizing up to 35 million shares or JPY 100 bn, to be executed between November 12, 2025, and May 14, 2026. This initiative aims to enhance capital efficiency and offset dilution from stock compensation plans.

The company also declared an interim dividend of JPY 12.5 per share, contributing to a projected annual dividend of JPY 25 per share. While Q2 FY25 saw an improvement in foreign exchange gains and losses, a higher Japanese tax rate, primarily due to decreased research and development tax credits, impacted income tax expenses. The estimated tariff impact on operating income for continuing operations is expected to decrease to JPY 50 bn for the full fiscal year.