Sony (6758) AI Stock Analysis

• Market Cap: ¥22.26T
• Dividend Yield: 0.55%
• Average Volume (3M): 13.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -2.86%
• EPS Growth: 5.93%
• Country: JP
• Employees: 113,000
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 63.18
• Shares Outstanding: 6,149,810,500
• 10 Day Avg. Volume: 16,858,589
• 30 Day Avg. Volume: 13,043,676
• PEG Ratio: 1.03
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 13.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,940.70
• Price Target Upside: 35.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 191.64
• Revenue Forecast (FY): ¥12.34T

• Rating: 56 Neutral
• Price Target: ¥3,612.00 ▼(-0.85% Downside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is primarily supported by comparatively solid underlying financial structure (notably the balance sheet) and positive recent cash generation, but is held back by the latest TTM net loss and a clearly bearish technical setup (price below key moving averages with negative MACD). Valuation contributes only modestly due to a negative P/E and low dividend yield.

Positive Factors

Diversified business model

Sony's multi-segment structure (gaming, music, pictures, electronics, image sensors, financial services) spreads revenue sources across consumer and B2B markets. This reduces reliance on any single cycle, enabling more stable cash generation and strategic reinvestment across content, hardware, and component R&D over the medium term.

Balance-sheet resilience

Improved leverage and growing equity give Sony financial flexibility to fund large content investments, capex for sensors and PlayStation hardware, and selective M&A. A manageable capital structure supports resilience through cyclical downturns and preserves capacity for strategic spending without immediate liquidity strain.

Positive operating and free cash flow

Renewed positive operating and free cash flow provides a durable source of internal funding for product development, content creation and sensor capacity. Consistent FCF underpins dividend or buyback flexibility and reduces dependence on external financing for multi-year strategic investments.

Negative Factors

Declining revenue trend

Material TTM revenue decline signals waning top-line momentum across key segments. Sustained revenue contraction can erode scale economics in content & platform businesses, pressure margins, and force tougher capital-allocation tradeoffs between product investment and maintaining recurring services over the next several quarters.

TTM net loss / below-the-line pressure

A TTM net loss despite operating profitability shows meaningful below-the-line issues (e.g., financing costs, FX, impairments). This undermines earnings consistency and could constrain shareholder returns or require one-off adjustments, complicating longer-term planning even if core operations remain healthy.

Inconsistent cash conversion

Irregular conversion of earnings into cash and a slight TTM FCF growth decline reduce predictability of available funds for capex, content spending, or dividends. Over a multi-quarter horizon, this variability complicates budgeting for large, capital-intensive projects like sensor capacity or first-party game development.

Sony Business Overview & Revenue Model

Company Description

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home and portable game consoles, packaged software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks, and post-production facilities. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sony generates revenue through multiple streams: primarily from its electronics division, which includes the sale of televisions, cameras, and audio devices; from its gaming division, notably through the PlayStation console and associated games and services; from its entertainment division, which includes film and television production and distribution, as well as music publishing and recording; and from its financial services, which encompass insurance and banking operations. Key revenue drivers include game sales and subscriptions through PlayStation Network, licensing fees from music and film properties, and the sale of consumer electronics. Strategic partnerships, such as collaborations with developers and content creators, further enhance its market reach and revenue potential.

Sony Financial Statement Overview

Summary

Financials are mixed: balance sheet strength (moderate leverage and improved debt-to-equity) and positive recent operating/free cash flow support the score, but the latest TTM net loss alongside slowing revenue momentum materially increases near-term earnings uncertainty.

Income Statement

Profitability has historically been solid, with healthy gross and operating margins across the annual periods and strong revenue expansion through 2024. However, growth has cooled more recently (near-flat in FY2025 and down in TTM (Trailing-Twelve-Months)), and the key overhang is the swing to a net loss in TTM (Trailing-Twelve-Months) despite still-positive operating profit—signaling meaningful below-the-line pressure and a less predictable earnings profile in the latest period.

Balance Sheet

The balance sheet screens fairly strong: leverage is moderate in the latest TTM (Trailing-Twelve-Months) snapshot (debt meaningfully below equity) and has improved versus prior annual periods where debt-to-equity was higher. Equity has also grown over time, supporting balance-sheet resilience. The main weakness is that returns to shareholders turned negative in TTM (Trailing-Twelve-Months) alongside the net loss, even though the capital structure itself looks manageable.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are positive in the most recent periods (including TTM (Trailing-Twelve-Months)), and free cash flow has improved substantially versus the negative year in FY2023. Offsetting this, free cash flow growth is slightly negative in TTM (Trailing-Twelve-Months), and cash conversion versus earnings is not consistently strong across years—highlighted by the FY2023 shortfall and the fact that cash flow has not reliably tracked profitability.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.07T	12.96T	13.02T	10.97T	9.92T	9.00T
Gross Profit	3.73T	4.40T	4.07T	3.97T	3.32T	2.98T
EBITDA	2.72T	2.71T	2.46T	2.29T	2.03T	1.74T
Net Income	-212.01B	1.14T	970.57B	1.01T	882.18B	1.03T
Balance Sheet
Total Assets	15.88T	35.29T	34.11T	31.15T	29.65T	27.51T
Cash, Cash Equivalents and Short-Term Investments	2.09T	3.45T	2.33T	1.83T	2.47T	2.22T
Total Debt	2.19T	4.20T	4.09T	4.06T	3.57T	2.65T
Total Liabilities	7.37T	26.78T	26.35T	24.50T	23.95T	20.78T
Stockholders Equity	8.16T	8.18T	7.59T	6.60T	5.65T	6.68T
Cash Flow
Free Cash Flow	1.62T	1.67T	749.27B	-298.94B	792.55B	662.29B
Operating Cash Flow	2.03T	2.32T	1.37T	314.69B	1.23T	1.14T
Investing Cash Flow	-1.83T	-930.12B	-818.89B	-1.05T	-728.78B	-960.61B
Financing Cash Flow	-616.30B	-298.24B	-210.71B	84.30B	-336.58B	58.16B

Sony Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3643.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6758, the sentiment is Neutral. The current price of 3643 is above the 20-day moving average (MA) of 3458.50, below the 50-day MA of 3688.86, and below the 200-day MA of 3873.15, indicating a neutral trend. The MACD of -70.41 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6758.

Sony Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6952	74 Outperform	¥358.07B	18.65	5.53%	3.55%	-5.43%	55.21%
6632	66 Neutral	¥196.15B	10.26	13.53%	1.34%	0.48%	-1.86%
6971	64 Neutral	$3.89T	37.01	1.37%	2.29%	-0.51%	-45.68%
6752	62 Neutral	¥5.92T	29.16	6.73%	1.99%	-6.96%	-7.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6758	56 Neutral	¥22.26T	-100.09	14.45%	0.55%	-2.86%	5.93%
6753	49 Neutral	¥418.19B	3.90	―	―	-10.88%	―