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Sony Corporation (JP:6758)
:6758
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Sony (6758) AI Stock Analysis

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JP:6758

Sony

(6758)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
¥3,976.00
▲(16.63% Upside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by solid operating performance, improved leverage, and strong recent cash generation, but is held back by losses and negative ROE that create earnings consistency risk. Technically, the stock shows constructive trend strength versus key moving averages. Valuation is pressured by a negative P/E (loss-making period) and a low dividend yield.
Positive Factors
Diversified business model
Sony’s multi-segment structure (Games, Music, Pictures, Imaging, Electronics, Financial Services) spreads revenue sources and reduces reliance on any single cycle. This durable diversification supports steadier cash flows and cross-licensing/IP advantages that underpin long-term resilience and strategic optionality.
Negative Factors
Earnings volatility and negative ROE
Despite solid operating margins, Sony’s net results have swung to losses and pushed ROE negative, signaling volatility between operating profit and bottom-line outcomes. Persistent earnings inconsistency undermines return metrics, makes reinvestment and dividend predictability harder over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Sony’s multi-segment structure (Games, Music, Pictures, Imaging, Electronics, Financial Services) spreads revenue sources and reduces reliance on any single cycle. This durable diversification supports steadier cash flows and cross-licensing/IP advantages that underpin long-term resilience and strategic optionality.
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Sony (6758) vs. iShares MSCI Japan ETF (EWJ)

Sony Business Overview & Revenue Model

Company Description
Sony Group Corporation, a global technology and entertainment conglomerate based in Tokyo, Japan, was founded in 1946 as Sony Corporation and adopted its current name in April 2021. The company operates internationally across consumer, professiona...
How the Company Makes Money
Sony makes money through multiple operating segments with distinct revenue models: (1) Game & Network Services: Revenue is generated from selling PlayStation consoles and accessories, first-party and third-party game software (physical and digital...

Sony Earnings Call Summary

Earnings Call Date:May 08, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call revealed a strong financial performance with record highs in several segments, such as Game and Network Services and Music. However, the potential impact of U.S. tariffs and challenges in the Pictures and Financial Services segments present significant concerns.
Positive Updates
Record High Financial Performance
Consolidated sales excluding the Financial Service segment for FY '24 reached ¥12,043.9 billion, and operating income was ¥1,276.6 billion, both record highs.
Negative Updates
Potential Impact of U.S. Tariffs
The U.S. tariffs are expected to impact profitability by approximately ¥100 billion, affecting the G&NS, ET&S, and I&SS segments.
Read all updates
Q4-2025 Updates
Negative
Record High Financial Performance
Consolidated sales excluding the Financial Service segment for FY '24 reached ¥12,043.9 billion, and operating income was ¥1,276.6 billion, both record highs.
Read all positive updates
Company Guidance
During the Sony Group Corporation's Corporate Strategy and Earnings Announcement Presentation for 2025, several key metrics and strategic directions were highlighted. Sony's consolidated sales excluding the Financial Service segment for FY '24 reached ¥12,043.9 billion, with an operating income of ¥1,276.6 billion, marking record highs for the company. Including the Financial Service segment, consolidated sales were ¥12,957.1 billion, with an operating income of ¥1,407.2 billion and a net income of ¥1,141.6 billion. The entertainment business accounted for 61% of Sony's consolidated sales, demonstrating its resilience during economic downturns. For FY '25, the forecasted sales are ¥11,700 billion with an operating income of ¥1,380 billion. The company is also focusing on increasing average revenue per user (ARPU) through the PlayStation Store. The Music segment saw sales of ¥1,842.6 billion and operating income of ¥357.3 billion, both of which were record highs. Sony expects stable growth in the Pictures segment, with forecasted sales of ¥1,500 trillion and an operating income of ¥125 billion. Anime is projected to be a significant growth driver, with the market size expected to grow at a high single-digit CAGR from 2023 to 2030. The Imaging & Sensing Solutions segment anticipates growth in sales and profit due to an expansion of mobile sensor sizes. Sony announced a strategic focus on leveraging its diverse business portfolio and cross-company collaborations to drive future growth.

Sony Financial Statement Overview

Summary
Financials are mixed. Revenue has rebounded sharply and operating profitability remains solid with healthy gross and EBIT margins. Balance sheet leverage is manageable with sizable equity, and TTM operating/free cash flow are robust with strong FCF growth. The key drag is bottom-line volatility: net income has swung to losses in the latest annual period and TTM, driving negative net margins and negative ROE.
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
66
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue12.70T12.48T12.96T13.02T10.97T9.92T
Gross Profit4.04T3.84T3.66T3.33T3.24T2.70T
EBITDA2.76T2.70T2.67T2.45T2.31T1.97T
Net Income-221.61B-326.87B1.14T970.57B1.01T882.18B
Balance Sheet
Total Assets16.05T15.68T35.29T34.11T31.15T29.65T
Cash, Cash Equivalents and Short-Term Investments2.17T2.21T3.45T2.33T1.83T2.47T
Total Debt1.87T1.67T4.20T4.09T4.06T3.57T
Total Liabilities7.27T7.17T26.78T26.35T24.50T23.95T
Stockholders Equity8.37T8.12T8.18T7.59T6.60T5.65T
Cash Flow
Free Cash Flow1.57T1.49T1.67T749.27B-298.94B792.55B
Operating Cash Flow2.04T1.95T2.32T1.37T314.69B1.23T
Investing Cash Flow-1.96T-1.95T-930.12B-818.89B-1.05T-728.78B
Financing Cash Flow-735.21B-861.20B-298.24B-210.71B84.30B-336.58B

Sony Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥396.29B16.708.03%2.54%11.54%329.69%
70
Outperform
¥168.28B9.8412.43%1.57%-3.63%-14.77%
65
Neutral
¥4.86T30.124.27%1.41%6.22%606.26%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥22.44T-103.05-4.05%0.73%1.02%-119.24%
50
Neutral
¥10.00T39.493.86%1.03%-0.76%-31.01%
49
Neutral
¥401.50B8.47-12.38%31.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6758
Sony
3,721.00
-61.95
-1.64%
JP:6952
Casio Computer Co
2,201.50
1,052.95
91.68%
JP:6971
Kyocera
3,792.00
1,936.13
104.32%
JP:6752
Panasonic
4,312.00
2,815.14
188.07%
JP:6632
JVCKENWOOD Corporation
991.10
-274.21
-21.67%
JP:6753
Sharp Corporation
642.90
-126.90
-16.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2026