Sony Group Corporation (SONY)
NYSE:SONY
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Sony Group
(NYSE:SONY)
Select Model
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Rating:56Neutral
Price Target:
$20.50
▼(-2.61% Downside)
Action:DowngradedDate:02/09/26
The score is anchored by solid cash generation and a manageable balance sheet, but is held back by the sharp TTM profitability setback (negative net margin/ROE) and weak technical trend (below key moving averages with negative MACD). Valuation signals are also constrained by the negative P/E and low dividend yield.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for R&D, content investment, supply-chain resilience, and shareholder returns. Strong cash conversion cushions earnings volatility, supports strategic M&A or JV activity, and preserves liquidity through industry cycles over the next 2–6 months.
Negative Factors
Recent profitability deterioration
A TTM drop in revenue and a negative net margin indicate compromised bottom-line conversion and lower ROE, raising questions about earnings quality. Persistent weakness could constrain reinvestment, dividend policy and organic growth initiatives, making near-term recovery critical for durable performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for R&D, content investment, supply-chain resilience, and shareholder returns. Strong cash conversion cushions earnings volatility, supports strategic M&A or JV activity, and preserves liquidity through industry cycles over the next 2–6 months.
Read all positive factors
Sony Group (SONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$127.54B
Dividend Yield0.41%
Average Volume (3M)5.07M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-11.64%
EPS Growth-116.17%
CountryUS
Employees113,000
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)0.40
Shares Outstanding6,149,810,500
10 Day Avg. Volume3,979,507
30 Day Avg. Volume5,067,626
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)2.82
Price to Sales (P/S)1.78
P/FCF Ratio13.76
Enterprise Value/Market Cap156.40
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit5.31
Enterprise Value/Ebitda7.25
Forecast
1Y Price Target
$28.00Price Target Upside33.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.32
Revenue Forecast (FY)$82.02B
Sony Group 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. ...
How the Company Makes Money
Sony makes money through multiple revenue streams tied to hardware, software/services, content licensing/distribution, component sales, and financial products. (1) Game & Network Services: Revenue is generated from sales of PlayStation consoles an...
Sony Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business units, highlighting which segments drive growth and profitability, and revealing strategic focus areas within Sony's diverse operations.
Breaks down revenue across different business units, highlighting which segments drive growth and profitability, and revealing strategic focus areas within Sony's diverse operations.
Data provided by:
The Fly
The FlySony Group Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2025)
| Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
Sony's earnings call highlighted strong performance in its entertainment segments, with record financial results and growth in user engagement. However, challenges such as the impact of U.S. tariffs and uncertainties in the film industry were noted. The company's cautious outlook for FY '25 reflects these challenges.Positive Updates
Record-Breaking Financial Performance
Sony reported consolidated sales of ¥12,043.9 billion and an operating income of ¥1,276.6 billion for FY '24, both record highs. The operating cash flow was ¥1,972.4 billion.
Negative Updates
Impact of U.S. Tariffs
Sony anticipates a ¥100 billion impact on profitability due to U.S. tariffs, affecting segments like G&NS, ET&S, and I&SS. Efforts to mitigate this impact include strategic inventory management and price adjustments.
Read all updates
Q4-2025 Updates
Positive
Negative
Record-Breaking Financial Performance
Sony reported consolidated sales of ¥12,043.9 billion and an operating income of ¥1,276.6 billion for FY '24, both record highs. The operating cash flow was ¥1,972.4 billion.
Read all positive updates
Company Guidance
During the 2025 Corporate Strategy and Earnings Announcement Presentation, Sony Group Corporation provided detailed guidance on various business segments. Sony emphasized its strategic focus on the entertainment sector, with the entertainment business contributing to 61% of consolidated sales, highlighting its resilience during economic downturns. The PlayStation 5's expansion is expected to drive steady profit, with a focus on maximizing average revenue per user. In the music segment, Sony aims to strengthen its global position and improve profitability, targeting growth in high-potential markets like Latin America and India. The company plans to explore AI technologies to create value and protect artists' rights. The film segment anticipates new releases, including a Spider-Man movie and an anime adaptation of "Ghost of Tsushima: Legends," with Crunchyroll expected to be a significant growth driver. Sony's imaging and sensing solutions segment forecasts growth through mobile and automotive sensors, while strategic investments and capital expenditures remain a priority. Despite challenges like U.S. tariffs, Sony plans to manage the impact and continue its growth trajectory, projecting operating income of ¥1,380 billion for FY '25.Sony Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
70
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.14T | 12.96T | 13.02T | 10.97T | 9.92T | 9.00T |
| Gross Profit | 3.76T | 3.68T | 3.34T | 3.24T | 2.70T | 2.43T |
| EBITDA | 2.75T | 1.81T | 1.55T | 2.31T | 1.97T | 1.70T |
| Net Income | -230.22B | 1.14T | 970.57B | 1.01T | 882.18B | 1.03T |
Balance Sheet | ||||||
| Total Assets | 15.90T | 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 | 1.66T | 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 | 8.17T | 8.18T | 7.59T | 6.60T | 5.65T | 6.68T |
Cash Flow | ||||||
| Free Cash Flow | 1.74T | 1.67T | 749.27B | -298.94B | 792.55B | 662.29B |
| Operating Cash Flow | 2.14T | 2.32T | 1.37T | 314.69B | 1.23T | 1.14T |
| Investing Cash Flow | -1.90T | -930.12B | -818.89B | -1.05T | -728.78B | -563.91B |
| Financing Cash Flow | -624.29B | -298.24B | -210.71B | 84.30B | -336.58B | -338.53B |
Sony Group Technical Analysis
Neutral
21.05
Price Trends
21.57
Negative
23.91
Negative
25.46
Negative
Market Momentum
-0.16
Negative
48.80
Neutral
77.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONY, the sentiment is Neutral. The current price of 21.05 is above the 20-day moving average (MA) of 20.77, below the 50-day MA of 21.57, and below the 200-day MA of 25.46, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SONY.
Sony Group Risk Analysis
Sony Group disclosed 22 risk factors in its most recent earnings report. Sony Group reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sony Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.82T | 23.95 | 159.94% | 0.41% | 10.07% | 25.58% | |
64 Neutral | $202.86M | 18.07 | 13.20% | ― | 6.43% | 196.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $1.57B | 5.81 | -4.45% | ― | -4.93% | -59.17% | |
56 Neutral | $127.54B | ― | -2.62% | 0.41% | -11.64% | -116.17% | |
50 Neutral | $4.27B | 26.80 | 3.47% | ― | -3.45% | 82.49% | |
45 Neutral | $128.05M | -2.39 | -102.47% | ― | -27.37% | 70.46% |
* Technology Sector Average
SONY
Sony Group
21.05
-1.81
-7.91%
AAPL
Apple
260.48
58.84
29.18%
GPRO
GoPro
0.77
0.26
50.10%
LPL
LG Display
4.49
1.69
60.36%
TBCH
Turtle Beach
10.35
-0.86
-7.67%
SONO
Sonos
12.97
4.98
62.33%
Sony Group Corporate Events
Sony Completes ¥250 Billion Share Buyback Tranche by March 24, 2026
Mar 25, 2026
Sony Group Corporation has completed a major share repurchase program of its common stock, executed under authorizations from board resolutions adopted on November 11, 2025, February 5, 2026 and February 26, 2026. From March 1 to March 24, 2026, t...
Sony and Honda Scrap AFEELA EV Launch as JV Strategy Comes Under Review
Mar 25, 2026
On March 25, 2026, Sony Group and Honda said their joint venture Sony Honda Mobility would discontinue development and launch of its first AFEELA 1 electric vehicle and a second AFEELA model, after Honda’s March 12, 2026 overhaul of its elec...
Sony Accelerates Share Buybacks and Details Treasury Stock Moves for February 2026
Mar 12, 2026
Sony Group Corporation reported on March 12, 2026 the details of its share repurchase and treasury stock disposition activities for the period from February 1 to February 28, 2026. The disclosure, filed with the Kanto Finance Bureau, outlines prog...
Sony Reports February Progress in Ongoing ¥250 Billion Share Buyback Program
Mar 4, 2026
Sony Group Corporation disclosed the progress of its ongoing share buyback program authorized by its board on November 11, 2025, February 5, 2026, and February 26, 2026. The program is being executed via open market purchases on the Tokyo Stock Ex...
Sony Consolidates Control of Peanuts Holdings With C$630 Million Stake Purchase
Mar 3, 2026
On March 3, 2026, Sony Music Entertainment (Japan) and Sony Pictures Entertainment completed the acquisition of WildBrain’s approximately 41% stake in Peanuts Holdings LLC for about C$630 million, lifting their combined ownership to 80%. Thi...
Sony Group Expands Share Repurchase Facility to ¥250 Billion
Feb 26, 2026
Sony Group Corporation said its board, at meetings on February 5 and February 26, 2026, approved further amendments to an existing share repurchase facility first authorized on November 11, 2025 under Japan’s Companies Act. The company incre...
Sony Group Details January 2026 Share Buybacks and Treasury Stock Movements
Feb 12, 2026
Sony Group Corporation reported details of its common stock buyback and treasury share activity for the period from January 1 to January 31, 2026, as filed with the Kanto Finance Bureau on February 12, 2026. The disclosure shows execution progress...
Sony Group Posts Strong Profit Growth and Higher Equity Ratio After Financial Unit Spin-Off
Feb 5, 2026
On February 5, 2026, Sony Group Corporation reported its consolidated financial results for the nine months ended December 31, 2025, showing modest top-line growth and stronger profitability from continuing operations following the spin-off of its...
Sony Lifts FY2025 Profit Outlook as Q3 Earnings Climb After Financial Services Spin-Off
Feb 5, 2026
On February 5, 2026, Sony Group reported its consolidated financial results for the third quarter of fiscal 2025 for continuing operations, showing sales of ¥3.71 trillion, up 1% year on year, and a 22% rise in operating income to ¥515 b...
Sony Expands Share Buyback Facility to ¥150 Billion
Feb 5, 2026
On February 5, 2026, Sony Group Corporation announced that its board of directors has expanded an existing share repurchase facility originally approved on November 11, 2025, increasing the maximum number of common shares to be repurchased from 35...
Sony Group Announces March 2026 Change in Representative Corporate Executive Officer Role
Feb 5, 2026
Sony Group Corporation announced on February 5, 2026, that its Board of Directors has approved a leadership change in its top executive ranks, reflecting governance continuity as it adjusts its senior management structure. Kenichiro Yoshida, curre...
Sony Updates Share Buyback Progress for January 2026
Feb 4, 2026
Sony disclosed that between January 1 and 31, 2026, it repurchased 4,971,600 common shares on the Tokyo Stock Exchange for ¥19.66 billion under the buyback plan authorized on November 11, 2025, lifting cumulative purchases to 12.1 million sha...
Sony and TCL Plan Global Joint Venture for Home Entertainment Business
Jan 20, 2026
On January 20, 2026, Sony Corporation announced it has signed a memorandum of understanding with TCL Electronics Holdings Limited to pursue a strategic partnership in the home entertainment field, centered on forming a global joint venture that wo...
Sony Details December 2025 Share Buybacks and Treasury Share Dispositions
Jan 14, 2026
Sony Group Corporation reported on January 14, 2026 the status of its share repurchase and treasury share disposition activities for the period from December 1 to December 31, 2025, reflecting ongoing capital management aimed at enhancing sharehol...
Sony Discloses Progress of Share Buyback Program for December 2025
Jan 7, 2026
On January 7, 2026, Sony Group Corporation reported the status of its ongoing share repurchase program authorized by its board on November 11, 2025 under Japan’s Companies Act. During the period from December 1 to December 31, 2025, Sony bou...
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.