Sony Group (SONY) shares surged 5.01% in pre-market trading on Tuesday following the release of its better-than-expected fiscal second-quarter 2025 results and an upward revision of its full-year guidance. The Japanese electronics and entertainment giant also announced a new share repurchase program, further boosting investor confidence.
The company reported earnings of 51.71 yen ($0.34) per share for the quarter ended September 30, surpassing analyst expectations of 49.04 yen. Revenue climbed to 3.108 trillion yen ($21.09 billion), a 5% year-over-year increase that beat the consensus estimate of 2.985 trillion yen. Sony's operating profit rose 10% to 429 billion yen, significantly exceeding analysts' projections of 398.4 billion yen.
Sony's strong performance was driven by several factors. The company's music and image sensor businesses showed robust growth, with the music segment's profit jumping 27.65% year-over-year to 115.4 billion yen. The imaging and sensing solutions unit saw its operating profit soar by nearly 50% to 138.3 billion yen, becoming the quarter's top-performing division. The success of the animated movie "Demon Slayer: Kimetsu no Yaiba Infinity Castle" also contributed to the entertainment segment's strong results. Additionally, Sony sold 3.9 million PlayStation 5 consoles during the quarter, slightly up from 3.8 million in the same period last year, despite recent price increases.
In light of these positive results, Sony raised its full-year operating profit forecast by 8% to 1.43 trillion yen ($9.5 billion). The company also increased its annual revenue projection by 300 billion yen, now expecting full-year sales of 12 trillion yen. Sony cited a smaller-than-anticipated impact from U.S. tariffs, revising its estimated tariff-related losses down to 50 billion yen from the previous 70 billion yen forecast.
Further boosting investor sentiment, Sony announced a new share buyback program of up to 100 billion yen (approximately $648 million). The company plans to repurchase up to 35 million shares, or about 0.6% of its outstanding stock, between November 12, 2025, and May 14, 2026.
The combination of strong quarterly results, improved guidance, and the share repurchase announcement has clearly resonated with investors, driving the significant pre-market stock price increase. As global markets open, all eyes will be on Sony to see if this positive momentum continues throughout the trading session.