Sony expects tariffs to wipe out profit gains this year despite solid growth

Published 14/05/2025, 05:36
Updated 14/05/2025, 05:44
© Reuters.

Investing.com-- Sony Corp (TYO:6758) on Wednesday reported solid full-year results but slashed its forecast for the current year, to reflect the impact of U.S. tariff pressures.

The Japanese conglomerate forecast fiscal 2025 operating income of 1.38 trillion yen ($9.4 billion) for continuing operations—an 8% year-on-year increase—but warned that fresh tariffs could slash 100 billion yen from that figure, leaving profits essentially flat.

Sony (NYSE:SONY)’s operating income excluding financial services jumped 23% to 1.28 trillion yen ($8.7 billion) for the year ended March 31, driven by strong performances in gaming, image sensors, and music streaming. 

However, management highlighted risks from recent U.S. tariff hikes, particularly for its electronics and entertainment businesses.

"We are responding quickly to the additional U.S. tariffs that have already been implemented and are considering responses to multiple possible future scenarios," the company said in a statement.

On a brighter note, the imaging segment—a key supplier for smartphone cameras—projected a 9% sales increase for FY2025, while music streaming revenues continued their steady climb.

Sony also confirmed plans to spin off its financial services unit in October, a move that will simplify its structure but trigger a one-time accounting loss.

Shares of the company rose 4.1% to 3,817 yen as of 04:17 GMT.

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