Sony shares rise in choppy trade as PlayStation maker announces $1.7 billion share buyback

Sony Group shares rose over 3.5% on Wednesday in volatile trading after the Japanese conglomerate announced a share buyback of up to 250 billion yen ($1.7 billion) and operating income beat estimates.   

Operating income for the last three months of the financial year came in at 203.6 billion yen, beating mean analyst estimates from LSEG of 192.2 billion yen, though it was down 11% from the same period last year. 

In the earnings report, the Japanese-based electronics, entertainment and finance company announced a stock buyback of shares capped at 250 billion yen. 

Sony also provided details on a partial spinoff of its financial unit. The company plans to distribute slightly more than 80% of the shares of common stock of the spinoff to shareholders of Sony Group through dividends. 

The financial unit will list its financial operation this year and will be classified as a discontinued operation in Sony’s accounting from the current quarter, the company added. 

However, Sony’s outlook for the current financial year ending in March 2026 was lackluster.

The company forecast its operating profit to rise 0.3% to 1.28 trillion yen, after flagging a 100 billion yen hit from U.S. President Donald Trump’s trade war. This was below the mean analyst estimate of 1.5 trillion yen.

Sony noted that its estimated tariff impact did not reflect the trade deal made between the U.S. and China on Monday and that the actual impact could vary significantly. 

The U.S. agreed to temporarily reduce tariffs on China to 30%, down from 145%, while Beijing said it will lower tariffs on U.S. goods to 10% from 125%.

In an earnings call on Wednesday, a Sony executive said that the company would manage the impact of tariffs by “stockpiling strategic inventory in the U.S., adjusting product shipment allocation on a global basis, and raising prices on certain products with an eye on market trends and other means.”

Sony had hiked the price of its PlayStation 5 gaming console in Europe, Australia and New Zealand in April, citing a “challenging economic environment,” including high inflation and fluctuating exchange rates.

Sony — which grew to prominence in the 1980s for consumer electronics products like the Walkman — has expanded its offerings into entertainment, including movies, music and gaming consoles like its popular PlayStation.

President of Sony Group Hiroki Totoki, who also took on the role as CEO at the start of the year, said on the earnings call that Sony’s entertainment business accounted for roughly 61% of consolidated sales in the quarter and that the company would continue to focus on expanding this segment.

The company would also double down on increasing active users and per-user spend for its PlayStation 5 console, Totoki said, which would drive steady profit.