Sony reported ¥515B Q3 profit, up 22% and above analyst estimates.

Sony reported a ¥515 billion operating profit for the December quarter, beating analyst estimates of ¥468.9 billion by a wide margin. That’s a 22% increase compared to last year, reversing the dip it took in the previous quarter.

Total revenue came in at ¥3.71 trillion or $23.68 billion, just slightly above forecasts of ¥3.69 trillion. The stronger result was helped by favorable foreign exchange rates, even though memory chip prices were climbing fast.

The company raised its full-year operating profit forecast to ¥1.54 trillion, up by ¥110 billion, or 8% from the previous projection. Annual revenue guidance was also bumped by ¥300 billion to ¥12.3 trillion, now expecting a 3% rise. But despite the optimism, Sony stuck to its ¥50 billion estimate for losses from U.S. tariffs, with no adjustments made.

Game and network sales drop as chip costs rise

Sony’s game and network services division, which includes PlayStation, pulled in ¥1.613 trillion in sales, down ¥68.7 billion from last year. While digital game downloads and PlayStation Plus subscriptions were still doing well, console hardware shipments didn’t keep up.

“Hardware growth has been limited,” the company admitted, pointing to a tight supply of DRAM chips, the memory tech used inside PlayStations. These chips are getting harder to source thanks to massive demand from AI systems and data centers.

A report from TrendForce had said that DRAM prices are set to jump 90% to 95% this quarter compared to the last one. One chip industry CEO told CNBC that shortages could last until 2027.

Despite those issues, Sony did report a small gain in game sales over nine months, from ¥3.498 trillion to ¥3.558 trillion, a ¥60.5 billion increase.

Music and imaging divisions carry growth

Outside gaming, things looked better. The music division saw a strong quarter, with revenue up 12.6% from a year ago.

Total sales rose to ¥1.55 trillion, a ¥178.2 billion jump. Sony credited this to live shows, merchandise, and streaming platforms, which are pulling in more money than before.

The imaging and sensing solutions unit, which builds semiconductor-based sensors, posted a 20%+ gain in revenue.

From customer sales alone, revenue jumped from ¥1.324 trillion to ¥1.555 trillion, an increase of ¥231 billion. Total segment sales, including internal, hit ¥1.627 trillion, up ¥237 billion. This part of the business is riding demand from industrial and consumer electronics sectors.

By comparison, the pictures division saw revenue fall from ¥1.091 trillion to ¥1.026 trillion, a ¥65 billion drop. Same goes for entertainment, tech, and services, which fell ¥157 billion year-over-year.

Total consolidated revenue across all units rose ¥213.2 billion, reaching ¥9.44 trillion for the nine months ending in December.

On the balance sheet, current assets dropped sharply. Cash and equivalents fell by ¥894.5 billion from March to December 2025. Total current assets went from ¥7.45 trillion down to ¥6.29 trillion.

Major declines also came from the financial services segment, where investments and advances disappeared from the books, plunging from ¥18.7 trillion to zero.

That alone explains the massive ¥19.4 trillion drop in total assets, from ¥35.3 trillion down to ¥15.88 trillion. Non-current assets like property, goodwill, and content assets either held steady or rose.

Notably, content assets jumped ¥317 billion, showing Sony is investing more in owned IP. Goodwill also rose ¥92.9 billion, possibly from acquisitions.