Sony Group (6758): Model update: Raising earnings estimates and price target

Research evidence excerpt

Sony Group (6758): Model update: Raising earnings estimates and price target

J P M O R G A N Asia Pacific Equity Research

19 June 2026

Sony Group (6758) Overweight

6758.T, 6758 JP

Model update: Raising earnings estimates and price Price (18 Jun 26):¥3,250

target ▲Price Target (Dec-26):¥5,700 Prior (Dec-26):¥5,300

We revise our earnings forecasts, maintain our Overweight rating, and raise our

price target through end-2026 to ¥5,700 (from ¥5,300). We raise our forecasts, Japan Equity Research

primarily for the game and network services (G&NS) segment and the imaging and Technology - Consumer Electronics/

sensing solutions (I&SS) segment. The former is due to an increase in recurring Industrial Electronics/Precisions

revenue, such as PlayStation (PS) Plus, and the latter to contributions from larger AC Junya Ayada

mobile sensors and a revision of our depreciation forecasts. Despite a favorable (81-3) 6736 8631

earnings outlook, we think the shares could remain weak due to rising memory junya.ayada@jpmorgan.com

costs and concerns about AI. However, we look for a rerating once investors Mio Shikanai

consider the increased likelihood of earnings overshoots based on upcoming (81-3) 6736 1313

results, as well as upside potential during the next medium-term plan (MTP) period mio.shikanai@jpmorgan.com

starting in FY2027. JPMorgan Securities Japan Co., Ltd.

• Earnings forecasts: We forecast operating profit of ¥1,667 billion in FY2026 Key Changes (FYE Mar)

(previously ¥1,570 billion) and ¥1,800 billion in FY2027 (¥1,665 billion), and

Prev Cur Δ

introduce an FY2028 forecast of ¥1,940 billion. We forecast operating profit Adj. EPS - 27E (¥) 200.06 210.76 5.3%

CAGR of 10% during this period. The upward revisions to our FY2026-27 Adj. EPS - 28E (¥) 215.10 233.90 8.7%