Jun-Q Results: Earnings Solid Even Excluding Tariff Refund and Yen Depreciation Benefits

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M

Update

July 31, 2026 03:37 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Sony Group (6758) | Japan

Kazuo Yoshikawa, CFA

Equity Analyst

Jun-Q Results: Earnings Solid

Even Excluding Tariff Refund

and Yen Depreciation Benefits

AlphaSignals Earnings Reaction

Hidetaka Suzuki

Research Associate

Sony Group (6758.T, 6758 JT)

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

1Q (Jun-Q) results: 1Q operating profit was ¥476.5bn, above our forecast of

¥360.0bn. Earnings were supported by yen depreciation, which contributed around

¥52.0bn YoY, and the impact of a US tariff refund, which we estimate at around

¥55.0bn based on company comments.

Game business: Monthly active users were 125mn accounts, marking the 14th

Consumer Electronics | Japan

Stock Rating

Industry View

Price target

Shr price, close (Jul 31, 2026)

Mkt cap, curr, basic (bn)

DPS (03/27e)

ROE (03/27e) (%)*

P/BV, basic (03/27e)

P/E, basic (03/27e)*

EV/EBITDA, basic (03/27e)

Overweight

In-Line

¥4,700

¥3,787

¥22,372.3

¥35.0

16.0

2.5

17.0

4.9

* = GAAP or approximated based on GAAP

consecutive quarter of YoY growth. We estimate that margin remained stable

excluding the impact of the US tariff refund and yen depreciation. While there are

investments for the next-generation platform and structural reform costs, we

believe cost control through data utilization has contributed.

Imaging & Sensing Solutions: Jun-Q constant-currency revenue growth was 16%,

marking the fifth consecutive quarter of positive growth. Operating margin

improved even excluding the yen depreciation benefit, likely supported by higher

revenue and lower fixed-cost burden.

FY3/27 outlook: Assuming a USD/JPY rate of ¥153, the company raised its FY3/27

full-year operating profit guidance from ¥1.60tn to ¥1.72tn. Of this, around ¥80.0bn

reflects the US tariff refund. Other factors contributing to the upward revision

include cost improvements in Game, yen depreciation, and the consolidation of

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