| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | — | 17.8x | Top tier | |
Growth | 37 | 3.3% | 7.1% | Bottom tier | |
Quality | 50 | 13.4% | 4.5% | Around median | |
Safety | 82 | — | 2.6x | Top tier | |
Capital Return | 4 | — | 2.12% | Bottom tier | |
Momentum | 49 | -16.9% | 2.9% | Around median | |
Sentiment | 34 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sony Group Corporation operates through an interconnected ecosystem spanning games and network services, music, films, anime, electronics, and image sensors. Revenue drivers include the PlayStation platform, software sales, and network services; music recording and publishing; film and television production and Crunchyroll; imaging products and electronics; and smartphone sensors. Management stated in its May 8, 2026 presentation that entertainment, intellectual property, and creative technologies had come to represent 67% of consolidated sales.
In the presentation classified as Q4 FY2026 dated May 8, 2026, Sony reported FY2025 results for continuing operations: sales rose 4% to ¥12.796 trillion, operating income increased 13% to a record ¥1.4475 trillion, equivalent to an operating margin of approximately 11.3%, while net income declined 3% to ¥1.039 trillion. EDGAR data for FY2025 show revenue of 12,957.1 billion, gross profit of 4,452.3 billion, and net income of 1,159.9 billion, implying a gross margin of approximately 34.4% and a net income margin of approximately 9.0% based on the units presented in the source.
The segment mix drove FY2025 performance: Games & Network Services recorded sales of ¥4.6857 trillion and operating income of ¥463.3 billion, Music generated sales of ¥2.1201 trillion and operating income of ¥447 billion, while Imaging & Sensing Solutions sales reached ¥2.0515 trillion with record operating income of ¥357.3 billion. In contrast, Pictures operating income declined 11% to ¥104.9 billion following impairment losses and closure costs, while Entertainment, Technology & Services sales fell 6% to ¥2.265 trillion and operating income declined 17% to ¥158.6 billion.
The analyst consensus is “Buy,” with an average target of $24 and a range of $20.4 to $30; the highest target is close to the 52-week range high of $30.34, while the lowest target is near the range low of $19.32. This dispersion reflects the market's balancing of the raised FY2026 forecast and the strength of Games and sensors on one hand, against memory risks, slowing in some segments, and recorded impairments on the other.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
The main drivers are PlayStation, Music, and image sensors, the segments that generated record profits in FY2025. Sony expects FY2026 operating income of ¥600 billion for Games & Network Services, ¥400 billion for Music, and ¥400 billion for Imaging & Sensing Solutions. On August 11, 2026, the company raised its consolidated operating income forecast by 8% to ¥1.72 trillion. PlayStation's base of approximately 125 million monthly active users in June 2026 also supports recurring digital revenue.
Games & Network Services sales reached ¥4.6857 trillion in FY2025, while operating income reached a record ¥463.3 billion. Cumulative PS5 sales exceeded 93 million units by the end of March 2026, and monthly active users reached 125 million accounts in the same month. Sony plans to leverage SAROS, released in April 2026, and Marvel's Wolverine, scheduled for September 2026, to increase the contribution from first-party games. However, the company recorded a ¥138.4 billion impairment of Bungie assets within non-recurring items after its title portfolio performed below expectations.
On May 8, 2026, the two companies signed a non-binding memorandum of understanding for a partnership to develop and manufacture next-generation image sensors, with Sony set to be the largest and controlling shareholder in the proposed structure. On August 11, 2026, reports indicated a planned $4.69 billion venture and a contribution from Sony of approximately ¥465 billion. The partnership aims to combine Sony's design with TSMC's manufacturing technologies and reduce direct investment in production facilities and equipment procurement costs. It also aims to increase capacity to serve automotive, robotics, and physical AI applications.
Automated analysis for informational purposes only — not investment advice.
Management said on May 8, 2026 that the memory shortage is raising the costs of gaming hardware, smartphones, and other products, and that prices may remain elevated in FY2027. Sony had largely secured the quantities needed for gaming hardware during 2026 and was not planning another PS5 price increase according to the same presentation. In the Entertainment, Technology & Services segment, the company aims to limit the impact of higher memory prices to approximately ¥30 billion in FY2026. In sensors, it included a slight decline in smartphone sensor sales in its forecast due to weakness in the low-end market and a slower transition to larger sizes.
Sony Pictures invested more than $50 million in capabilities including production planning, content protection, data analysis, and 3D conversion. In PlayStation, the company said that AI-driven payment routing generated more than $700 million in additional revenue during the three years preceding the May 8, 2026 presentation. Studios use tools to accelerate facial and hair animation and quality assurance, while PlayStation Spectral Super Resolution technology in PS5 Pro provides 4K images and high frame rates. At the same time, management acknowledges that the increase in AI-generated content could intensify competition for users' time and disrupt entertainment models.
