SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July 2026
Commission File Number: 001-06439
SONY GROUP CORPORATION
(Translation of registrant’s name into English)
1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN
(Address of principal executive offices)
The registrant files annual reports under cover of Form 20-F.
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,
| Form 20-F x | Form 40-F ¨ |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
SONY GROUP CORPORATION (Registrant) |
||
| By: | /s/ Lin Tao | |
| (Signature) | ||
| Lin Tao | ||
| Chief Financial Officer | ||
Date: July 31, 2026
List of Materials
Documents attached hereto:
Consolidated Financial Summary for the First Quarter Ended June 30, 2026
Consolidated Financial Summary for the First Quarter Ended June 30, 2026
(In accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”))
| July 31, 2026 | ||
| Company name | : | Sony Group Corporation |
| Stock exchange listing | : | Tokyo Stock Exchange (“TSE”) |
| Securities code | : | 6758 |
| URL | : | https://www.sony.com/en/SonyInfo/IR/ |
| Representative | : | Hiroki Totoki, Representative Corporate Executive Officer |
| Contact person | : | Shunsuke Shinchi, General Manager, Investor Relations Section, Investor Relations Department |
| Telephone | : | +81-3-6748-2111 |
| Scheduled date to commence dividend payment | : | - |
| Preparation of supplementary materials on financial results | : | Yes |
| Holding of financial results briefing | : | Yes (for investors and analysts) |
(Amounts are rounded to the nearest million yen, unless otherwise noted.)
1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026)
| (1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) |
| Sales | Operating income | Income
before income taxes |
Net income* | Net
income attributable to Sony Group Corporation’s stockholders* |
|||||||||||||||||||||||||||||
| Three months ended | Yen in millions | % | Yen in millions | % | Yen in millions | % | Yen in millions | % | Yen in millions | % | |||||||||||||||||||||||
| June 30, 2026 | 2,837,771 | 8.2 | 476,499 | 40.2 | 477,491 | 33.9 | 350,007 | 33.2 | 342,161 | 32.1 | |||||||||||||||||||||||
| June 30, 2025 | 2,621,615 | 2.2 | 339,955 | 36.5 | 356,601 | 24.3 | 262,820 | 22.6 | 259,027 | 23.3 | |||||||||||||||||||||||
| Total comprehensive income* |
Basic earnings per share* |
Diluted earnings per share* |
||||||||||||||
| Three months ended | Yen in millions | % | Yen | Yen | ||||||||||||
| June 30, 2026 | 447,306 | 87.6 | 58.07 | 57.82 | ||||||||||||
| June 30, 2025 | 238,401 | -45.6 | 43.08 | 42.84 | ||||||||||||
| * | Effective October 1, 2025, Sony Group Corporation executed a partial spin-off of Sony Financial Group Inc. (“SFGI”), a formerly wholly-owned subsidiary which operates the Financial Services business (the “Spin-off”). As a result of the resolution of Sony Group Corporation’s Board of Directors on May 14, 2025 on a plan for the execution of the Spin-off, the Financial Services business has been classified as a discontinued operation and presented separately from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, from the three months ended June 30, 2025, in accordance with IFRS Accounting Standards. Therefore, the above figures for net income, net income attributable to Sony Group Corporation’s stockholders, total comprehensive income, basic earnings per share and diluted earnings per share for the three months ended June 30, 2025 represent the results for continuing operations. The year-on-year percentage changes of net income, net income attributable to Sony Group Corporation’s stockholders and total comprehensive income for the three months ended June 30, 2026 are calculated using the figures for continuing operations for the three months ended June 30, 2025. As net income (loss) from discontinued operations was not recorded in the three months ended June 30, 2026, there is no difference between the figures for continuing operations and the consolidated figures for the three months ended June 30, 2026. For details of discontinued operations, please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations)” on page 13 of the Appendix. |
(2) Consolidated financial position
| Total assets | Total equity | Equity attributable
to Sony Group Corporation’s stockholders |
Ratio of equity
attributable to Sony Group Corporation’s stockholders to total assets |
|||||||||||||
| As of | Yen in millions | Yen in millions | Yen in millions | % | ||||||||||||
| June 30, 2026 | 16,047,302 | 8,774,938 | 8,369,259 | 52.2 | ||||||||||||
| March 31, 2026 | 15,683,490 | 8,513,589 | 8,119,011 | 51.8 | ||||||||||||
2. Dividends
| Annual dividends per share | ||||||||||||||||||||
| First quarter-end | Second quarter-end | Third quarter-end | Year-end | Total | ||||||||||||||||
| Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
| Fiscal year ended March 31, 2026* | - | 12.50 | - | 12.50 | 25.00 | |||||||||||||||
| Fiscal year ending March 31, 2027 | - | |||||||||||||||||||
| Fiscal year ending March 31, 2027 (Forecast) | 17.50 | - | 17.50 | 35.00 | ||||||||||||||||
Note: Revisions to the forecast of dividends most recently announced: No
| * | Upon the execution of the above-mentioned Spin-off, Sony Group Corporation distributed dividends in kind to shareholders appearing in its register of shareholders as of the record date, September 30, 2025, at the rate of one share of common stock of SFGI to one share of common stock of Sony Group Corporation held by each shareholder. However, the above dividends for the fiscal year ended March 31, 2026 do not include such dividends in kind. |
3. Forecast for Consolidated Results for the Fiscal Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027)
| (Percentages indicate year-on-year changes.) |
| Fiscal year ending March 31, 2027 |
Sales | Operating income | Income before income taxes | Net income attributable to Sony Group Corporation’s stockholders* |
||||||||||||||||||||||||||||
| Yen in millions | % | Yen in millions | % | Yen in millions | % | Yen in millions | % | |||||||||||||||||||||||||
| Full year | 12,500,000 | 0.2 | 1,720,000 | 18.8 | 1,710,000 | 20.2 | 1,210,000 | 17.4 | ||||||||||||||||||||||||
Notes:
| 1 | Revisions to the forecast for the fiscal year ending March 31, 2027 most recently announced: Yes |
| 2 | The impact of the 2026 Kumamoto Earthquake, which occurred on July 28, 2026, on Sony Group Corporation’s consolidated financial results has not been incorporated into the above results forecast, as it is currently difficult to reasonably estimate such impact. |
| * | The year-on-year percentage change of net income attributable to Sony Group Corporation’s stockholders is calculated using net income from continuing operations attributable to Sony Group Corporation’s stockholders for the fiscal year ended March 31, 2026. As net income (loss) from discontinued operations is not expected to be incurred in the fiscal year ending March 31, 2027, there is no difference between the figure for net income attributable to Sony Group Corporation’s stockholders for continuing operations and the consolidated figure in the forecast for the fiscal year ending March 31, 2027. |
* Notes
| (1) | Significant changes in scope of consolidation during the period | : No |
| (2) | Changes in accounting policies and changes in accounting estimates: |
| (i) | Changes in accounting policies required by IFRS Accounting Standards | : Yes | |
| (ii) | Changes in accounting policies due to other reasons | : No | |
| (iii) | Changes in accounting estimates | : No |
| (3) | Number of issued shares (common stock): |
| (i) | Total number of issued shares at the end of the period (including treasury stock) | |
| As of June 30, 2026 | 5,965,316,326 | shares |
| As of March 31, 2026 | 6,149,810,645 | shares |
| (ii) | Number of shares of treasury stock at the end of the period | |
| As of June 30, 2026 | 92,854,256 | shares |
| As of March 31, 2026 | 242,143,391 | shares |
| (iii) | Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) | |
| Three months ended June 30, 2026 | 5,891,838,291 | shares |
| Three months ended June 30, 2025 | 6,013,191,432 | shares |
| Note: |
Please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)” on page 12 of the Appendix for number of shares used as basis for calculating consolidated per share data.
| * | Review of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: No |
| * | Proper use of earnings forecasts, and other special matters: |
| Please refer to “Cautionary Statement” on page 15 of the Appendix for assumptions and other matters related to the forecast of financial results. | |
| Supplementary materials on financial results including the presentation material for the earnings announcement are available on Sony Group Corporation’s website along with this document. | |
(Appendix)
Table of Contents for Appendix
All financial information is presented on the basis of IFRS Accounting Standards.
Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group.”
- 1 -
(Unaudited)
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statements of Financial Position
| Yen in millions | ||||||||||||
|
March 31, 2026 |
June 30, 2026 |
Change from March 31, 2026 |
||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 2,208,879 | 2,170,019 | (38,860 | ) | ||||||||
| Trade and other receivables, and contract assets | 1,821,916 | 1,852,291 | 30,375 | |||||||||
| Inventories | 1,227,351 | 1,365,079 | 137,728 | |||||||||
| Other financial assets | 28,167 | 31,870 | 3,703 | |||||||||
| Other current assets | 663,678 | 703,239 | 39,561 | |||||||||
| Total current assets | 5,949,991 | 6,122,498 | 172,507 | |||||||||
| Non-current assets: | ||||||||||||
| Investments accounted for using the equity method | 483,709 | 349,528 | (134,181 | ) | ||||||||
| Property, plant and equipment | 1,453,805 | 1,417,753 | (36,052 | ) | ||||||||
| Right-of-use assets | 524,345 | 560,746 | 36,401 | |||||||||
| Goodwill | 1,673,906 | 1,701,706 | 27,800 | |||||||||
| Content assets | 2,558,615 | 2,664,749 | 106,134 | |||||||||
| Other intangible assets | 659,578 | 668,525 | 8,947 | |||||||||
| Deferred tax assets | 560,800 | 566,658 | 5,858 | |||||||||
| Other financial assets | 1,173,819 | 1,330,644 | 156,825 | |||||||||
| Other non-current assets | 644,922 | 664,495 | 19,573 | |||||||||
| Total non-current assets | 9,733,499 | 9,924,804 | 191,305 | |||||||||
| Total assets | 15,683,490 | 16,047,302 | 363,812 | |||||||||
(Continued on the following page.)
- 2 -
Condensed Quarterly Consolidated Statements of Financial Position (Continued)
| Yen in millions | ||||||||||||
| March 31, 2026 |
June 30, 2026 |
Change from March 31, 2026 |
||||||||||
| LIABILITIES | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | 51,183 | 49,836 | (1,347 | ) | ||||||||
| Lease liabilities | 94,160 | 97,351 | 3,191 | |||||||||
| Current portion of long-term debt | 166,410 | 160,633 | (5,777 | ) | ||||||||
| Trade and other payables | 2,240,566 | 2,228,109 | (12,457 | ) | ||||||||
| Income taxes payable | 196,000 | 188,710 | (7,290 | ) | ||||||||
| Participation and residual liabilities in the Pictures segment | 223,233 | 211,162 | (12,071 | ) | ||||||||
| Contract liabilities | 594,336 | 690,425 | 96,089 | |||||||||
| Other financial liabilities | 115,785 | 62,067 | (53,718 | ) | ||||||||
| Other current liabilities | 1,350,951 | 1,228,567 | (122,384 | ) | ||||||||
| Total current liabilities | 5,032,624 | 4,916,860 | (115,764 | ) | ||||||||
| Non-current liabilities: | ||||||||||||
| Long-term debt | 824,393 | 993,702 | 169,309 | |||||||||
| Lease liabilities | 533,523 | 569,076 | 35,553 | |||||||||
| Defined benefit liabilities | 165,017 | 163,004 | (2,013 | ) | ||||||||
| Deferred tax liabilities | 211,391 | 234,208 | 22,817 | |||||||||
| Participation and residual liabilities in the Pictures segment | 140,893 | 131,601 | (9,292 | ) | ||||||||
| Other financial liabilities | 105,827 | 107,541 | 1,714 | |||||||||
| Other non-current liabilities | 156,233 | 156,372 | 139 | |||||||||
| Total non-current liabilities | 2,137,277 | 2,355,504 | 218,227 | |||||||||
| Total liabilities | 7,169,901 | 7,272,364 | 102,463 | |||||||||
| EQUITY | ||||||||||||
| Sony Group Corporation’s stockholders’ equity: | ||||||||||||
| Common stock | 881,357 | 881,357 | - | |||||||||
| Additional paid-in capital | 1,465,499 | 894,947 | (570,552 | ) | ||||||||
| Retained earnings | 5,294,890 | 5,560,069 | 265,179 | |||||||||
| Accumulated other comprehensive income | 1,229,371 | 1,329,016 | 99,645 | |||||||||
| Treasury stock, at cost | (752,106 | ) | (296,130 | ) | 455,976 | |||||||
| Equity attributable to Sony Group Corporation’s stockholders | 8,119,011 | 8,369,259 | 250,248 | |||||||||
| Noncontrolling interests | 394,578 | 405,679 | 11,101 | |||||||||
| Total equity | 8,513,589 | 8,774,938 | 261,349 | |||||||||
| Total liabilities and equity | 15,683,490 | 16,047,302 | 363,812 | |||||||||
- 3 -
Condensed Quarterly Consolidated Statements of Income
| Yen in millions | ||||||||||||
| Three months ended June 30 | ||||||||||||
| 2025 | 2026 | Change | ||||||||||
| Continuing operations | ||||||||||||
| Sales | 2,621,615 | 2,837,771 | 216,156 | |||||||||
| Costs and expenses: | ||||||||||||
| Cost of sales | 1,775,067 | 1,796,292 | 21,225 | |||||||||
| Selling, general and administrative | 514,802 | 568,373 | 53,571 | |||||||||
| Other operating (income) expense, net | (9,920 | ) | (1,387 | ) | 8,533 | |||||||
| Total costs and expenses | 2,279,949 | 2,363,278 | 83,329 | |||||||||
| Share of profit (loss) of investments accounted for using the equity method | (1,711 | ) | 2,006 | 3,717 | ||||||||
| Operating income | 339,955 | 476,499 | 136,544 | |||||||||
| Financial income | 51,654 | 24,464 | (27,190 | ) | ||||||||
| Financial expenses | 35,008 | 23,472 | (11,536 | ) | ||||||||
| Income before income taxes | 356,601 | 477,491 | 120,890 | |||||||||
| Income taxes | 93,781 | 127,484 | 33,703 | |||||||||
| Net income from continuing operations | 262,820 | 350,007 | 87,187 | |||||||||
| Discontinued operations | ||||||||||||
| Net income (loss) from discontinued operations | (22,118 | ) | - | 22,118 | ||||||||
| Net income | 240,702 | 350,007 | 109,305 | |||||||||
| Net income attributable to | ||||||||||||
| Sony Group Corporation’s stockholders | 236,909 | 342,161 | 105,252 | |||||||||
| Net income from continuing operations | 259,027 | 342,161 | 83,134 | |||||||||
| Net income (loss) from discontinued operations | (22,118 | ) | - | 22,118 | ||||||||
| Noncontrolling interests | 3,793 | 7,846 | 4,053 | |||||||||
| Yen | ||||||||||||
| Three months ended June 30 | ||||||||||||
| 2025 | 2026 | Change | ||||||||||
| Per share data: | ||||||||||||
| Net income (loss) attributable to Sony Group Corporation’s stockholders | ||||||||||||
| - Basic | 39.40 | 58.07 | 18.67 | |||||||||
| Continuing operations | 43.08 | 58.07 | 14.99 | |||||||||
| Discontinued operations | (3.68 | ) | - | 3.68 | ||||||||
| - Diluted | 39.18 | 57.82 | 18.64 | |||||||||
| Continuing operations | 42.84 | 57.82 | 14.98 | |||||||||
| Discontinued operations | (3.66 | ) | - | 3.66 | ||||||||
- 4 -
Condensed Quarterly Consolidated Statements of Comprehensive Income
| Yen in millions | ||||||||||||
| Three months ended June 30 | ||||||||||||
| 2025 | 2026 | Change | ||||||||||
| Net income | 240,702 | 350,007 | 109,305 | |||||||||
| Other comprehensive income, net of tax - | ||||||||||||
| Items that will not be reclassified to profit or loss | ||||||||||||
| Changes in equity instruments measured at fair value through other comprehensive income | (802 | ) | (11,015 | ) | (10,213 | ) | ||||||
| Remeasurement of defined benefit pension plans | 0 | (1,655 | ) | (1,655 | ) | |||||||
| Share of other comprehensive income of investments accounted for using the equity method | (41 | ) | 104 | 145 | ||||||||
| Other comprehensive income from discontinued operations | (16 | ) | - | 16 | ||||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||||||
| Cash flow hedges | (944 | ) | 1,559 | 2,503 | ||||||||
| Exchange differences on translating foreign operations | (22,301 | ) | 81,365 | 103,666 | ||||||||
| Share of other comprehensive income of investments accounted for using the equity method | (331 | ) | 26,941 | 27,272 | ||||||||
| Other comprehensive income from discontinued operations | 53,302 | - | (53,302 | ) | ||||||||
| Total other comprehensive income, net of tax | 28,867 | 97,299 | 68,432 | |||||||||
| Comprehensive income | 269,569 | 447,306 | 177,737 | |||||||||
| Total Comprehensive income | ||||||||||||
| Comprehensive income from continuing operations | 238,401 | 447,306 | 208,905 | |||||||||
| Comprehensive income from discontinued operations | 31,168 | - | (31,168 | ) | ||||||||
| Comprehensive income attributable to | ||||||||||||
| Sony Group Corporation’s stockholders | 266,888 | 438,670 | 171,782 | |||||||||
| Comprehensive income from continuing operations | 235,720 | 438,670 | 202,950 | |||||||||
| Comprehensive income from discontinued operations | 31,168 | - | (31,168 | ) | ||||||||
| Noncontrolling interests | 2,681 | 8,636 | 5,955 | |||||||||
- 5 -
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity
| Yen in millions | ||||||||||||||||||||||||||||||||||||
| Common stock |
Additional paid-in capital |
Retained
earnings |
Accumulated
other comprehensive income |
Accumulated other comprehensive income directly related to disposal groups classified as held for distribution to owners |
Treasury
stock, at cost |
Sony
Group Corporation’s stockholders’ equity |
Noncontrolling
interests |
Total equity | ||||||||||||||||||||||||||||
| Balance at April 1, 2025 | 881,357 | 1,483,527 | 6,678,168 | (566,447 | ) | - | (296,860 | ) | 8,179,745 | 330,406 | 8,510,151 | |||||||||||||||||||||||||
| Comprehensive income: | ||||||||||||||||||||||||||||||||||||
| Net income | 236,909 | 236,909 | 3,793 | 240,702 | ||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | (57,601 | ) | 87,580 | 29,979 | (1,112 | ) | 28,867 | |||||||||||||||||||||||||||||
| Total comprehensive income | 236,909 | (57,601 | ) | 87,580 | 266,888 | 2,681 | 269,569 | |||||||||||||||||||||||||||||
| Transfer to retained earnings | 604 | (619 | ) | 15 | - | - | ||||||||||||||||||||||||||||||
| Transactions with stockholders and other: | ||||||||||||||||||||||||||||||||||||
| Stock issued under stock-based compensation transactions | 491 | 12,466 | 12,957 | 12,957 | ||||||||||||||||||||||||||||||||
| Compensation expenses related to stock-based compensation transactions | 4,662 | 4,662 | 4,662 | |||||||||||||||||||||||||||||||||
| Dividends declared | (60,250 | ) | (60,250 | ) | (18,283 | ) | (78,533 | ) | ||||||||||||||||||||||||||||
| Purchase of treasury stock | (93,339 | ) | (93,339 | ) | (93,339 | ) | ||||||||||||||||||||||||||||||
| Reissuance of treasury stock | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Transfer to held for distribution to owners | 1,447,112 | (1,447,112 | ) | - | - | |||||||||||||||||||||||||||||||
| Transactions with noncontrolling interests shareholders and other | (20,260 | ) | 5,209 | (15,051 | ) | (22,739 | ) | (37,790 | ) | |||||||||||||||||||||||||||
| Balance at June 30, 2025 | 881,357 | 1,468,420 | 6,855,431 | 827,654 | (1,359,517 | ) | (377,733 | ) | 8,295,612 | 292,065 | 8,587,677 | |||||||||||||||||||||||||
| Yen in millions | ||||||||||||||||||||||||||||||||
| Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated
other comprehensive income |
Treasury
stock, at cost |
Sony
Group Corporation’s stockholders’ equity |
Noncontrolling
interests |
Total equity | |||||||||||||||||||||||||
| Balance at April 1, 2026 | 881,357 | 1,465,499 | 5,294,890 | 1,229,371 | (752,106 | ) | 8,119,011 | 394,578 | 8,513,589 | |||||||||||||||||||||||
| Comprehensive income: | ||||||||||||||||||||||||||||||||
| Net income | 342,161 | 342,161 | 7,846 | 350,007 | ||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | 96,509 | 96,509 | 790 | 97,299 | ||||||||||||||||||||||||||||
| Total comprehensive income | 342,161 | 96,509 | 438,670 | 8,636 | 447,306 | |||||||||||||||||||||||||||
| Transfer to retained earnings | (3,136 | ) | 3,136 | - | - | |||||||||||||||||||||||||||
| Transactions with stockholders and other: | ||||||||||||||||||||||||||||||||
| Stock issued under stock-based compensation transactions | (1,015 | ) | 5,889 | 4,874 | 4,874 | |||||||||||||||||||||||||||
| Compensation expenses related to stock-based compensation transactions | 6,832 | 6,832 | 6,832 | |||||||||||||||||||||||||||||
| Dividends declared | (73,846 | ) | (73,846 | ) | (4,505 | ) | (78,351 | ) | ||||||||||||||||||||||||
| Purchase of treasury stock | (127,480 | ) | (127,480 | ) | (127,480 | ) | ||||||||||||||||||||||||||
| Reissuance of treasury stock | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
| Cancellation of treasury stock | (577,567 | ) | 577,567 | - | - | |||||||||||||||||||||||||||
| Transactions with noncontrolling interests shareholders and other | 1,198 | 1,198 | 6,970 | 8,168 | ||||||||||||||||||||||||||||
| Balance at June 30, 2026 | 881,357 | 894,947 | 5,560,069 | 1,329,016 | (296,130 | ) | 8,369,259 | 405,679 | 8,774,938 | |||||||||||||||||||||||
- 6 -
Condensed Quarterly Consolidated Statements of Cash Flows
| Yen in millions | ||||||||
| Three months ended June 30 | ||||||||
| 2025 | 2026 | |||||||
| Cash flows from operating activities: | ||||||||
| Income before income taxes from continuing operations | 356,601 | 477,491 | ||||||
| Adjustments to reconcile income before income taxes from continuing operations to net cash provided by operating activities: | ||||||||
| Depreciation and amortization, including amortization of contract costs | 274,399 | 250,797 | ||||||
| Other operating (income) expense, net | (9,920 | ) | (1,387 | ) | ||||
| Gain on securities, net | (30,092 | ) | (141 | ) | ||||
| Share of loss of investments accounted for using the equity method, net of dividends | 7,689 | 9,686 | ||||||
| Changes in assets and liabilities: | ||||||||
| (Increase) decrease in trade receivables and contract assets | 105,820 | (8,102 | ) | |||||
| Increase in inventories | (156,435 | ) | (129,406 | ) | ||||
| Increase in content assets | (148,883 | ) | (160,821 | ) | ||||
| Increase in trade payables | 90,138 | 19,055 | ||||||
| Increase in taxes payable other than income taxes, net | 8,260 | 34,244 | ||||||
| Increase in other financial assets and other current assets | (54,560 | ) | (43,013 | ) | ||||
| Decrease in other financial liabilities and other current liabilities | (187,582 | ) | (90,994 | ) | ||||
| Income taxes paid | (53,374 | ) | (129,121 | ) | ||||
| Other | 51,820 | (30,853 | ) | |||||
| Total net cash provided by operating activities from continuing operations | 253,881 | 197,435 | ||||||
| Net cash used in operating activities from discontinued operations | (176,552 | ) | - | |||||
| Net cash provided by operating activities | 77,329 | 197,435 | ||||||
(Continued on the following page.)
- 7 -
Condensed Quarterly Consolidated Statements of Cash Flows (Continued)
| Yen in millions | ||||||||
| Three months ended June 30 | ||||||||
| 2025 | 2026 | |||||||
| Cash flows from investing activities: | ||||||||
| Payments for property, plant and equipment and other intangible assets | (120,094 | ) | (137,870 | ) | ||||
| Proceeds from sales of property, plant and equipment and other intangible assets | 1,809 | 4,862 | ||||||
| Payments for investments and advances | (36,683 | ) | (52,061 | ) | ||||
| Proceeds from sales or return of investments and collections of advances | 4,415 | 7,140 | ||||||
| Payments for purchases of businesses and other | (12,217 | ) | (14,938 | ) | ||||
| Proceeds from sales of businesses | - | 14,632 | ||||||
| Other | 74 | 1,452 | ||||||
| Total net cash used in investing activities from continuing operations | (162,696 | ) | (176,783 | ) | ||||
| Net cash used in investing activities from discontinued operations | (10,622 | ) | - | |||||
| Net cash used in investing activities | (173,318 | ) | (176,783 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Decrease in short-term borrowings, net | (46 | ) | (1,454 | ) | ||||
| Proceeds from issuance of long-term debt | 5,792 | 168,017 | ||||||
| Payments of long-term debt | (3,361 | ) | (10,710 | ) | ||||
| Payments of lease liabilities | (21,706 | ) | (24,970 | ) | ||||
| Dividends paid | (59,870 | ) | (73,426 | ) | ||||
| Payments for purchases of treasury stock | (93,339 | ) | (127,480 | ) | ||||
| Other | (37,371 | ) | (16,605 | ) | ||||
| Total net cash used in financing activities from continuing operations | (209,901 | ) | (86,628 | ) | ||||
| Net cash used in financing activities from discontinued operations | (2,718 | ) | - | |||||
| Net cash used in financing activities | (212,619 | ) | (86,628 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (45,854 | ) | 27,116 | |||||
| Net decrease in cash and cash equivalents | (354,462 | ) | (38,860 | ) | ||||
| Cash and cash equivalents at beginning of the fiscal year | 2,980,956 | 2,208,879 | ||||||
| Cash and cash equivalents at end of the period | 2,626,494 | 2,170,019 | ||||||
| Cash and cash equivalents included in assets held for distribution to owners | 1,026,385 | - | ||||||
| Cash and cash equivalents in the Condensed Quarterly Consolidated Statements of Financial Position | 1,600,109 | 2,170,019 | ||||||
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Notes to Condensed Quarterly Consolidated Financial Statements
(Business Segments)
Segment sales
| Yen in millions | ||||||||||||
| Three months ended June 30 | ||||||||||||
| 2025 | 2026 | Change | ||||||||||
| Sales: | ||||||||||||
| Game & Network Services - | ||||||||||||
| Customers | 912,810 | 915,846 | 3,036 | |||||||||
| Intersegment | 23,723 | 21,277 | (2,446 | ) | ||||||||
| Total | 936,533 | 937,123 | 590 | |||||||||
| Music - | ||||||||||||
| Customers | 458,952 | 557,866 | 98,914 | |||||||||
| Intersegment | 6,389 | 4,153 | (2,236 | ) | ||||||||
| Total | 465,341 | 562,019 | 96,678 | |||||||||
| Pictures - | ||||||||||||
| Customers | 326,206 | 312,208 | (13,998 | ) | ||||||||
| Intersegment | 898 | 2,855 | 1,957 | |||||||||
| Total | 327,104 | 315,063 | (12,041 | ) | ||||||||
| Entertainment, Technology & Services - | ||||||||||||
| Customers | 518,677 | 534,421 | 15,744 | |||||||||
| Intersegment | 15,581 | 9,429 | (6,152 | ) | ||||||||
| Total | 534,258 | 543,850 | 9,592 | |||||||||
| Imaging & Sensing Solutions - | ||||||||||||
| Customers | 385,464 | 492,845 | 107,381 | |||||||||
| Intersegment | 22,726 | 19,893 | (2,833 | ) | ||||||||
| Total | 408,190 | 512,738 | 104,548 | |||||||||
| All Other - | ||||||||||||
| Customers | 16,239 | 19,878 | 3,639 | |||||||||
| Intersegment | 3,091 | 2,234 | (857 | ) | ||||||||
| Total | 19,330 | 22,112 | 2,782 | |||||||||
| Corporate and elimination | (69,141 | ) | (55,134 | ) | 14,007 | |||||||
| Consolidated total | 2,621,615 | 2,837,771 | 216,156 | |||||||||
Note:
Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with the Entertainment, Technology & Services (“ET&S”) segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the ET&S segment. Corporate and elimination includes certain brand and patent royalty income.
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Segment profit (loss)
| Yen in millions | ||||||||||||
| Three months ended June 30 | ||||||||||||
| 2025 | 2026 | Change | ||||||||||
| Operating income (loss): | ||||||||||||
| Game & Network Services | 147,957 | 202,014 | 54,057 | |||||||||
| Music | 92,807 | 105,882 | 13,075 | |||||||||
| Pictures | 18,665 | 24,809 | 6,144 | |||||||||
| Entertainment, Technology & Services | 43,143 | 42,601 | (542 | ) | ||||||||
| Imaging & Sensing Solutions | 54,251 | 122,203 | 67,952 | |||||||||
| All Other | (4,968 | ) | (13,261 | ) | (8,293 | ) | ||||||
| Total | 351,855 | 484,248 | 132,393 | |||||||||
| Corporate and elimination | (11,900 | ) | (7,749 | ) | 4,151 | |||||||
| Consolidated operating income | 339,955 | 476,499 | 136,544 | |||||||||
Operating income (loss) is sales less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.
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(Sales to Customers by Product Category)
The following table is a breakdown of sales to external customers by product category for each segment. Sony management views each segment as a single operating segment.
| Yen in millions | ||||||||||||
| Three months ended June 30 | ||||||||||||
| Sales: | 2025 | 2026 | Change | |||||||||
| Game & Network Services | ||||||||||||
| Digital Software and Add-on Content | 492,147 | 485,218 | (6,929 | ) | ||||||||
| Network Services | 172,648 | 208,623 | 35,975 | |||||||||
| Hardware and Others | 248,015 | 222,005 | (26,010 | ) | ||||||||
| Total | 912,810 | 915,846 | 3,036 | |||||||||
| Music | ||||||||||||
| Recorded Music - Streaming | 196,016 | 237,066 | 41,050 | |||||||||
| Recorded Music - Others | 105,473 | 143,885 | 38,412 | |||||||||
| Music Publishing | 98,685 | 116,002 | 17,317 | |||||||||
| Visual Media and Platform | 58,778 | 60,913 | 2,135 | |||||||||
| Total | 458,952 | 557,866 | 98,914 | |||||||||
| Pictures | ||||||||||||
| Motion Pictures | 107,133 | 102,718 | (4,415 | ) | ||||||||
| Television Productions | 121,627 | 90,916 | (30,711 | ) | ||||||||
| Media Networks | 97,446 | 118,574 | 21,128 | |||||||||
| Total | 326,206 | 312,208 | (13,998 | ) | ||||||||
| Entertainment, Technology & Services | ||||||||||||
| Imaging | 187,299 | 199,652 | 12,353 | |||||||||
| Sound | 65,871 | 65,206 | (665 | ) | ||||||||
| Network Services | 45,597 | 48,054 | 2,457 | |||||||||
| Displays | 101,263 | 99,262 | (2,001 | ) | ||||||||
| Other | 118,647 | 122,247 | 3,600 | |||||||||
| Total | 518,677 | 534,421 | 15,744 | |||||||||
| Imaging & Sensing Solutions | 385,464 | 492,845 | 107,381 | |||||||||
| All Other | 16,239 | 19,878 | 3,639 | |||||||||
| Corporate | 3,267 | 4,707 | 1,440 | |||||||||
| Consolidated total | 2,621,615 | 2,837,771 | 216,156 | |||||||||
In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms. In the Music segment, Recorded Music - Streaming includes the distribution of digital recorded music by streaming; Recorded Music - Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances and merchandising; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles and game applications, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television networks and direct-to-consumer streaming services worldwide. In the ET&S segment, Imaging includes image and video content creation products and solutions including interchangeable lens cameras and interchangeable lenses; Sound includes headphones and wireless speakers; Network Services includes internet-related services; Displays includes display products such as LCD and OLED televisions as well as projectors; Other includes smartphones, home audio products and medical equipment, as well as sports officiating support and content production support services.
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Not Applicable
Accounting Policy and Other Information
(Changes in accounting policies)
Sony newly adopted the following accounting standards from the fiscal year ending March 31, 2027:
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures”
In May 2024, the International Accounting Standards Board (IASB) issued “Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and 7).” These amendments relate to clarifications on the classification of financial assets and the derecognition of financial liabilities, as well as disclosures for equity instruments designated at fair value through other comprehensive income, among other matters. Sony has applied these amended standards since April 1, 2026. The application of these standards does not have a material impact on Sony’s results of operations and financial position.
(Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)
| Yen in millions | ||||||||
| Three months ended June 30 | ||||||||
| 2025 | 2026 | |||||||
| Net income (loss) attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation | 236,909 | 342,161 | ||||||
| Continuing operations | 259,027 | 342,161 | ||||||
| Discontinued operations | (22,118 | ) | - | |||||
| Thousands of shares | ||||||||
| Three months ended June 30 | ||||||||
| 2025 | 2026 | |||||||
| Weighted-average shares outstanding for basic EPS computation | 6,013,191 | 5,891,838 | ||||||
| Effect of dilutive securities: | ||||||||
| Stock options | 24,729 | 16,153 | ||||||
| Restricted stock units | 8,990 | 9,351 | ||||||
| Weighted-average shares for diluted EPS computation | 6,046,910 | 5,917,342 | ||||||
(Segmentation)
The G&NS segment includes the production and sales of digital software and add-on content, the network services businesses and the manufacture and sales of home gaming products. The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses. The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses. The ET&S segment includes the Imaging business, the Sound business, the Network Services business and the Displays business. The I&SS segment includes the image sensors business. All Other consists of various operating activities, including the disc manufacturing and recording media businesses. Sony’s products and services are generally unique to a single operating segment.
(Significant changes in the scope of consolidation and the scope of equity method application during the period)
Upon the conclusion of the General Meeting of Shareholders of Sony Financial Group Inc. (“SFGI”) held on June 25, 2026, after considering factors including the composition of the board of directors of SFGI, Sony Group Corporation concluded that it no longer had significant influence over SFGI. Accordingly, during the first quarter of the fiscal year ending March 31, 2027, SFGI was excluded from the scope of equity method application, and the common stock of SFGI (“SFGI share(s)”) was reclassified from an investment in an associate to an equity instrument measured at fair value through other comprehensive income. The gain or loss resulting from the exclusion of SFGI from the scope of equity method application is not material.
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(Discontinued operations)
At a meeting of Sony Group Corporation’s Board of Directors held on May 14, 2025, Sony Group Corporation resolved the plan regarding the execution of a partial spin-off (the “Spin-off”) of SFGI. Consequently, Sony Group Corporation determined that the distribution of SFGI shares was highly probable and the Financial Services business was classified as a discontinued operation, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” during the first quarter of the fiscal year ended March 31, 2026. As a result, from the first quarter of the fiscal year ended March 31, 2026, in the condensed quarterly consolidated statements of income, condensed quarterly consolidated statements of comprehensive income, and condensed quarterly consolidated statements of cash flows; revenue, expenses, other comprehensive income and cash flows of the Financial Services business, among other items, are separated from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, and presented as net income or loss from discontinued operations, other comprehensive income from discontinued operations, and net cash from discontinued operations, respectively.
Subsequently, Sony Group Corporation executed the Spin-off effective October 1, 2025.
Results of discontinued operations
| Yen in millions | ||||||||
| Three months ended June 30 | ||||||||
| 2025 | 2026 | |||||||
| Financial services revenue | 208,256 | - | ||||||
| Financial services expenses | 239,933 | - | ||||||
| Other income (expenses), net | (122 | ) | - | |||||
| Income (loss) before income taxes from discontinued operations | (31,799 | ) | - | |||||
| Income taxes | (9,681 | ) | - | |||||
| Net income (loss) from discontinued operations | (22,118 | ) | - | |||||
| Other comprehensive income, net of tax, from discontinued operations | 53,286 | - | ||||||
| Items that will not be reclassified to profit or loss | ||||||||
| Changes in equity instruments measured at fair value through other comprehensive income | 35 | - | ||||||
| Remeasurement of defined benefit pension plans | (51 | ) | - | |||||
| Items that may be reclassified subsequently to profit or loss | ||||||||
| Changes in debt instruments measured at fair value through other comprehensive income | (132,899 | ) | - | |||||
| Insurance finance income (expenses) | 186,291 | - | ||||||
| Others | (90 | ) | - | |||||
| Comprehensive income from discontinued operations | 31,168 | - | ||||||
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(Acquisition of a group of assets that does not constitute a business)
On July 15, 2026, a consolidated subsidiary of Sony in the Music Segment completed the acquisition of 100% of the equity interests in a company that owns certain music assets and other assets. Sony consolidated the company and the acquisition was accounted for as an acquisition of a group of assets that does not constitute a business. The total cash consideration was approximately 260 billion yen (approximately 1.6 billion U.S. dollars), subject to customary working capital and other adjustments. As a result of the transaction, Sony recognized approximately 550 billion yen (approximately 3.4 billion U.S. dollars) of content assets (music catalogs) and approximately 310 billion yen (approximately 1.9 billion U.S. dollars) of long-term debt by consolidating the company. In addition, as part of the transaction, Sony received a cash contribution from a third-party, and recognized approximately 65 billion yen (approximately 0.4 billion U.S. dollars) of noncontrolling interests.
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For the overview of operating results for the three months ended June 30, 2026, including the forecast for the fiscal year ending March 31, 2027, please refer to “Q1 FY2026 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the Timely Disclosure Network (TDnet) of the TSE, the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system of the U.S. Securities and Exchange Commission and the website of Sony Group Corporation.
Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:
| (i) | Sony’s ability to maintain product quality and customer satisfaction with its products and services; |
| (ii) | Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences; |
| (iii) | Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms; |
| (iv) | the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives; |
| (v) | changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility; |
| (vi) | Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity; |
| (vii) | Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations; |
| (viii) | the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending; |
| (ix) | Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade; |
| (x) | Sony’s ability to forecast demands, manage timely procurement and control inventories; |
| (xi) | foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated; |
| (xii) | Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel; |
| (xiii) | Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others; |
| (xiv) | risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events; |
| (xv) | the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and |
| (xvi) | the outcome of pending and/or future legal and/or regulatory proceedings. |
Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in Ukraine and Russia and in the Middle East, as well as the series of changes in U.S. tariff policy, could heighten many of the risks and uncertainties noted above. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.
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