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6-K 1 tm2621477d1_6k.htm FORM 6-K

 

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

 

Condensed Quarterly Consolidated Financial Statements (Unaudited) 2
   
Condensed Quarterly Consolidated Statements of Financial Position 2
Condensed Quarterly Consolidated Statements of Income (Three months ended June 30) 4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended June 30) 5
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Three months ended June 30) 6
Condensed Quarterly Consolidated Statements of Cash Flows (Three months ended June 30) 7
Notes to Condensed Quarterly Consolidated Financial Statements 9
  - Business Segment Information 9
  - Going Concern Assumption 12
  - Accounting Policy and Other Information 12
  - Subsequent Event 14
   
Overview of Operating Results 15
   
Cautionary Statement 15

 

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 Segment Information

(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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Going Concern Assumption

 

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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Subsequent Event

 

(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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Overview of Operating Results

 

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.

 

Cautionary Statement

 

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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