Sony predicts $700 million in losses due to US tariffs

Sony said that US tariffs will have a significant impact on its financial results until March 2026. Analysts expect losses of about ¥100 billion (about $700 million). Despite market expectations, operating profit will remain almost at last year's level — ¥1.28 trillion (about $8.2 billion) — and will be lower than analysts' forecasts. Bloomberg writes.

In addition to the forecast, Sony announced a share buyback of up to ¥250 billion ( about $1.6 billion) and plans to partially separate the financial division, its IPO scheduled for September 29, 2025. After that, the financial business will be considered a non-core asset.

Despite weak forecasts, the company's shares rose by 4.5% - investors are attracted by share buybacks, which are becoming a common practice among Japanese corporations.

Sony reported operating profit of ¥203.7 billion (about $1.31 billion) in the first quarter of 2025 , and sold 18.5 million PS5 consoles for the full year (up from 20.8 million a year earlier). New CEO Hiroki Totoki will have to deal with issues related to customs policy in the United States, the main market for the PlayStation, which is mostly manufactured in China.

The company already raised PS5 prices in Europe, Australia, and New Zealand last month, and if the US tariffs remain in place, that could lead to a price hike in America as well.