SONY · Sony Group Corporation

Sony Group Corporation's FY2026 results reflect continuing operations post the partial spin-off of Sony Financial Group Inc. (SFGI), executed effective October 1, 2025, after board approval on May 14, 2025. This led to reclassification of Financial Services as discontinued, with a significant ¥1,377,795 million loss from reclassifying accumulated other comprehensive income, though it does not impact total equity, cash flows, or continuing operations profit. Sales from continuing operations rose 3.7% YoY to ¥12,479,620 million, driven by core businesses excluding Financial Services, with operating income up 13.4% to ¥1,447,507 million and margin expanding to 5.6% from 3.9%, signaling improved profitability. However, net income attributable to stockholders declined 3.4% to ¥1,030,893 million. Including discontinued operations, consolidated net loss was ¥302,492 million. Balance sheet strengthened notably, with total assets down to ¥15,683,490 million from ¥35,293,173 million due to deconsolidation, but equity ratio surged to 51.8% from 23.2%, and equity per share at ¥1,374.32. Operating cash flow was ¥1,945,617 million, supporting liquidity with ¥2,208,879 million in cash equivalents. Dividends increased to ¥25.00 per share (¥12.50 interim + ¥12.50 year-end), payout 14.5%, excluding in-kind SFGI shares distributed September 30, 2025. FY2027 guidance projects sales slightly down 1.4% to ¥12,300,000 million but net income up 12.5% to ¥1,160,000 million, assuming no discontinued operations impact. Scope of consolidation shrank with 68 entities excluded, including SFGI. Supplementary materials and briefing held for investors/analysts.