Japanese entertainment giant Sony has significantly upgraded its financial projections for the 2025-26 fiscal year, citing the massive success of its Demon Slayer anime franchise and stronger-than-expected performance from its PlayStation gaming division.
Financial Forecasts Exceed Expectations
The company announced an 8% increase in its net profit forecast, now projecting 1.05 trillion yen ($6.8 billion) for the full year. This marks the second upward revision this year and keeps Sony on track to match last year's record-breaking performance.
In addition to net profit, Sony raised its operating profit projection by 8% and sales forecast by 3%. The company's shares responded positively to the news, jumping 5.7% in afternoon trading following the announcement.
The improved outlook comes as Sony reported strong first-half results, with net profit climbing 13.7% year-on-year to 570 billion yen.
Demon Slayer Drives Box Office Success
The latest installment in the Demon Slayer franchise, Demon Slayer: Kimetsu No Yaiba -- Infinity Castle: Part 1, has proven to be a monumental success both domestically and internationally.
The film has become the second-highest grossing film of all time in Japan, trailing only the previous Demon Slayer movie that dominated during the COVID-19 pandemic. The dark fantasy about sword-wielding hero Tanjiro Kamado's final demon-slaying mission also topped the box office in the United States and Canada when it premiered in September.
This represents the first title in a new trilogy based on the popular manga series, indicating continued revenue potential for Sony in the coming years.
PlayStation and Tariff Impacts
Beyond the anime success, Sony credited higher expected sales of its PlayStation 5 console and reduced impact from US tariffs for the improved financial outlook.
The company revised its tariff impact forecast downward to approximately 50 billion yen, a reduction of 20 billion yen from August estimates. This adjustment follows a July trade agreement that saw the United States lower tariffs on Japanese goods to 15% instead of the threatened 25%.
However, analysts note challenges ahead for the gaming division. The PlayStation 5, launched in 2020, is entering the downcycle of its lifespan, according to David Cole of DFC Intelligence. The recent $50 price increase for the console in the United States reflects what Sony describes as a challenging economic environment.
The delayed release of Grand Theft Auto VI until November 2026 also presents concerns, as Cole noted the highly anticipated game is expected to be a major driver for PlayStation sales. Despite this, he emphasized that Sony's business model isn't dependent on one or two major releases.
Sony joins other Japanese corporations like Toyota in revising profit forecasts upward, signaling broader strength in the Japanese export economy despite global economic uncertainties.
