Sony Group Corporation (SONY) AI Stock Analysis

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets globally. Headquartered in Tokyo, Japan, it operates across gaming, music, pictures, electronics, and semiconductor segments. The company distributes software titles, digital network services, game consoles, packaged software, and peripheral devices. Its entertainment operations include recorded music, music publishing, animation, motion pictures, and television programming. In addition, Sony develops televisions, video and sound products, digital cameras, medical equipment, and semiconductors, including image sensors and charge-coupled devices.

Sony grew revenue at a 5-year CAGR of 6.8% from FY2021 to FY2026. In FY2026, revenue increased 3.7% to $12.48T, while operating margin expanded to 12.4% and gross margin reached 36.9%. However, net income fell to -$326.87B, producing a net margin of -2.6%, down from net income of $1.14T in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 8.2% year-over-year, and quarterly earnings grew 47.6% year-over-year. TTM revenue reached $12.70T with a TTM operating margin of 16.7% and TTM EPS of $1.21.

As of June 30, 2026, Sony held $2.17T in cash and short-term investments against total debt of $1.87T, resulting in net cash of $299.42B. The current ratio stood at 1.25, with a debt-to-equity ratio of 0.22 and shareholders' equity of $8.37T. In FY2026, Sony generated $1.95T in operating cash flow and $1.49T in free cash flow. Capital deployment during FY2026 included $457.68B in capital expenditures, $522.09B in share buybacks, and $135.03B in dividends paid, contributing to a 5-year share count change of -5.4%.

At $24.88 per share, Sony trades at a market capitalization of $145.26B and an enterprise value of $135.20B. Its trailing P/E is 20.6x and forward P/E is 16.0x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. The company's EV/EBITDA is 7.8x compared to the peer median of 16.6x, and its price-to-book ratio is 2.6x. Over the past year, Sony's stock declined 12.1%, trailing the S&P 500 (SPY) return of 16.8%, and over five years returned 18.2% versus 83.0% for SPY.

Sony has paid consecutive dividends for 44 years. The forward annual dividend is $0.16 per share, representing a dividend yield of 0.64% and a payout ratio of 13.3%. Its 5-year annualized dividend growth rate is 10.0%, and its most recent ex-dividend date was September 29, 2026.

Wall Street analysts hold 2 Strong Buy, 1 Buy, and 1 Hold ratings on Sony, with no Sell or Strong Sell recommendations. The mean price target is $29.50, representing an 18.6% upside from the last close of $24.88. For the current fiscal year ending March 31, 2027, consensus estimates project revenue of $12.91T and EPS of $1.42, representing 505.8% EPS growth. Over the last four quarters, Sony beat EPS estimates 2 times. The next earnings date is November 5, 2026.

This page is an AI-written research summary of Sony Group Corporation (SONY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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