Sony (NYSE:SONY) reported a surge in third-quarter operating profit that outpaced market expectations, driven by a resilient gaming software lineup and soaring demand for its high-end smartphone image sensors.
The Tokyo-based entertainment and technology giant posted a statutory net loss of $6.55 billion, or $1.09 per share, for the three months ended Dec. 31, 2025.
However, this headline loss was primarily driven by a massive non-cash accounting charge related to the partial spinoff and reclassification of its Financial Services unit as a discontinued operation.
When adjusted for these one-time items, earnings from continuing operations rose 11% to 377.3 billion yen (approximately $2.41 billion), or 41 cents per share, surpassing analyst estimates.
Revenue for the period reached $24.11 billion.
The company’s Imaging & Sensing Solutions division was a standout performer, benefiting from a recovery in the global smartphone market and the rollout of Apple’s iPhone 17 line.
Meanwhile, the Game & Network Services segment saw operating income climb 19% despite a 16% slide in PlayStation 5 hardware sales.
The decline in console volume was more than offset by high-margin software sales and growth in PlayStation Plus subscriptions.