Sony Group Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a good week for Sony Group Corporation (TSE:6758) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.4% to JP¥3,705. It looks like a credible result overall - although revenues of JP¥3.7t were what the analysts expected, Sony Group surprised by delivering a (statutory) profit of JP¥62.07 per share, an impressive 30% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sony Group

Following the recent earnings report, the consensus from 25 analysts covering Sony Group is for revenues of JP¥13t in 2026. This implies a small 4.2% decline in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥190, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥13t and earnings per share (EPS) of JP¥189 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥3,912, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Sony Group at JP¥4,630 per share, while the most bearish prices it at JP¥2,800. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2026. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.2% annually for the foreseeable future. It's pretty clear that Sony Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥3,912, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sony Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sony Group going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Sony Group's balance sheet, and whether we think Sony Group is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.