How did SONY's Q3 2025 earnings surprise investors?

Sony Group's Q3 2025 earnings report exceeded investor expectations in several key areas, reflecting robust performance in select segments despite challenges: 1. **Earnings Per Share (EPS) and Revenue**: Sony reported an EPS of $0.39, which included an EPS surprise of $0.12. This indicates that the actual EPS was higher than what investors were expecting. Quarterly revenue increased by 18% year-over-year to ¥4,409.6 billion ($29 billion), surpassing the analyst consensus estimate of $23.78 billion. 2. **Segmental Performance**: - The Game & Network Services (G&NS) segment saw a 16% year-over-year increase in sales, reaching ¥1,682.3 billion. Operating income in this segment rose by 37% to ¥118.1 billion, setting a new record for the third quarter. - Music sales improved by 14% year-over-year to ¥481.7 billion, with operating income increasing by 28% to ¥97.4 billion. - Pictures revenue rose by 9% year-over-year to ¥398.2 billion, driven by higher revenues from theatrical releases and the acquisition of Alamo Drafthouse Cinema. 3. **Challenges and Strategic Focus**: Despite the strong performance, challenges were highlighted in the Pictures and Entertainment, Technology & Services (ET&S) segments, and a dip in operating income was noted in Financial Services. These areas require intensified strategic efforts, as indicated in the earnings call. 4. **Market Position and Outlook**: Sony's strong performance in G&NS and Music segments, along with the positive impact of foreign exchange rates, contributed to the overall revenue surge. The company's outlook for the fiscal year ending March 31, 2025, reflects growing momentum in the Financial Services and G&NS business sales. In conclusion, Sony's Q3 2025 earnings exceeded investor expectations, primarily due to strong performances in the G&NS and Music segments, coupled with positive forex impacts. Although challenges exist in certain areas, the company's strategic focus and robust financial health underscore its potential for continued growth.