Sony shares soared thanks to share buybacks and an upgraded outlook

Sony shares jumped as much as 12% on Wednesday morning after the Japanese conglomerate announced strong earnings, a stock split and a 250 billion yen ($1.6 billion) share buyback.

Sony also upgraded its outlook, saying its operating profit will rise 5% by March 2025, driven by demand for image sensors.

Analysts and investors were excited by the updated guidance, strong performance of the new PlayStation Tile Helldivers 2 game, and a 5-for-1 stock split plan that should attract more retail investors.

During Tuesday’s earnings call, Hiroki Totoki, the company’s chief financial officer, declined to comment on Sony and private equity group Apollo’s interest in acquiring entertainment company Paramount Global. .