Sony offered an underwhelming forecast for the year ahead, with the burden of U.S. tariffs wiping out expectations for an increase in operating profit.

The entertainment-focused group said on Wednesday that it sees a ¥100 billion ($700 million) impact from U.S. levies in the year to March and expects an operating profit of ¥1.28 trillion. Even without the tariffs, Sony’s projection falls shy of the average analyst estimate of ¥1.5 trillion and is essentially flat compared to the year concluded in March 2025.

The new outlook came alongside the announcement of a ¥250 billion share buyback and the timeline for a partial spinoff of Sony’s financial unit. Sony said it plans to list the financial operation on Sept. 29 and will start to treat it as a discontinued business in its accounting from the current quarter.