Sony Group Corporation (SONY) Declined Due to a One-Time, Non-Cash Charge

1 hour ago 1

Soumya Eswaran

Wed, February 4, 2026 astatine 7:01 AM CST 3 min read

Aristotle Capital Management, LLC, an concern absorption company, released its “Value Equity Strategy” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. equity markets deed caller all-time highs successful Q4 2025, with the S&P 500 Index up 2.66% and the Bloomberg U.S. Aggregate Bond Index rising 1.10%. Value stocks outperformed maturation stocks, and the U.S. system showed resilience. Artificial quality was a large theme, with implicit 300 S&P 500 companies mentioning "AI" successful net calls, boosting mega-cap tech stocks. However, concerns arose astir AI gross circularity, superior spending, and semipermanent concern returns. Against this backdrop, the Composite returned 1.45% axenic gross of fees (0.95% nett of fees), lagging the Russell 1000 Value Index’s 3.8% summation and the S&P 500 Index’s 2.66% gain. Please reappraisal the Strategy’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Aristotle Capital Value Equity Strategy highlighted Sony Group Corporation (NYSE:SONY). Sony Group Corporation (NYSE:SONY) is simply a Japanese-based exertion institution and a important detractor from the Strategy's show successful the quarter. On February 3, 2026, Sony Group Corporation (NYSE:SONY) banal closed astatine $21.93 per share. Sony Group Corporation (NYSE:SONY) delivered a -12.70% instrumentality successful the past month, and its shares are down 1.69% implicit the past 12 months. Sony Group Corporation (NYSE:SONY) has a marketplace capitalization of $131.739 billion.

Aristotle Capital Value Equity Strategy stated the pursuing regarding Sony Group Corporation (NYSE:SONY) successful its 4th fourth 2025 capitalist letter:

"Sony Group Corporation (NYSE:SONY), the planetary person successful video games, representation sensors, euphony and movies, was a superior detractor for the period. Shares declined pursuing the designation of a one-time, non-cash complaint of astir ¥50 cardinal successful the Game & Network Services conception related to an impairment and accounting correction of antecedently capitalized improvement costs. Importantly, this complaint was not recurring and did not bespeak a deterioration successful underlying operating performance. Excluding this item, operating income would person accrued astir 23% year-over-year, supported by steadfast gaming engagement, continued maturation successful web services and bundle sales, and beardown results successful the Music conception driven by streaming maturation and caller theatrical releases. The company’s representation sensor concern besides benefited from a favorable merchandise premix and dependable extremity marketplace demand. Looking ahead, we proceed to spot accidental for Sony to capitalize connected its unsocial presumption arsenic some a contented creator and level owner. The company’s quality to integrate gaming, music, anime and film—and to leverage IP crossed its ecosystem—supports sustained engagement and recurring revenue. In addition, the caller spinoff of Sony’s Financial Services conception further sharpens management’s absorption connected its halfway content, exertion and amusement operations. We judge Sony’s manufacture enactment and continued absorption connected operational execution presumption the institution good for semipermanent worth creation."