Sony Group Corp. shares climbed over 3.5% in volatile trading Wednesday after the Japanese conglomerate announced a ¥250 billion ($1.7 billion) share buyback and reported stronger-than-expected operating income for the final quarter of its financial year.

For the three months ending March 31, Sony posted an operating income of ¥203.6 billion, surpassing the average analyst estimate of ¥192.2 billion compiled by LSEG, though down 11% year-over-year.

The electronics, entertainment, and finance giant also unveiled plans for a partial spinoff of its financial unit, with over 80% of the unit’s shares to be distributed to Sony shareholders as dividends.

The financial operation, set to be listed later this year, will be classified as a discontinued operation in Sony’s accounting starting this quarter.

However, Sony’s outlook for the fiscal year ending March 2026 tempered investor enthusiasm.

The company projected a modest 0.3% increase in operating profit to ¥1.28 trillion, falling short of the ¥1.5 trillion average analyst forecast.

Sony cited a ¥100 billion hit from U.S. President Donald Trump’s ongoing trade policies as a key factor, though it noted that a recent U.S.-China trade deal—reducing U.S. tariffs on China to 30% from 145% and China’s tariffs on U.S. goods to 10% from 125%—was not factored into the estimate.

The actual tariff impact, Sony cautioned, could vary significantly.

Known for iconic products like the Walkman in the 1980s, Sony has since diversified into movies, music, and gaming, with its PlayStation consoles remaining a cornerstone of its brand.