Sony Group Corporation (SONY) recently partnered with Smart Eye AB, a global pioneer in Interior Sensing AI and Driver Monitoring Systems, to integrate Smart Eye’s advanced sensing and biometric authentication software with Sony’s newly launched IMX775 RGB-IR image sensor. The initiative aims to address key global automotive safety regulations while enabling a new level of secure, personalized in-vehicle experiences.
Synergy stemming from Sony’s advanced hardware with Smart Eye’s AI-driven software delivers comprehensive, real-time insights into driver and passenger behavior. This integration empowers automakers to not only comply with evolving global safety standards but also unlock new personalization and authentication capabilities that transform the in-cabin experience.
The state-of-the-art IMX775 sensor features a 5-megapixel resolution, 2.1 μm pixel size, and the ability to simultaneously capture RGB and infrared (IR) data on a single chip. With a broad 110 dB dynamic range for RGB imaging and exceptional sensitivity at 940 nm near-infrared wavelengths, the IMX775 ensures clear imaging under any lighting scenario. When combined with Smart Eye's sophisticated algorithms, these features improve essential driver monitoring functions, including detecting distraction and drowsiness, as well as tracking occupant posture, seatbelt usage, and body positioning, aligning with evolving regulations, such as the EU’s General Safety Regulation and Euro NCAP’s 2026 standards.
Moreover, Sony’s IMX775 sensor introduces integrated cybersecurity functions that support hardware-level authentication, creating a trusted foundation for secure data exchange. Combined with Smart Eye’s iris and facial recognition software, the result is a chain of trust that extends from the image sensor all the way through the infotainment system. By fusing Sony’s precision-engineered RGB-IR sensing technology with Smart Eye’s intelligent interior monitoring and authentication software, the alliance aims to foster safety, comfort, and digital trust in next-generation vehicles.
Accretive Collaborations Aid SONY Amid Forex Hurdles
Sony has been expanding its business through key acquisitions and partnerships. It allied with Bandai Namco (July 2025) to grow global anime and manga fan communities, and became the largest shareholder in KADOKAWA (December 2024) to boost IP value, co-produce content, and expand media collaborations.
Sony also acquired KinaTrax (October 2024) to enhance sports performance analytics, and Alamo Drafthouse (June 2024) to leverage its cinema chain for content synergies across movies, games, music, and anime. Its 2021 Crunchyroll acquisition strengthened its anime library, now surpassing 17 million paid subscribers, with the market and streaming business expected to grow steadily through 2030.
However, owing to a vast international presence, the company is susceptible to fluctuations in foreign exchange rates, particularly those of yen, the U.S. dollar and euro. As many segments of the company have concentrated operations in specific regions, the currency impact differs from segment to segment. This is expected to hurt its consolidated results. Businesses with significant U.S. dollar- and euro-denominated expenses, such as Game & Network Services and Electronics, are more exposed to forex swings.
In addition, management expects the tariff burden to be felt more strongly in the remainder of the fiscal year, prompting a more conservative outlook. A major North American customer is exploring alternative suppliers (including Korean chipmakers), which could adversely impact Sony’s market position if tariffs alter procurement patterns. While Sony is shifting hardware production for U.S. sales outside China, relocation and supply chain changes may affect costs and require flexible pricing strategies. Considering the potential impact of the tariffs, it projects an operating income of ¥1,330 billion compared with ¥1,400 billion without the tariff impact.
SONY’s Zacks Rank
SONY currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 58.2% in the past year compared with the sub-industry's growth of 54.1%.
Image Source: Zacks Investment ResearchStocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are TaskUs, Inc. (TASK), Cadence Design Systems, Inc. (CDNS) and Genpact Limited (G). TASK sports a Zacks Rank #1 (Strong Buy), while CDNS and G carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TaskUs’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 13.01%. In the last reported quarter, TASK delivered an earnings surprise of 26.47%. Its shares have soared 42.8% in the past year.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.92%. In the last reported quarter, CDNS delivered an earnings surprise of 5.10%. Its shares have surged 30.8% in the past year.
Genpact’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 5.15%. In the last reported quarter, G delivered an earnings surprise of 3.53%. Its shares have inched up 5.6% in the past year.
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Genpact Limited (G): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis Report TaskUs, Inc. (TASK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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