Sony Group shares surged as much as 10.7% on Friday after the Japanese conglomerate raised its revenue and profit forecast for the fiscal year ending March 2024. The company now expects annual operating profit to reach 1.34 trillion yen ($87.6 billion), a 2% increase from the previous year, and full-year sales to hit 13.2 trillion yen, up 4% from its November forecast.

The upward revision was driven by strong performance in Sony’s gaming and music businesses during the third quarter. Operating income for the December quarter rose 1% year-on-year to 469.3 billion yen, with the gaming division seeing a 37% increase in operating profit. This growth was fueled by higher sales of network services, hardware, and third-party software.

Sony sold 9.5 million PlayStation 5 units in the December quarter, up from 8.2 million in the same period last year. Lifetime sales of the PS5 now stand at 74.9 million units. Monthly active users on PlayStation platforms also hit a record 129 million accounts in December, a 5% year-on-year increase.

Analysts remain optimistic about Sony’s future, particularly its gaming division. Damian Thong of Macquarie Capital noted that Sony’s stock has room to grow, citing strong upcoming game releases and cost-cutting measures.