Sonos (NASDAQ:SONO) Shares Gap Up on Earnings Beat

Shares of Sonos, Inc. (NASDAQ:SONO) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $14.63, but opened at $16.10. Sonos shares last traded at $16.4940, with a volume of 600,729 shares changing hands.

The company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.85 by $0.08. The company had revenue of $545.66 million during the quarter, compared to analysts’ expectations of $536.93 million. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.85%. The business’s revenue for the quarter was down .9% on a year-over-year basis. During the same period last year, the company posted $0.64 earnings per share.

Key Stories Impacting Sonos

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 results and margin/cash-flow beat drove the initial move — Sonos reported $0.93 EPS (above estimates) and revenue of ~$546M, with commentary about expanding margins and stronger cash flow that signal operational progress. Sonos Q1 Earnings and Revenues Surpass Estimates, Stock Rises
• Positive Sentiment: Management reiterated a return-to-growth narrative and highlighted product cadence (Amp Multi launch called out on the earnings call), giving investors confidence in execution and the multi-year roadmap. Sonos Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: Analyst and press takes frame the new hardware lineup as a potential catalyst for renewed growth — coverage suggests the product mix is aimed at higher-end, multi-room/home-theater setups that can lift ASPs and ecosystem spend. Sonos: New Products Chart A New Growth Trajectory
• Neutral Sentiment: Retail promotions and flash sales (soundbars, speakers, headphones) are widespread — these can boost near-term revenue and attract new users but may pressure gross margin if heavy discounting persists. Sonos is blowing out its most popular soundbars, speakers, and headphones during this flash sale
• Negative Sentiment: Q2 revenue guidance ($250M–$280M) sits slightly below consensus (~$267.2M midpoint vs consensus), which could limit near-term upside if investors focus on conservative guidance; the company still posted year-over-year revenue contraction (~0.9%) and remains modestly unprofitable on a net basis. View Press Release / Slide Deck

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Wall Street Zen lowered Sonos from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Jefferies Financial Group raised their price objective on Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Morgan Stanley set a $18.00 target price on Sonos in a report on Wednesday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $21.00 price target on shares of Sonos in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $20.00.

Insider Activity

In other news, CEO Thomas Conrad acquired 62,325 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were purchased at an average price of $16.17 per share, for a total transaction of $1,007,795.25. Following the completion of the acquisition, the chief executive officer owned 305,103 shares of the company’s stock, valued at approximately $4,933,515.51. This represents a 25.67% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Edward P. Lazarus sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $19.00, for a total transaction of $228,000.00. Following the transaction, the insider directly owned 423,219 shares in the company, valued at approximately $8,041,161. The trade was a 2.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Nisa Investment Advisors LLC lifted its stake in shares of Sonos by 65.6% in the 2nd quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock valued at $35,000 after purchasing an additional 1,269 shares during the last quarter. Quarry LP raised its holdings in Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after buying an additional 2,696 shares in the last quarter. Centaurus Financial Inc. lifted its position in shares of Sonos by 9.0% in the second quarter. Centaurus Financial Inc. now owns 10,375 shares of the company’s stock worth $112,000 after buying an additional 856 shares during the last quarter. Transcend Capital Advisors LLC bought a new stake in shares of Sonos during the 2nd quarter worth about $119,000. Finally, GAMMA Investing LLC boosted its stake in shares of Sonos by 10.2% during the 4th quarter. GAMMA Investing LLC now owns 6,832 shares of the company’s stock worth $120,000 after acquiring an additional 631 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company’s stock.

Sonos Trading Up 6.4%

The stock has a fifty day moving average price of $17.14 and a 200 day moving average price of $15.70. The firm has a market cap of $1.88 billion, a price-to-earnings ratio of -91.53 and a beta of 2.05.

About Sonos

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company’s core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.