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

Sonos, Inc. (NASDAQ:SONO) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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 traded.

The company reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.08. The company had revenue of $545.66 million for the quarter, compared to analysts’ expectations of $536.93 million. Sonos had a positive return on equity of 0.82% and a negative net margin of 1.22%.Sonos’s quarterly revenue was down .9% on a year-over-year basis. During the same period last year, the firm earned $0.64 earnings per share.

Trending Headlines about Sonos

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 earnings and margins surprised to the upside — Sonos reported an earnings beat and margin expansion, driving investor enthusiasm and stronger-than-expected cash flow. Why Sonos (SONO) Is Up 6.8% After Margin-Driven Q1 Earnings Beat And New Amp Multi Launch
• Positive Sentiment: Analysts and press highlighted revenue topping estimates and near-doubling of profit versus consensus, supporting the stock move. Sonos shares jump 5% as Q1 profit nearly double consensus figure, revenue tops estimates
• Positive Sentiment: New product strategy: Sonos rolled out new hardware (including an Amp multi product) that analysts say could reaccelerate growth and improve the company’s long-term trajectory. Sonos: New Products Chart A New Growth Trajectory
• Positive Sentiment: Reliability and customer advocacy messaging: management says platform reliability has been restored and is refocusing on customer advocacy — a key reputational improvement after prior service issues. With reliability restored, Sonos focuses on customer advocacy
• Positive Sentiment: Retail promotions and holiday/game-day sales are active (discounts on Arc Ultra/Sub, Era 100, headphones), which can boost near-term unit sales and clear inventory ahead of new product cycles. Save $550 Off the Sonos Arc Ultra Soundbar and Sub 4 Premium Entertainment Set at Best Buy Save 18% Off the Sonos Era 100 Smart Speaker
• Neutral Sentiment: Investor resources: the company published its Q1 presentation and earnings transcript for deeper read-throughs of margin drivers, product road map and channel strategy — useful for modeling but not market-moving by itself. Sonos, Inc. 2026 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Q2 revenue guidance came as a range ($250M–$280M) that sits around or slightly below Street expectations, which could cap upside until the company demonstrates reaccelerating top-line growth. (Guidance update released by the company.)

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In related news, CEO Thomas Conrad purchased 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 transaction, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at approximately $4,933,515.51. The trade was a 25.67% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Edward P. Lazarus sold 12,000 shares of the company’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 value of $228,000.00. Following the sale, the insider directly owned 423,219 shares of the company’s stock, valued at approximately $8,041,161. This represents a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors LLC lifted its holdings in shares of Sonos by 65.6% during the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock worth $35,000 after purchasing an additional 1,269 shares during the period. Quarry LP raised its position in Sonos by 485.8% during the 3rd quarter. Quarry LP now owns 3,251 shares of the company’s stock worth $51,000 after buying an additional 2,696 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Sonos by 10.2% in 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 during the period. Centaurus Financial Inc. lifted its stake in shares of Sonos by 9.0% in the 2nd quarter. Centaurus Financial Inc. now owns 10,375 shares of the company’s stock worth $112,000 after acquiring an additional 856 shares during the period. Finally, Focus Partners Wealth purchased a new stake in shares of Sonos in the third quarter valued at about $170,000. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Sonos Price Performance

The firm has a market capitalization of $2.00 billion, a price-to-earnings ratio of -97.41 and a beta of 2.05. The business’s 50 day moving average price is $17.10 and its 200-day moving average price is $15.70.

Sonos Company Profile

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.