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Somnigroup

SGI Q1 2026 Earnings

Reported May 7, 2026 at 6:38 AM ET · SEC Source

Q1 26 EPS

$0.59

BEAT +2.84%

Est. $0.57

Q1 26 Revenue

$1.80B

MISS 1.62%

Est. $1.83B

vs S&P Since Q1 26

-11.3%

TRAILING MARKET

SGI -9.9% vs S&P +1.4%

Market Reaction

Did SGI Beat Earnings? Q1 2026 Results

Somnigroup International posted a mixed but fundamentally solid first quarter for 2026, edging past earnings expectations while falling slightly short on revenue as the Mattress Firm integration reshaped the company's financial profile. Adjusted EPS … Read more Somnigroup International posted a mixed but fundamentally solid first quarter for 2026, edging past earnings expectations while falling slightly short on revenue as the Mattress Firm integration reshaped the company's financial profile. Adjusted EPS of $0.59 beat the $0.57 consensus estimate by 2.84%, reflecting a 20.4% year-over-year improvement on an adjusted basis, while revenue of $1.80 billion trailed the $1.83 billion consensus by 1.62%, though it still rose 12.3% from a year ago. The top-line growth was driven primarily by the first full quarter of Mattress Firm ownership, compared to roughly two months of consolidation in the prior-year period, with the integration also delivering meaningful margin expansion in North America, where adjusted operating margin improved 710 basis points to 24.3%. Analysts had already tempered near-term expectations heading into the print, with consensus EPS revised down roughly 5.5% over the prior 30 days. Looking ahead, management reaffirmed full-year 2026 adjusted EPS guidance of $3.00 to $3.40, representing approximately 19% growth at the midpoint, though cautioned that tariff uncertainty and broader macroeconomic volatility remain key risks to the outlook.

Key Takeaways

  • • Inclusion of Mattress Firm for a full quarter versus approximately two months in Q1 2025
  • • Strong international performance with 15.5% net sales growth (7.2% constant currency)
  • • North America adjusted gross margin expansion of 1,300 basis points from synergies, lower product launch costs, and operational efficiencies
  • • International gross margin improvement from favorable mix and operational efficiencies
  • • Record first quarter cash flows from operations of $246 million
  • • Reduced corporate operating expense from $85.0 million to $42.9 million due to decreased Mattress Firm acquisition costs

SGI Forward Guidance & Outlook

The company reaffirmed full-year 2026 adjusted EPS guidance of $3.00 to $3.40, representing approximately 19% growth from 2025 adjusted EPS at the midpoint. Management noted that expectations are subject to risks including possible imposition of new or retaliatory tariffs, a potential U.S. government shutdown, increases in existing tariffs and other trade policy changes, and resulting macroeconomic uncertainty.

24/7 Wall St

SGI YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

SGI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“While navigating challenging market conditions, we delivered solid financial results this quarter, including a robust 20% increase in adjusted EPS. Our performance in this muted market environment reflects the strength of our business and our continued focus on operational discipline and supporting our customers. Our scale, trusted brands, and omnichannel capabilities provide a solid foundation to succeed and support long‑term value creation.”

— Scott Thompson, Q1 2026 Earnings Press Release

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