Stock Market Live July 2, 2026: S&P 500 (SPY) Flat with New Jobs Data
Q1 26 EPS
$0.93
BEAT +36.76%
Est. $0.68
Q1 26 Revenue
$545.7M
BEAT +1.63%
Est. $536.9M
vs S&P Since Q1 26
-22.2%
TRAILING MARKET
SONO -14.2% vs S&P +8.1%
Market Reaction
Did SONO Beat Earnings? Q1 2026 Results
Sonos delivered a standout profitability quarter in fiscal Q1 2026, with non-GAAP diluted EPS of $0.93 beating the $0.68 consensus estimate by 36.76%, even as revenue of $545.66 million edged down just 0.9% year-over-year. The real story was margin e… Read more Sonos delivered a standout profitability quarter in fiscal Q1 2026, with non-GAAP diluted EPS of $0.93 beating the $0.68 consensus estimate by 36.76%, even as revenue of $545.66 million edged down just 0.9% year-over-year. The real story was margin expansion and cost discipline: GAAP gross margin widened to 46.5% from 43.8% a year ago, while total operating expenses fell sharply to $153.04 million from $193.31 million, driving GAAP net income to nearly double at $93.80 million. Adjusted EBITDA surged 45% to $132.14 million, a margin of 24.2% versus 16.6% in the prior-year period, a result CFO Saori Casey described as generating more profit in a single quarter than all of fiscal 2025. In a media landscape where cost discipline drives profitability inflection, Sonos fits the pattern. New CEO Tom Conrad signaled a return to growth through product innovation, including the newly announced Amp Multi, and geographic expansion, while maintaining the operational rigor that defined this quarter.
Key Takeaways
- • Revenue above midpoint of guidance range
- • Adjusted EBITDA expanded 45% over the prior year
- • Q1 generated more profit than all of Fiscal 2025
- • GAAP gross margin improved to 46.5% from 43.8% year-over-year
- • Non-GAAP gross margin expanded to 47.5% from 44.7%
- • Significant operating expense reductions across R&D, sales & marketing
- • Stock-based compensation expense reduced to $15.2M from $25.3M year-over-year
- • Sixth consecutive quarter of solid execution
SONO YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SONO Revenue by Segment
With YoY comparisons, source: SEC Filings
SONO Revenue by Geography
With YoY comparisons, source: SEC Filings
“Fiscal 2026 is off to a good start for Sonos as we make progress toward a return to growth. We're focused on coordinated execution across the growth dimensions that matter, from product and software to marketing and global expansion. With the announcement of Amp Multi, and with more planned later this year, we're returning to product innovation that strengthens Sonos as a system, pairing great products with a simpler, more reliable, and more powerful platform designed to create long-term value for our customers, partners, and the business – all while maintaining our commitment to operational discipline.”
— Tom Conrad, Q1 2026 Earnings Press Release
SONO Earnings Trends
SONO vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SONO EPS Trend
Earnings per share: estimate vs actual
SONO Revenue Trend
Quarterly revenue: estimate vs actual
SONO Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.01 | $-0.02 | -300.00% | $281.5M | +5.16% |
| Q1 26 BEAT | $0.68 | $0.93 | +36.76% | $545.7M | +1.63% |
| Q4 25 MISS FY | $0.05 | $-0.06 | -220.00% | $287.9M | +4.38% |
| FY Full Year | — | $0.64 | — | $1.44B | — |
| Q3 25 BEAT | $0.15 | $0.19 | +26.67% | $344.8M | +6.13% |
| Q2 25 MISS | $-0.16 | $-0.18 | -12.50% | $259.8M | +2.23% |