| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 45 | 32.9x | 17.8x | Around median | |
Growth | 56 | 5.6% | 7.1% | Around median | |
Quality | 79 | 11.3% | 4.5% | Top tier | |
Safety | 83 | — | 2.6x | Top tier | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 47 | 12.4% | 2.9% | Around median | |
Sentiment | 62 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sonos develops an interconnected home audio ecosystem that includes speakers, home theater soundbars, multi-zone amplifiers, and portable and personal audio products. Its model is based on selling devices and enabling them to work within a unified system; the installed base includes more than 53 million connected devices across more than 17 million households, allowing the company to increase the value of each household over time by adding new products to the same ecosystem. Sonos also draws on relationships spanning more than two decades with installation professionals, a channel it is targeting with Amp Multi, which is designed for multi-zone residential projects.
In Q3 fiscal 2026, revenue reached $375.3 million, up 9% year over year and near the high end of the guidance range, compared with $281.5 million in Q2 fiscal 2026. GAAP gross profit was approximately $189.3 million, with a 50.4% margin that benefited from a tariff refund; excluding this refund, gross profit would have been $166 million and the margin 44.3%, while the non-GAAP margin was approximately 45.5%. The company reported net income of $29.9 million and earnings per share of $0.25, compared with a net loss of $28.9 million and negative earnings per share of $0.24 in the previous quarter.
Growth came from all regions in Q3 fiscal 2026; APAC revenue rose 27%, EMEA 17%, and the Americas 4%, while total revenue growth in constant currency was 7%. At the product level, this was the first full quarter of availability for Sonos Play and Era 100 SL, and management said both contributed meaningfully to the results. Adjusted earnings before interest, taxes, depreciation, and amortization reached $44 million, with an 11.7% margin, up 24% year over year, while free cash flow reached $40 million.
Automated analysis for informational purposes only — not investment advice.
The analysts' average price target is $19 with a consensus rating of “Buy,” and the target range is between $18 and $21; the average is therefore approximately 4% below the 52-week high of $19.82. The 52-week range extends from $12.44 to $19.82, while the highest analyst target exceeds that high and the lowest target remains below it, reflecting an overall positive view that does not eliminate the risks of the expected margin contraction in fiscal 2027.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Sonos revenue reached approximately $375.3 million in Q3 fiscal 2026, representing year-over-year growth of 9% and coming in near the high end of the company's guidance. The first full quarter of availability for Sonos Play and Era 100 SL contributed meaningfully to the results, while APAC grew 27%, EMEA 17%, and the Americas 4%. Adjusted earnings before interest, taxes, depreciation, and amortization reached $44 million, up 24%, despite a negative impact of $14 million from higher memory costs.
Sonos submitted claims to recover $41 million in prior tariffs and received $24 million in Q3 fiscal 2026. Of that amount, $23 million was recorded in GAAP gross profit and $1 million as interest income, raising the GAAP gross margin to 50.4%. Without the refund, the GAAP gross margin would have been 44.3%, while GAAP earnings per share of $0.25 included a $0.20 benefit from the refunds.
Memory costs reduced adjusted earnings before interest, taxes, depreciation, and amortization by approximately $14 million in Q3 fiscal 2026 and lowered gross margin by approximately 380 basis points. Sonos expects the pressure on gross profit to rise to $35 million and approximately 1,000 basis points in Q4 fiscal 2026, with the full-year impact reaching $58 million. The company is working to secure supply, improve cost terms, reduce memory requirements per device, and assess pricing, but it expects mitigation benefits to emerge gradually during fiscal 2027.
Amp Multi is a multi-zone amplifier designed for installation and integration partners, and the company set August 25, 2026 as its scheduled shipping date. The product is intended to simplify installation, setup, and tuning, and to enable Sonos partners to execute larger residential projects centered on its ecosystem. Management described its margin as excellent, making it a potential contributor to the profit mix at a time when other products face pressure from memory costs.
The company expects revenue of between $325 million and $355 million in Q4 fiscal 2026, representing year-over-year growth of between 13% and 23%. This quarter includes an additional week that adds approximately $24 million and eight points of growth, so the growth range excluding this effect is 4%–15%. Sonos expects fiscal 2026 revenue growth of between 6% and 8% and adjusted earnings before interest, taxes, depreciation, and amortization of $181 million, with an 11.7% margin.
More than 53 million connected Sonos units operate in more than 17 million households, a presence that gives the company operational knowledge of multi-room audio systems. Management believes that the value of home intelligence is not limited to the artificial intelligence model but also includes the devices, connectivity, and services that turn a request into a coordinated action. Sonos linked this vision to its 20 years of experience in sound, form, and system integration, and set early September 2026 to present product work developed during the previous year.
