Sonos, Inc. SONO is scheduled to report second-quarter fiscal 2026 results on May 4, after market close.
For the quarter, SONO anticipates revenues between $250 million and $280 million, indicating a year-over-year 4% decline to an 8% increase, with a 2% rise at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $264.9 million, indicating growth of 2% from the year-ago reported number.
The consensus estimate for earnings is pegged at a loss of 4 cents. It had reported a loss of 18 cents in the prior-year quarter.
In the past six months, shares of SONO have plunged 13.7% compared with the Zacks Audio Video Production industry’s decline of 28.1%.
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Factors Shaping SONO’s Q2 Results
Sonos continues to benefit from an innovative product lineup and a streamlined reorganization designed to accelerate development while cutting more than $100 million in annual operating expenses. Its ecosystem-driven strategy encourages customers to expand their audio systems over time, supporting repeat purchases and deeper engagement. New products like Sonos Amp Multi are targeting high-end residential installations, while entry-level offerings such as Era 100 continue to attract new users. With aligned hardware and software roadmaps, the company remains focused on driving innovation, increasing system usage and supporting long-term growth.
The company is expanding its direct-to-consumer channel, partner ecosystem and global footprint to drive growth. It aims to deepen customer relationships and boost repeat purchases through an integrated system, while leveraging installers and integrators for complex, high-end projects.
Sonos is further targeting international expansion across EMEA, APAC and emerging markets beyond its core Americas base, which saw modest 1.3% growth in first-quarter fiscal 2026. Ongoing investments in brand awareness, product expansion and AI-driven software are expected to enhance household penetration and long-term engagement. These are likely to have supported its second-quarter performance.
The Zacks Consensus Estimate for revenues from Sonos speakers, Sonos system products and partner products segments is pegged at $200 million, $51 million and $13.96 million, respectively.
Sonos, Inc. Price and EPS Surprise
Sonos, Inc. price-eps-surprise | Sonos, Inc. Quote
For the second quarter, GAAP gross margin is expected to be between 44% and 46%, with non-GAAP gross margin approximately 220 basis points (bps) higher. At the midpoint, this represents a year-over-year increase of 130 bps on a GAAP basis and 10 bps on a non-GAAP basis. Second-quarter GAAP operating expenses are forecast at $150 million to $160 million, indicating an 11% year-over-year decline at the midpoint as the company laps prior-year workforce reductions and related restructuring charges. Non-GAAP operating expenses are expected to be roughly $16 million lower than GAAP.
The company’s second-quarter adjusted EBITDA is expected to range from a loss of $18 million to a profit of $10 million.
However, Sonos’ fiscal second-quarter performance is likely to have been adversely impacted by multiple headwinds, including limited new product contributions, tariff-related pressures and rising costs. On the lastearnings call tariffs created an approximately 300 bps headwind to gross margins. Sonos continues to navigate these challenges that might hurt its margins and weaken its competitive edge.
Moreover, management, on the lastearnings call highlighted that the second quarter will be a quieter period seasonally and will not include contributions from new products like Amp Multi.
Recent Developments
On March 10, Sonos advanced its integrated home audio strategy with the launch of Sonos Play and Sonos Era 100 SL, designed to expand systems over time without requiring full device replacement.
What Our Model Says About SONO
Our proven model does not predict an earnings beat for SONO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
SONO has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Lumen Technologies, Inc. LUMN currently has an Earnings ESP of +27.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lumen is scheduled to report quarterly earnings on May 5. The Zacks Consensus Estimate for LUMN’s to-be-reported quarter’s earnings and revenues is pegged at a loss of 6 cents per share and $2.84 billion, respectively. Shares of LUMN have skyrocketed 151.1% in the past year.
Onto Innovation Inc. ONTO has an Earnings ESP of +1.63% and a Zacks Rank #1 at present. ONTO is scheduled to report quarterly figures on May 5. The Zacks Consensus Estimate for ONTO’s to-be-reported quarter’s earnings and revenues is pegged at $1.38 per share and $289.1 million, respectively. Shares of ONTO are up 144.4% in the past year.
Advanced Micro Devices, Inc. AMD has an Earnings ESP of +5.02% and a Zacks Rank #2 at present. AMD is scheduled to report quarterly figures on May 5. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $1.30 per share and $9.84 billion, respectively. Shares of AMD are up 266.8% in the past year.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Sonos, Inc. (SONO) : Free Stock Analysis Report
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Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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