Corrected: Sonos Q3 profit jumps 52% on IEEPA tariff refunds

Sonos

29/07/2026 21:11

Corrects Q3 free cash flow figure to $40.3 mln from $30 mln in table

Overview
Audio equipment maker's fiscal Q3 revenue rose 9% yr/yr to $375 mln
Adjusted EPS for fiscal Q3 rose 52% yr/yr to $0.27
Company repurchased $30 mln of shares in the quarter

Outlook
Company will provide guidance on its Q3 fiscal 2026 earnings call

Result Drivers
LEANER OPERATIONS - Co said results benefited from a leaner, more focused business and disciplined execution over the past 18 months, per CEO Tom Conrad
COST CONTROL - Co cited disciplined execution and structurally improving the business as supporting margin and profit growth, per CFO Saori Casey
NON-RECURRING TARIFF REFUNDS - Co's GAAP gross profit and net income included a non-recurring benefit from IEEPA tariff refunds

Company press release: ID:nBwbw4w4ba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$375.26 mln
$365.66 mln (2 Analysts)
Q3 Adjusted EPS
Beat
$0.27
$0.005 (2 Analysts)
Q3 Adjusted Net Income
Beat
$33 mln
-$3.55 mln (1 Analyst)
Q3 Net Income
 
$29.85 mln
 
Q3 Adjusted EBITDA
Beat
$44 mln
$34.90 mln (2 Analysts)
Q3 Free Cash Flow
 
$40.2 mln
 
Q3 Operating Income
 
$31.53 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household electronics peer group is "hold."
Wall Street's median 12-month price target for Sonos Inc is $19.50, about 16.1% above its July 28 closing price of $16.80
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads
July 28 - Skyworks beats Q3 revenue, adjusted EPS estimates; sets $2 bln buyback
July 27 - Netherlands' Philips lifts annual profit, cash flow outlook after US tariff refund
July 29 - Electronic gear maker Amphenol forecasts upbeat quarterly revenue on data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)