Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. demonstrated robust growth in the fourth quarter, with revenue rising 12.7% year-over-year to reach $1.44 billion, despite an overall annual decline of 4.9%. The company has effectively increased the average number of products owned per household to 3.13, up from 3.08 last year, which indicates enhanced customer engagement and product loyalty within its ecosystem. Improvements in EBITDA margins, rising to 8.7% from 7.1% the previous year, coupled with strategic cost reductions and leadership changes, position Sonos favorably for continued success heading into FY26 and beyond.

Sonos Inc. experienced a notable year-over-year revenue decline of 13%, highlighting the challenging comparison due to the previous year's successful product launches. The company anticipates a further revenue decline of 8% on a reported basis for the upcoming quarter, compounded by a lack of specific guidance from management and tough historical comparables. Additionally, the current macroeconomic environment, coupled with the absence of significant catalysts for product replacement, has led to modest growth expectations, with future performance heavily reliant on the outcome of the holiday season.