Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. has demonstrated a positive trajectory in product ownership, with 61% of users now averaging 4.49 products per household, an increase from 4.42 the prior year. The company reported a 12.7% year-over-year revenue growth in the fourth quarter, concluding the fiscal year with $1.44 billion in revenue despite a 4.9% decline overall, bolstered by improved EBITDA margins rising to 8.7% from 7.1% the previous year. Recent management changes, cost reduction strategies, and enhancements in software have positioned Sonos for improved operational performance and financial stability heading into fiscal year 2026 and beyond.

Sonos Inc. reported a significant revenue decline of 13% year-over-year, which is compounded by tough comparisons to the previous year's launches of products like the Ace Headphones, Arc Ultra, and Sub 4. The company's revenue projections indicate an anticipated decline of 8% year-over-year on a reported basis, with limited expectations for substantial growth due to the current macroeconomic environment and lack of catalysts for a major product replacement cycle. Furthermore, the outlook for fiscal Q1 remains uncertain as the company has not provided specific guidance, and overall growth potential for FY26 will largely depend on the performance during the holiday season.