Why Sonos (SONO) Stock Is Up Today

What Happened?

Shares of audio technology Sonos company (NASDAQ:SONO) jumped 4.5% in the afternoon session after it reported strong fourth-quarter 2025 earnings that significantly outperformed expectations, particularly on profitability. 

For the quarter, Sonos's revenue was flat year on year at $545.7 million, but this still beat analysts' estimates of $537.5 million. The more significant surprise came from the bottom line, with adjusted earnings per share of $0.93 crushing the consensus estimate of $0.68. Profitability also saw a major improvement as the company's operating margin increased to 18.4%, up from 8.7% in the same quarter of the previous year. This demonstrated greater cost efficiency and resonated positively with investors.

After the initial pop the shares cooled down to $15.22, up 4% from previous close.

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What Is The Market Telling Us

Sonos’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 1.1% on the news that reports revealed increased competition in the consumer electronics space as Sony Group announced plans to form a joint venture with TCL Electronics. 

The new venture, which planned to create televisions and home audio equipment, would be 51% owned by TCL, with Sony holding the remaining 49%. This development signaled a strategic shift for Sony, allowing it to focus more on its games and entertainment businesses. For a specialized company like Sonos, the formation of a new competitor in the home audio market by two established electronics giants raised concerns among investors about future market share and pricing pressure.

Sonos is down 13% since the beginning of the year, and at $15.22 per share, it is trading 20.6% below its 52-week high of $19.16 from December 2025. Investors who bought $1,000 worth of Sonos’s shares 5 years ago would now be looking at an investment worth $499.02.

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