Sonos shares surge 11.14% premarket after Q1 adjusted EPS of $0.93 and $546M revenue beat estimates.

Sonos (SONO) surged 11.14% in premarket trading following the release of its fiscal Q1 2026 earnings, which significantly exceeded expectations. The company reported adjusted earnings per share (EPS) of $0.93, surpassing the estimated $0.68, while revenue reached $546 million, above the projected $523.21 million. Strong cost-cutting measures, including a 26% year-over-year reduction in R&D spending, drove a 45% increase in adjusted EBITDA to $132 million and a 9.7 percentage point improvement in operating margin to 18.4%. Additionally, Rosenblatt Securities reiterated a "Buy" rating with a $21 price target, citing robust free cash flow generation and a 7% free cash flow yield. These results.