Somnigroup International (NYSE:SGI) Releases Earnings Results, Beats Expectations By $0.02 EPS

Somnigroup International (NYSE:SGI) announced its quarterly earnings data on Thursday. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.02, FiscalAI reports. The company had revenue of $1.80 billion for the quarter. Somnigroup International had a return on equity of 19.62% and a net margin of 6.80%.The firm’s revenue for the quarter was up 12.3% compared to the same quarter last year. During the same period last year, the company earned $0.49 EPS. Somnigroup International updated its FY 2026 guidance to 3.000-3.400 EPS.

Here are the key takeaways from Somnigroup International’s conference call:

• Strong Q1 results — net sales rose 12% to $1.8B, adjusted EBITDA grew 20% to $297M and adjusted EPS increased 20% to $0.59, with record Q1 operating cash flow and leverage improving to 3.1x (management expects to return to a 2–3x target soon).
• Management announced modest global pricing to offset commodity inflation — they expect about a $100M annualized pricing lift (?$50M in H2) with a transitory ~ $10M Q2 profit headwind, and expect pricing to be dollar?neutral to full?year earnings.
• Mattress Firm outperformed on sales (flat comps) but experienced margin compression — adjusted gross margin declined ~360 bps to 31.5% and operating margin fell to 4.9% due to promotional spend, product mix and some fixed-cost deleverage.
• International growth and Dreams outperformed — Tempur Sealy International grew 16% reported (7% constant currency) and U.K. retailer Dreams drove strong customer engagement and order volume, supporting longer?term growth.
• Planned combination with Leggett & Platt (~$2.5B including debt) is expected to close by year?end, operate as a separate business unit, be accretive in year one and deliver at least $50M of annual run?rate EBITDA synergies.

Somnigroup International Stock Performance

SGI stock traded down $1.23 on Friday, hitting $69.44. 2,794,641 shares of the company’s stock were exchanged, compared to its average volume of 3,179,017. Somnigroup International has a 12-month low of $59.01 and a 12-month high of $98.56. The stock’s 50 day simple moving average is $78.29. The company has a current ratio of 0.78, a quick ratio of 0.42 and a debt-to-equity ratio of 1.41. The firm has a market capitalization of $14.61 billion, a PE ratio of 28.34, a P/E/G ratio of 1.10 and a beta of 1.25.

Somnigroup International Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, May 21st. Somnigroup International’s payout ratio is 27.76%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SGI. JPMorgan Chase & Co. purchased a new position in Somnigroup International during the 3rd quarter worth $269,540,000. Artisan Partners Limited Partnership purchased a new position in Somnigroup International during the 4th quarter worth $274,323,000. Norges Bank purchased a new position in Somnigroup International during the 4th quarter worth $270,814,000. Allspring Global Investments Holdings LLC grew its stake in Somnigroup International by 62.5% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,046,320 shares of the company’s stock worth $224,240,000 after buying an additional 1,171,485 shares during the last quarter. Finally, Squarepoint Ops LLC grew its stake in Somnigroup International by 125.4% during the 4th quarter. Squarepoint Ops LLC now owns 1,232,152 shares of the company’s stock valued at $110,007,000 after purchasing an additional 685,420 shares during the last quarter. 99.86% of the stock is currently owned by hedge funds and other institutional investors.

Somnigroup International News Roundup

Here are the key news stories impacting Somnigroup International this week:

• Positive Sentiment: Somnigroup posted first-quarter adjusted EPS of $0.59, topping Wall Street estimates, while revenue rose 12.3% year over year to $1.80 billion and operating cash flow hit a record $246 million. Somnigroup International Inc. Reports First Quarter 2026 Results
• Positive Sentiment: The board declared a quarterly cash dividend of $0.17 per share, underscoring continued shareholder returns. Somnigroup Announces Second Quarter Cash Dividend
• Neutral Sentiment: Management reaffirmed full-year 2026 EPS guidance of $3.00 to $3.40, which matched expectations closely but did not provide an upside surprise. Somnigroup International Inc. Reports First Quarter 2026 Results
• Negative Sentiment: Investors appear concerned about softness in bedding demand and profitability pressure at Mattress Firm, with commentary pointing to promotional activity and margin compression. SGI Q1 deep dive: Margin expansion amid challenging bedding market and demand pressures
• Negative Sentiment: Some market coverage framed the stock’s decline as a reaction to the earnings report, with scrutiny on guidance, retail margins, and deal-related uncertainty tied to the proposed Leggett & Platt acquisition. Somnigroup (SGI) falls after Q1 report, as guidance and retail margins draw scrutiny

Wall Street Analyst Weigh In

Several brokerages have weighed in on SGI. Truist Financial upped their target price on Somnigroup International from $105.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, March 5th. Jefferies Financial Group raised Somnigroup International from a “hold” rating to a “buy” rating and dropped their price target for the stock from $90.00 to $88.00 in a research report on Thursday, March 26th. Bank of America dropped their price target on Somnigroup International from $106.00 to $96.00 and set a “buy” rating on the stock in a research report on Tuesday, April 14th. Stephens reissued an “equal weight” rating and set a $89.00 price target on shares of Somnigroup International in a research report on Tuesday, April 14th. Finally, UBS Group dropped their price target on Somnigroup International from $110.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $98.60.

Somnigroup International Company Profile

Somnigroup International Inc, together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare.