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SGI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Somnigroup International Inc. (SGI) stock moving?
Somnigroup reported Q3 2026 results on Nov 9 that missed on both lines: adjusted EPS of $1.04 against a $1.05 estimate and sales of $2.351B against $2.426B. GAAP EPS fell 10.8% to $0.74, which management tied to Leggett & Platt deal costs. The Leggett & Platt business added $372.6M of sales, but organic segment sales declined: Tempur Sealy North America fell 5.8% to $693.1M, International fell 12.3% to $276.8M with Dreams down 34.7% after an ERP disruption, and Mattress Firm fell 5.8% to $1.008B on softer online sales. Balance sheet and margin results were stronger. Gross margin rose to 64.7% from 58.4%, helped by tariff refunds and synergies, operating cash flow was $349M, and leverage fell to 2.69x from 3.28x. The company narrowed FY2026 adjusted EPS guidance to $2.85-$2.95 from $2.85-$3.15, which sits below the $3.11 consensus. Analysts stayed constructive but trimmed targets: UBS cut to $87 from $102 with a Buy rating, Morgan Stanley cut to $90 with Overweight, and KeyBanc cut to $100 with Overweight. The shares rose 3.3% to $66.27 on Nov 9 on 7.3M volume, then fell 5.3% to $62.78 on Nov 10 on 4.5M volume, about 10% below the Nov 4 close of $69.81. The Nov 10 low of $61.95 held above the late-October lows near $61.2. A $0.17 quarterly dividend is payable Dec 7.
News behind the analysis
- UBS Maintains Buy on Somnigroup International, Lowers Price Target to $87UBS kept its Buy rating on Somnigroup and cut its price target to $87 after the third-quarter results.
- UBS Adjusts Somnigroup International Price Target to $87 From $102UBS lowered its price target from $102 to $87 while maintaining its Buy rating on the stock.
- Morgan Stanley Maintains Overweight on Somnigroup International, Lowers Price Target to $90Morgan Stanley kept an Overweight rating and reduced its price target to $90.
- Keybanc Maintains Overweight on Somnigroup International, Lowers Price Target to $100KeyBanc kept an Overweight rating and lowered its price target to $100.
- Somnigroup International Q3 2026 Earnings Call TranscriptManagement discussed third-quarter 2026 results, including the Leggett & Platt contribution, segment sales declines, and margin gains.
- Somnigroup International Inc. Declares Fourth Quarter Cash DividendThe company declared a fourth-quarter cash dividend of $0.17 per share, payable on December 7, 2026.
- Somnigroup International Inc. Reports Third Quarter 2026 Financial ResultsSomnigroup reported Q3 2026 results and revised its full-year 2026 financial outlook.
- Somnigroup International Narrows FY2026 Adj EPS Guidance from $2.85-$3.15 to $2.85-$2.95 vs $3.11 EstThe company narrowed its FY2026 adjusted EPS guidance to $2.85-$2.95, cutting the top end and sitting below the $3.11 consensus estimate.
- Somnigroup International Q3 Adj. EPS $1.04 Misses $1.05 Estimate, Sales $2.351B Miss $2.426B EstimateAdjusted EPS of $1.04 narrowly missed the $1.05 estimate, and sales of $2.351B fell short of the $2.426B estimate.
- Somnigroup Q3 GAAP EPS $0.74 vs $0.83 Prior, Down 10.8%, On Leggett & Platt Deal CostsGAAP EPS fell 10.8% year over year to $0.74, with the decline attributed to costs tied to the Leggett & Platt deal.
About Somnigroup International Inc.
Somnigroup International is a global bedding company based in Lexington, Kentucky. It was formerly Tempur Sealy (ticker TPX) and took its new name in February 2025 after buying Mattress Firm. It owns the Tempur-Pedic, Sealy and Stearns & Foster brands, and it also runs one of the largest US mattress store chains. In 2026 shareholders of Leggett & Platt approved a merger with the company, which brings in a major supplier of bedding parts.
How it makes money
It makes and sells mattresses, pillows and other sleep products. Sales go through two channels: wholesale, meaning third-party retailers, hotels and healthcare buyers, and direct, meaning company-owned stores such as Mattress Firm and Tempur-Pedic shops, plus online and call centres. Its segments are Tempur Sealy North America, Tempur Sealy International and Mattress Firm. Revenue over the last twelve months is roughly $7.6 billion. The company also pays a quarterly dividend.
What usually moves SGI
- US consumer spending on big-ticket items
- Housing market activity and interest rates
- Mattress Firm integration and retail store traffic
- Leggett & Platt merger integration and debt levels
- Raw material costs such as foam and steel