Ooma Reports Strong Q1 2027 Financial Results, Analysts Raise Price Targets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2026
0mins
Source: Fool
- Earnings Beat: Ooma reported Q1 2027 revenue of $81.1 million and adjusted EPS of $0.35, surpassing analysts' expectations of $79.8 million and $0.32, indicating strong market performance and growth potential.
- Growth Drivers: The robust quarterly performance was attributed to increased AirDial sales, organic growth from Ooma Business, and successful integration of FluentStream and Phone.com, collectively driving significant revenue growth.
- Positive Outlook: Management provided an optimistic 2027 guidance, projecting revenue between $326 million and $328.5 million and adjusted EPS of $1.29 to $1.34, compared to fiscal 2026's $273.6 million and $1.04 adjusted EPS, showcasing confidence in sustained growth.
- Analyst Price Target Increases: Following the earnings report, several analysts raised their price targets for Ooma, with Lake Street increasing from $18 to $23, Alliance Global from $17 to $23, and Benchmark from $23 to $24, reflecting a positive market sentiment towards Ooma's future performance.
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Analyst Views on OOMA
Wall Street analysts forecast OOMA stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 17.290
Low
18.00
Averages
18.63
High
20.00
Current: 17.290
Low
18.00
Averages
18.63
High
20.00
About OOMA
Ooma, Inc. delivers phone, messaging, video and advanced communications services. It offers a range of solutions to fit each business’ needs, along with personalized support to resolve any issues in deploying and maintaining its services. Its solutions include Ooma Business, which includes Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, and OnSIP; Ooma Residential, which includes Ooma Telo basic and premier services as well as its smart security solutions, and Talkatone mobile app. Ooma Office is a cloud-based multi-user communications system for small and medium-sized businesses designed to manage communications in and out of the office with a suite of business features. Ooma Enterprise is a customizable and scalable unified-communications-as-a-service (UCaaS) solution that complements Ooma Office. It also sells a variety of accessories, including handsets with smartphone-like features, remote phone jacks and battery backup, as well as a range of sensors for home security.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ooma Reports Strong Q1 2027 Financial Results, Analysts Raise Price Targets
- Earnings Beat: Ooma reported Q1 2027 revenue of $81.1 million and adjusted EPS of $0.35, surpassing analysts' expectations of $79.8 million and $0.32, indicating strong market performance and growth potential.
- Growth Drivers: The robust quarterly performance was attributed to increased AirDial sales, organic growth from Ooma Business, and successful integration of FluentStream and Phone.com, collectively driving significant revenue growth.
- Positive Outlook: Management provided an optimistic 2027 guidance, projecting revenue between $326 million and $328.5 million and adjusted EPS of $1.29 to $1.34, compared to fiscal 2026's $273.6 million and $1.04 adjusted EPS, showcasing confidence in sustained growth.
- Analyst Price Target Increases: Following the earnings report, several analysts raised their price targets for Ooma, with Lake Street increasing from $18 to $23, Alliance Global from $17 to $23, and Benchmark from $23 to $24, reflecting a positive market sentiment towards Ooma's future performance.
See More
Ooma Reports Strong Q1 FY 2027 Earnings with 25% Revenue Growth
- Strong Financial Performance: Ooma reported Q1 FY 2027 revenue of $81.1 million, a 25% year-over-year increase, with non-GAAP net income reaching $9.7 million, up 73%, indicating robust growth momentum in the market.
- AirDial Service Surge: AirDial services revenue soared by 80% year-over-year in Q1, with new line installations more than doubling compared to the previous year, highlighting the product as a key growth driver for the company.
- Product Innovation and Market Expansion: Ooma introduced new features such as equipment disconnect detection and off-hook alerts, and successfully secured two additional AirDial resellers in Q1, further expanding its market footprint.
- Optimistic Full-Year Outlook: The company raised its FY 2027 total revenue guidance to $326 million to $328.5 million, with non-GAAP diluted EPS expectations of $1.29 to $1.34, reflecting management's confidence in future performance.
See More
Ooma Reports Strong Q1 Growth with 25% Revenue Increase
- Significant Revenue Growth: Ooma's Q1 revenue reached $81.8 million, reflecting a 25% year-over-year increase, indicating the company's strengthening competitive position and potential for future revenue growth.
- Substantial Net Income Increase: Non-GAAP net income rose to $9.7 million, a 73% year-over-year increase, showcasing significant improvements in cost control and operational efficiency, which bolsters investor confidence.
- Strong Business Subscription Services: Revenue from business subscriptions and services grew by 38%, accounting for 69% of total revenue, indicating Ooma's increasing penetration in the enterprise market and potential for further market share expansion.
- AI Services with Huge Potential: The newly launched AI transcription and answering services are expected to drive additional revenue growth, and despite facing a negative product gross margin of 31%, the company remains optimistic about the demand for AI services and plans to enhance customer communications to boost revenue.
See More
Ooma Q1 Earnings Exceed Expectations
- Earnings Beat: Ooma reported a Q1 non-GAAP EPS of $0.35, exceeding expectations by $0.03, which reflects the company's strengthening profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $81.1 million in Q1, representing a 24.7% year-over-year increase and surpassing market expectations by $1.26 million, indicating strong competitive positioning and customer demand.
- Optimistic Outlook: For Q2 of fiscal 2027, Ooma expects revenue in the range of $81.6 million to $82.3 million, exceeding the consensus of $80.24 million, showcasing confidence in future growth.
- Full-Year Projections: Ooma anticipates total revenue for fiscal 2027 to be between $326.0 million and $328.5 million, with non-GAAP EPS expected to be between $1.29 and $1.34, aligning with market expectations and demonstrating sustained profitability amid stable growth.
See More
Ooma AirDial Named 2026 Competitive Strategy Leader in POTS Replacement
- Market Recognition: Ooma AirDial® has been named the 2026 Competitive Strategy Leader for Best Practices in the North American POTS Replacement Industry by Frost & Sullivan for the second consecutive year, highlighting its leadership in a rapidly evolving market.
- Industry Transition Pressure: With the FCC shortening notice periods to 90 days, 50% of organizations surveyed plan to increase investments in next-generation solutions by 2028 to address the phasing out of analog lines, indicating a pressing demand for modernization solutions.
- Technological Advantage: Ooma's AirDial utilizes MultiPath Technology, combining wireless LTE and wired Ethernet to enhance service reliability and compliance, particularly for critical applications like fire alarms and emergency phones, ensuring service continuity.
- Strategic Development: AirDial not only addresses market needs overlooked by traditional IP telephony and UCaaS solutions but also aids organizations in modernizing critical connectivity with an easy-to-implement and manage solution, enhancing the company's competitive position.
See More
Ooma Launches AI-Powered Communication Services
- AI Transcription Feature: Ooma's AI transcription capability automatically converts call recordings into searchable text and concise summaries, enabling sales and service teams to review conversations more efficiently and confirm next steps, thereby enhancing operational efficiency and customer satisfaction.
- Intelligent Answering Service: Offered at just $14.99 per license, the AI Answering Service can handle missed calls and capture key information, helping businesses reduce call abandonment and voicemails while maintaining a professional and consistent customer service experience.
- Virtual Front Desk Functionality: The AI Receptionist (Beta) acts as a 24/7 virtual front desk capable of managing complex customer inquiries and intelligently routing calls, starting at $49.99 per license, which helps businesses enhance customer experience and optimize resource allocation.
- AI Insights Analytics: AI Insights (Beta) provides an intuitive dashboard for call analytics, automatically extracting call topics and customer sentiment, enabling businesses to identify operational issues and revenue growth opportunities, thus driving smarter business decision-making.
See More
Ooma Reports Strong Q1 2027 Financial Results, Analysts Raise Price Targets
- Earnings Beat: Ooma reported Q1 2027 revenue of $81.1 million and adjusted EPS of $0.35, surpassing analysts' expectations of $79.8 million and $0.32, indicating strong market performance and growth potential.
- Growth Drivers: The robust quarterly performance was attributed to increased AirDial sales, organic growth from Ooma Business, and successful integration of FluentStream and Phone.com, collectively driving significant revenue growth.
- Positive Outlook: Management provided an optimistic 2027 guidance, projecting revenue between $326 million and $328.5 million and adjusted EPS of $1.29 to $1.34, compared to fiscal 2026's $273.6 million and $1.04 adjusted EPS, showcasing confidence in sustained growth.
- Analyst Price Target Increases: Following the earnings report, several analysts raised their price targets for Ooma, with Lake Street increasing from $18 to $23, Alliance Global from $17 to $23, and Benchmark from $23 to $24, reflecting a positive market sentiment towards Ooma's future performance.
See More
Ooma Reports Strong Q1 FY 2027 Earnings with 25% Revenue Growth
- Strong Financial Performance: Ooma reported Q1 FY 2027 revenue of $81.1 million, a 25% year-over-year increase, with non-GAAP net income reaching $9.7 million, up 73%, indicating robust growth momentum in the market.
- AirDial Service Surge: AirDial services revenue soared by 80% year-over-year in Q1, with new line installations more than doubling compared to the previous year, highlighting the product as a key growth driver for the company.
- Product Innovation and Market Expansion: Ooma introduced new features such as equipment disconnect detection and off-hook alerts, and successfully secured two additional AirDial resellers in Q1, further expanding its market footprint.
- Optimistic Full-Year Outlook: The company raised its FY 2027 total revenue guidance to $326 million to $328.5 million, with non-GAAP diluted EPS expectations of $1.29 to $1.34, reflecting management's confidence in future performance.
See More
Ooma Reports Strong Q1 Growth with 25% Revenue Increase
- Significant Revenue Growth: Ooma's Q1 revenue reached $81.8 million, reflecting a 25% year-over-year increase, indicating the company's strengthening competitive position and potential for future revenue growth.
- Substantial Net Income Increase: Non-GAAP net income rose to $9.7 million, a 73% year-over-year increase, showcasing significant improvements in cost control and operational efficiency, which bolsters investor confidence.
- Strong Business Subscription Services: Revenue from business subscriptions and services grew by 38%, accounting for 69% of total revenue, indicating Ooma's increasing penetration in the enterprise market and potential for further market share expansion.
- AI Services with Huge Potential: The newly launched AI transcription and answering services are expected to drive additional revenue growth, and despite facing a negative product gross margin of 31%, the company remains optimistic about the demand for AI services and plans to enhance customer communications to boost revenue.
See More
Ooma Q1 Earnings Exceed Expectations
- Earnings Beat: Ooma reported a Q1 non-GAAP EPS of $0.35, exceeding expectations by $0.03, which reflects the company's strengthening profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $81.1 million in Q1, representing a 24.7% year-over-year increase and surpassing market expectations by $1.26 million, indicating strong competitive positioning and customer demand.
- Optimistic Outlook: For Q2 of fiscal 2027, Ooma expects revenue in the range of $81.6 million to $82.3 million, exceeding the consensus of $80.24 million, showcasing confidence in future growth.
- Full-Year Projections: Ooma anticipates total revenue for fiscal 2027 to be between $326.0 million and $328.5 million, with non-GAAP EPS expected to be between $1.29 and $1.34, aligning with market expectations and demonstrating sustained profitability amid stable growth.
See More
Ooma AirDial Named 2026 Competitive Strategy Leader in POTS Replacement
- Market Recognition: Ooma AirDial® has been named the 2026 Competitive Strategy Leader for Best Practices in the North American POTS Replacement Industry by Frost & Sullivan for the second consecutive year, highlighting its leadership in a rapidly evolving market.
- Industry Transition Pressure: With the FCC shortening notice periods to 90 days, 50% of organizations surveyed plan to increase investments in next-generation solutions by 2028 to address the phasing out of analog lines, indicating a pressing demand for modernization solutions.
- Technological Advantage: Ooma's AirDial utilizes MultiPath Technology, combining wireless LTE and wired Ethernet to enhance service reliability and compliance, particularly for critical applications like fire alarms and emergency phones, ensuring service continuity.
- Strategic Development: AirDial not only addresses market needs overlooked by traditional IP telephony and UCaaS solutions but also aids organizations in modernizing critical connectivity with an easy-to-implement and manage solution, enhancing the company's competitive position.
See More
Ooma Launches AI-Powered Communication Services
- AI Transcription Feature: Ooma's AI transcription capability automatically converts call recordings into searchable text and concise summaries, enabling sales and service teams to review conversations more efficiently and confirm next steps, thereby enhancing operational efficiency and customer satisfaction.
- Intelligent Answering Service: Offered at just $14.99 per license, the AI Answering Service can handle missed calls and capture key information, helping businesses reduce call abandonment and voicemails while maintaining a professional and consistent customer service experience.
- Virtual Front Desk Functionality: The AI Receptionist (Beta) acts as a 24/7 virtual front desk capable of managing complex customer inquiries and intelligently routing calls, starting at $49.99 per license, which helps businesses enhance customer experience and optimize resource allocation.
- AI Insights Analytics: AI Insights (Beta) provides an intuitive dashboard for call analytics, automatically extracting call topics and customer sentiment, enabling businesses to identify operational issues and revenue growth opportunities, thus driving smarter business decision-making.
See More
