Williams-Sonoma, Inc. (WSM) AI Stock Analysis

Williams-Sonoma, Inc. operates as an omni-channel retailer specializing in cooking, dining, and home furnishings. Its brand portfolio includes cookware, electrics, and outdoor furniture under Williams Sonoma Home, alongside home decor and lifestyle furnishings. The company owns Pottery Barn, which offers furniture, bedding, lighting, and decorative accessories, as well as Pottery Barn Kids and Pottery Barn Teen. Modern aesthetics are addressed through West Elm, while Rejuvenation provides made-to-order lighting, hardware, and furniture inspired by historical designs. Additionally, Mark and Graham provides personalized accessories and entertaining essentials. The company also operates an advanced 3-D imaging and augmented reality platform for home decor shopping.

Annual revenue moved from $8.25B in FY2022 to $8.67B in FY2023, before contracting to $7.75B in FY2024 and $7.71B in FY2025. In FY2026, revenue increased 1.2% to $7.81B, delivering a 5-year revenue CAGR of 2.9%. Gross margin widened from 44.0% in FY2022 to 46.2% in FY2026, while operating margin rose from 17.6% to 18.1%. Net income stood at $1.09B in FY2026 with diluted EPS of $8.85. For the latest quarter ended July 31, 2026, quarterly revenue growth accelerated to 6.7% year-over-year, and quarterly earnings grew 42.0%, supporting trailing twelve-month revenue of $8.01B and an operating margin of 17.3%.

As of July 31, 2026, Williams-Sonoma held $1.03B in cash and short-term investments against $1.53B in total debt, leaving net debt at $499.0M. The company maintains a current ratio of 1.45 and a debt-to-equity ratio of 0.71 on $2.14B in shareholders' equity. In FY2026, operating cash flow reached $1.31B and free cash flow was $1.06B. Capital allocation during FY2026 included $259.4M in capital expenditures, $854.0M in share buybacks, and $316.5M in dividends paid, contributing to a 21.7% reduction in share count over 5 years.

At a stock price of $250.16, Williams-Sonoma trades at a trailing P/E of 25.7x and a forward P/E of 24.6x, compared to medians of 19.7x and 15.6x for its S&P 500 Consumer Cyclical peers. Its price-to-sales multiple is 3.7x and EV-to-EBITDA is 16.8x, both above peer group medians of 2.0x and 13.2x, respectively. The company generated a 1-year return of 35.7% and a 5-year return of 202.6%, outperforming the S&P 500 SPY returns of 16.8% over 1 year and 83.0% over 5 years.

Williams-Sonoma pays a quarterly dividend with an annualized forward payout of $3.04 per share, translating to a dividend yield of 1.22%. The dividend payout ratio stands at 32.6%, and the company has paid dividends for 21 consecutive years. Its 5-year annualized dividend growth rate is 21.0%, with the most recent ex-dividend date on October 16, 2026.

Analyst coverage consists of 9 Strong Buy, 2 Buy, 11 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $246.35, representing a 1.5% discount to the last close of $250.16. For the fiscal year ending January 31, 2027, consensus estimates project EPS of $9.85, up 11.4%, on revenue of $8.27B. Williams-Sonoma has exceeded EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for November 18, 2026.

This page is an AI-written research summary of Williams-Sonoma, Inc. (WSM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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