Ooma (NYSE: OOMA), the advanced business communications provider, reported first-quarter fiscal 2027 financial results that surpassed analyst expectations, sparking a sharp rally in its share price.
As of 10:19 a.m. ET, Ooma shares were up 3.7%, having pulled back from an earlier peak gain of 13.4% on the session.
The company posted Q1 2027 revenue of $81.1 million, beating the analyst consensus estimate of $79.8 million for the quarter.
Ooma also reported adjusted earnings per share of $0.35, topping the $0.32 analysts had forecast ahead of the results.
Management credited the strong quarterly performance to growth in AirDial sales, organic growth from Ooma Business, and the successful integration of acquisitions including FluentStream and Phone.com.
Looking ahead, the company provided fiscal 2027 revenue guidance of $326 million to $328.5 million, with adjusted EPS forecast in a range of $1.29 to $1.34.
Those figures represent meaningful year-over-year growth compared to fiscal 2026, when Ooma reported sales of $273.6 million and adjusted EPS of $1.04.
Following the results, several analysts raised their price targets on the stock, with Lake Street lifting its target to $23 from $18 and Alliance Global raising its target to $23 from $17.
Benchmark also nudged its price target higher, moving to $24 from $23 in the wake of the quarterly beat and improved full-year outlook.
On a valuation basis, Ooma shares are currently trading at 14.5 times operating cash flow, a discount to their five-year average cash flow multiple of 15.2.
