Key Takeaways
- Q1 2026 earnings scheduled for May 7, with Wall Street projecting revenue between $42.5M and $42.8M—approximately 46% year-over-year increase
- Shares have declined roughly 18% in 2026 and dropped 66% from December 2024 highs
- Strong Buy consensus among analysts with $14.00 average target price, representing approximately 75% potential gain
- Company announced acquisition of LivePerson, marking its most significant deal to date
- 2026 annual revenue outlook set at $225M–$260M; achieving profitability remains critical challenge
As SoundHound AI prepares to unveil its Q1 2026 financial results on May 7, market participants are closely monitoring whether the company can sustain its growth momentum. The voice AI specialist has experienced turbulence in recent months, with shares falling approximately 18% since January, prompting questions about the durability of its expansion narrative.
Wall Street forecasters anticipate first-quarter revenue ranging from $42.5 million to $42.8 million, marking approximately 46% expansion compared to the same period last year. This projection comes on the heels of an impressive Q4 performance that saw the company generate $55.1 million in revenue—a 59% year-over-year surge.
Looking at the broader picture, SoundHound has issued full-year 2026 revenue guidance spanning $225 million to $260 million. This represents significant growth from the company’s record $168.9 million in 2025 revenue, which nearly doubled the $84.7 million reported during 2024.
Yet the stock’s performance tells a different story. SOUN has plummeted approximately 66% from its December 2024 high of $22.17, currently hovering around $8.02 per share.
Wall Street Maintains Optimistic Stance
Despite recent price weakness, analyst sentiment remains firmly positive. TipRanks data shows SOUN carrying a Strong Buy consensus, supported by five Buy recommendations and a single Hold rating issued over the past three months. The Street’s average price objective stands at $14.00, implying potential upside of approximately 74.5% from present trading levels.
D.A. Davidson’s Gil Luria maintained his Buy recommendation with a $14 target following last week’s announcement regarding SoundHound’s planned LivePerson acquisition. Luria characterized the transaction as the company’s most substantial acquisition and suggested it could unlock significant long-term value, while cautioning that execution and integration challenges warrant attention.
Wedbush Securities similarly retained its Buy rating, though with a $12 price objective, after the LivePerson news. The firm emphasized the strategic data advantage—noting the merged entity would handle tens of billions of annual customer interactions, positioning it favorably against competitors.
Valuation Metrics Under Scrutiny
The LivePerson transaction complements SoundHound’s current product suite, which encompasses solutions like Dynamic Drive-Thru, automotive Voice AI systems, and the Amelia 7 platform designed for custom AI agent development.
Valuation remains a focal point for market observers. SoundHound currently commands a price-to-sales multiple near 20x, exceeding most Magnificent Seven technology stocks—with the notable exception of Nvidia. Using the midpoint of 2026 revenue guidance, the forward P/S ratio moderates to approximately 14.4x.
Path to Profitability Remains Uncertain
Continued losses present an ongoing challenge. The company recorded an adjusted net loss of $53.8 million during 2025, representing improvement from the $69.1 million deficit in 2024—progress, though profitability remains elusive.
For Q1 2026, analysts project a loss per share of $0.10, considerably narrower than the $0.31 loss reported in the year-ago quarter—demonstrating notable advancement.
SoundHound closed 2025 with $248 million in cash reserves and zero debt obligations, providing financial flexibility for operations and strategic initiatives.
When earnings arrive on May 7, market participants will scrutinize top-line performance, potential revisions to annual guidance, and management’s timeline for integrating LivePerson into the broader organization.
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