SoundHound AI (SOUN) Stock: Analysts Project 75% Gains Ahead of Q1 Earnings

Key Takeaways

• Q1 2026 earnings release scheduled for May 7; Wall Street projects revenue between $42.5M and $42.8M, marking approximately 46% annual growth
• Shares have fallen roughly 18% in 2026 so far and plunged 66% since hitting December 2024 highs
• Wall Street maintains Strong Buy rating with consensus price target of $14.00, indicating potential gains near 75%
• Company announced acquisition of LivePerson, marking its most significant deal to date
• 2026 revenue outlook set at $225M to $260M; pathway to profitability continues to dominate investor discussions

As SoundHound AI approaches its first-quarter 2026 financial results on May 7, investors and analysts are paying close attention. The company’s shares have struggled this year, declining approximately 18%, prompting questions about whether its expansion narrative can withstand current headwinds.

SoundHound AI, Inc., SOUN

Wall Street forecasters anticipate first-quarter revenue ranging from $42.5 million to $42.8 million, representing year-over-year expansion of about 46%. This projection follows an impressive fourth quarter performance that saw the company generate $55.1 million in revenue, climbing 59% compared to the prior year.

Looking at the complete fiscal year, management has established revenue guidance between $225 million and $260 million. This represents significant growth from the record $168.9 million achieved in 2025, which had already nearly doubled the $84.7 million reported during 2024.

Yet the stock price tells a different story. SOUN shares have tumbled approximately 66% from the December 2024 high of $22.17, currently changing hands near $8.02.

Wall Street Maintains Optimistic Outlook

Despite recent weakness, analyst sentiment remains firmly positive. TipRanks data shows SOUN holds a Strong Buy consensus, derived from five Buy recommendations and a single Hold rating issued over the last three months. The mean price target stands at $14.00, implying potential appreciation of approximately 74.5% from present trading levels.

Following last week’s LivePerson acquisition announcement, D.A. Davidson’s Gil Luria maintained his Buy rating alongside a $14 price objective. He characterized the transaction as the company’s most substantial acquisition yet and suggested it holds promise for creating long-term shareholder value, while noting that execution and integration represent risks worth tracking.

Wedbush likewise preserved its Buy rating with a $12 target after reviewing the deal terms. The firm emphasized the data advantage—the merged entity would handle tens of billions of customer interactions each year, which Wedbush believes constitutes a significant competitive differentiator.

Valuation Metrics Under Scrutiny

The LivePerson transaction expands SoundHound’s existing technology suite, which encompasses solutions like Dynamic Drive-Thru, automotive Voice AI applications, and the Amelia 7 platform designed for creating customized AI agents.

Valuation metrics present a challenge for some market participants. SoundHound currently commands a price-to-sales multiple near 20, positioning it above most Magnificent Seven companies—with Nvidia being the notable exception. Using the midpoint of 2026 projections on a forward-looking basis, that multiple contracts to approximately 14.4.

Path to Profitability Remains Unclear

Continued losses represent a persistent concern among stakeholders. The company recorded an adjusted net loss of $53.8 million during 2025, showing improvement from the $69.1 million deficit in 2024. While progress is evident, profitability remains elusive.

Analysts are modeling a loss per share of $0.10 for Q1 2026, representing substantial improvement versus the $0.31 loss recorded in the year-ago quarter.

SoundHound concluded 2025 with $248 million in cash reserves and zero debt obligations, providing financial flexibility as it executes growth initiatives.

When earnings arrive on May 7, market participants will scrutinize revenue performance, potential revisions to annual guidance, and management’s timeline for integrating LivePerson into operations.

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