DailyIQ
Last updated 3 minutes ago

SOUN·SoundHound AI Inc.

$.
-. (-.%)
After Hours
High
$6.88
Open
$6.85
Market Cap
2.87B
52W High
$22.17
Low
$6.47
P. Close
$6.64
P/E
-
52W Low
$5.83
Fwd P/E
-55.33
DailyIQ Est.
$15.18
Technical Score (1D)
23
SELL
News Sentiment
62
BULLISH
SOUN has just reported Q1 2026 revenue of $44.2 million, up 52 % YoY, after shifting from an automotive‑centric focus to a broader conversational and agentic AI platform aimed at enterprise customers, which could lift recurring revenue streams. Core automotive and IoT AI revenues excluding acquisitions surged 88 %, confirming that existing product lines remain strong while the company expands into new verticals. This diversification into restaurants, retail, healthcare, financial services, telecommunications, and energy reduces SOUN’s dependence on a single end‑market, potentially cushioning the firm against sector‑specific downturns. However, the company still faces the risk of converting its platform expansion, acquisitions, and new products into improved margins and steadier execution, which could lead to earnings volatility. SOUN’s growth hinges on enterprise adoption of its conversational AI across voice, chat, and digital channels, a trend that could accelerate if the company secures larger contracts. The broader shift toward agentic AI platforms positions SOUN in a competitive landscape with firms like BigBear.ai, which focus on defense and industrial supply chains, highlighting a strategic differentiation that may influence investor sentiment. Over the next 1–10 trading days, the market will likely focus on how quickly SOUN can translate its expanded product portfolio into higher margins and whether its enterprise sales pipeline is robust. Investors should also monitor any updates on the company’s acquisition strategy, as additional integrations could either accelerate growth or strain resources.
Earnings Summary
SoundHound AI (SOUN) is a technology firm that builds independent voice‑AI solutions, notably the Houndify platform, enabling brands to deploy custom voice assistants across automotive, TV, IoT, and customer‑service sectors; it operates within the broader software‑application technology space. In the most recent two quarters, revenue rose from $42.7 million in Q2 2025 to $55.1 million in Q4 2025, a 29 % increase, but fell to $44.2 million in Q1 2026, a 20 % decline, while EPS slipped from a modest $‑0.03 in Q3 2025 to $‑0.06 in Q1 2026, missing estimates in both periods; the company beat analyst forecasts in Q2 and Q3 2025 but missed in Q4 2025 and Q1 2026, indicating a recent reversal in earnings momentum. Historically, SOUN has shown a pattern of revenue acceleration followed by earnings misses, with YoY growth evident in the jump from Q2 to Q4 2025 but a subsequent dip in Q1 2026, and a consistent trend of net losses despite top‑line expansion. Recent news highlights the company’s 2026 AI Breakthrough Award for its OASYS platform, a first self‑learning conversational AI system, which could enhance its competitive positioning; the award, coupled with a $100 million acquisition of LivePerson and early pilot successes in drive‑through AI, signals potential revenue upside, yet insider share sales and macro‑rate pressures raise concerns about valuation and margin erosion. Forward‑looking watch points include monitoring Q2 2026 guidance for cost‑control initiatives and capital‑structure adjustments, tracking the integration progress of LivePerson and the rollout of OASYS‑powered pilots, and observing any shifts in gross‑margin performance that could indicate whether the company can translate accelerated revenue into improved profitability.

EPS

EstBeatMiss
$-0.07$-0.06$-0.04$-0.02$-0.01Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$-0.04 - -
Q1'26$-0.04$-0.06-33.6%
Q4'25$-0.02$-0.02-25.0%
Q3'25$-0.03$-0.03+11.8%
Q2'25$-0.05$-0.03+42.9%
Q1'25$-0.06$-0.06+5.3%

Revenue

EstBeatMiss
$25M$34M$42M$51M$59MQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$53M - -
Q1'26$43M$44M+1.8%
Q4'25$55M$55M-0.0%
Q3'25 - $42M -
Q2'25 - $43M -
Q1'25 - $29M -

Market Data

SOUN Stock Snapshot

SOUN is currently trading at $6.61, giving SoundHound AI Inc. a market cap of 2.87B. Today's range spans $6.46–$6.88, with shares opening at $6.85 and moving down $0.03 (0.4%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 62/100.

Over the past year SOUN has traded between $5.83 and $22.17 - the current price is +13.4% off the 52-week low and -70.2% from the high. 17 analysts cover the stock with a Buy consensus and a mean 12-month target of $14.00 (range $8.00–$20.00), implying upside of +111.8%.

SOUN is a small-cap Technology stock (2.87B market cap) in a non-trending phase. Score: 23/100 (SELL). Sentiment: bullish (62/100). Price: $6.61 (near 52-week lows in $5.83–$22.17). At this capitalization tier, SELL signals combined with bullish news flow often indicate a period of institutional disinterest - the setup can stay neutral or deteriorate until a catalyst restores conviction.

For SOUN (small-cap, Technology, 2.87B market cap), the SELL technical reading (23/100) and bullish news sentiment (62/100) at $6.61 (near 52-week lows) describe a stock where the cost of patience is higher than in large-cap equivalents — thin float dynamics mean that time spent waiting for a catalyst can erode position value without the passive bid support that larger names receive. The $5.83–$22.17 annual range defines the structural stakes.