AudioCodes Q1 2026 Results Highlight Shift to AI-Driven, Recurring Revenue Model

Audiocodes ( (AUDC) ) has provided an announcement.

On May 5, 2026, AudioCodes reported its financial results for the first quarter ended March 31, 2026, posting a 2.9% year-over-year revenue increase to $62.1 million, driven in part by 4.3% growth in services revenue to $34.0 million. GAAP net income fell to $2.0 million, or $0.07 per diluted share, from $4.0 million a year earlier, while non-GAAP net income declined to $3.8 million, or $0.14 per diluted share, as the company continued to invest in its AI-driven transformation.

The quarter underscored a strategic pivot toward AI-powered, hybrid cloud software and services, with the Live managed services suite and Conversational AI business together lifting annual recurring revenue to $80 million, nearly 20% above the prior-year period. Conversational AI revenue grew by more than 50% year-over-year, supported by record results from the Voca CIC Teams-certified contact center solution and strong demand for VAIC and Live Hub, while Meeting Insights, including its on-premises version for edge computing and data sovereignty, also gained traction.

Operationally, AudioCodes generated $12.8 million in cash from operating activities in the quarter, but its total cash, deposits, marketable securities and long-term financial investments declined to $68.1 million from $75.7 million at year-end 2025. The reduction reflects $13.7 million spent repurchasing 1,740,329 ordinary shares and the payment of a $0.20-per-share cash dividend totaling about $5.3 million, leaving $1.6 million remaining under an Israeli court-approved $25 million buyback and dividend capacity as of March 31, 2026.

Management highlighted that investments in Live services and Voice AI, alongside disciplined budgeting, are supporting positive operating cash flow and are expected to underpin healthy top-line growth through the rest of 2026. The combination of rising recurring revenue, strong growth in conversational AI offerings and continued capital returns via buybacks and dividends suggests AudioCodes is seeking to balance shareholder distributions with long-term strategic repositioning in the enterprise voice and AI markets.

The most recent analyst rating on (AUDC) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Audiocodes stock, see the AUDC Stock Forecast page.

Spark’s Take on AUDC Stock

According to Spark, TipRanks’ AI Analyst, AUDC is a Neutral.

The score is primarily held back by weakened profitability, increased leverage, and more volatile free cash flow despite a revenue rebound. Technicals are supportive but look overbought, while valuation appears demanding (P/E 31.5). Earnings-call guidance shows promising Voice AI/ARR momentum and shareholder returns, but near-term margin pressure and execution risks remain meaningful.

To see Spark’s full report on AUDC stock, click here.

More about Audiocodes

AudioCodes Ltd., listed on Nasdaq and the Tel Aviv Stock Exchange under the ticker AUDC, is a global provider of enterprise voice and VoiceAI business solutions. Its portfolio covers voice connectivity, unified communications and contact center integration, and next-generation voice AI applications for collaboration, workflow automation and real-time insights, serving customers worldwide including dozens of Fortune 100 companies.

Leveraging more than three decades of experience in voice technologies, the Israel-based company focuses on helping organizations turn human and AI-driven conversations into strategic data assets. AudioCodes positions itself at the intersection of cloud communications, UCaaS, customer experience platforms and conversational AI, targeting enterprises that are modernizing contact centers, deploying virtual agents and adopting hybrid cloud architectures.

Average Trading Volume: 130,643

Technical Sentiment Signal: Buy

Current Market Cap: $271.8M

For detailed information about AUDC stock, go to TipRanks’ Stock Analysis page.