SoundHound AI (SOUN) fell in after-hours trading after the voice and agentic AI company reported earnings for its first quarter of Fiscal 2026. Q1 revenue increased by 52% year-over-year to $44.2 million and beat analysts’ expectations of $42.56 million. The top-line growth was aided by strong demand for its voice and agentic AI technologies across automotive, IoT, enterprise, and consumer markets.
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“Excluding the impact of all acquisitions, revenue was up 88% in our core automotive and IoT AI vertical, highlighting incredible demand across all pillars of our business,” said Keyvan Mohajer, CEO and Co-founder of SoundHound AI.
In addition, the company reported a loss per share of $0.06, narrower than the analysts’ consensus estimate of a loss of $0.10 per share.
Also, SoundHound ended the quarter with strong liquidity position. At the end of Q1, the company had $216 million in cash and no debt.
Strong Adoption Across Industries
SoundHound continued to see robust customer momentum across nearly every industry it serves. In automotive and devices, the company secured a new seven-figure global vehicle deployment with a major Japanese OEM. Further, SOUN integrated its voice AI into Walmart’s (WMT) ONN TV brand.
In restaurants and retail, a major QSR reported higher revenue at AI‑enabled drive‑thru locations, while SoundHound notched strong cross-sell wins and new deployments across fitness, consumer goods, and service franchises totaling more than 1,000 locations.
The company renewed and expanded multi‑year agreements across utilities, telecom, healthcare, and technology, and added new channel partnerships with Manpower Group and a major U.S. infrastructure services provider.
Outlook
SoundHound reaffirmed its full‑year 2026 revenue outlook of $225-$260 million, reflecting confidence in continued demand for voice AI, agentic automation, and enterprise deployments.
With accelerating adoption, a major acquisition pending, and the launch of a self‑learning AI platform, SoundHound enters the rest of 2026 with significant momentum.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with five Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $14.00, suggesting a potential upside of 45.45% from the current level.
However, it’s worth noting that estimates will likely change following today’s earnings report.
