SoundHound AI (SOUN) and BigBear.ai (BBAI) are two small-cap, pure-play AI companies preparing to report earnings this week. SoundHound is set to announce its Q1 2026 results on May 7, while BigBear.ai will report on May 5. Using TipRanks’ Stock Comparison tool, we compared SOUN and BBAI across key metrics. Analysts have a Strong Buy rating on SOUN, while BBAI has a Moderate rating. SOUN stock has a price target of $14.00, implying an upside of 46.4%, while BBAI’s stock price target of $5.33 implies an upside of 28.8%.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
For context, SoundHound AI develops voice and conversational AI technology used in cars, restaurants, and other businesses. BigBear.ai provides data-based intelligence solutions, mainly serving government agencies and national security clients. So far this year, SOUN stock has declined by 4%, while BBAI is down by over 20%.
Let’s take a look at these stocks in detail.
SOUN vs. BBAI: Valuation Risks
SoundHound AI trades at a premium valuation, reflecting strong growth expectations but leaving limited room for error. The stock has a trailing 12-month price-to-sales ratio of around 23, significantly higher than the sector average of 3.64. Any slowdown in growth or rising competitive pressure could weigh on the stock.
In comparison, BigBear.ai appears more reasonably valued, with a price-to-sales ratio of 11.63. However, that discount comes with trade-offs. The company faces slower growth and ongoing financial challenges, while its reliance on government contracts can lead to uneven revenue visibility.
What to Expect from SOUN’s Q1 Results
For Q1, analysts expect SoundHound to report a loss of $0.10 per share, improving from a loss of $0.31 per share a year ago. Revenue is projected at about $42.8 million, up more than 45% year over year. For full-year 2026, SoundHound has guided for revenue between $225 million and $260 million, representing strong annual growth of 33% to 54%.
On Wall Street, four-star-rated analyst Scott Buck of H.C. Wainwright holds the Street-high price target of $20 on SOUN, implying more than 100% upside from current levels. Buck noted that SoundHound aims to reach adjusted EBITDA break-even by late 2026 while maintaining its growth focus. While that strategy may weigh on short-term margins, he believes the company remains financially strong with solid revenue growth expected through 2026.
What Investors Should Expect from BBAI’s Q1 Earnings
BigBear.ai shares are up roughly 18% over the past month, lifted by fresh interest in defense AI as global tensions rise. Even so, investors continue to worry about sluggish revenue growth and ongoing cash burn. Heading into Q1 earnings, Wall Street remains cautiously optimistic, expecting the company to benefit from improving AI-driven demand and strategic moves like the Ask Sage acquisition.
For Q1, Wall Street analysts expect the company to post a loss of $0.08 per share, improving from a $0.25 loss a year ago. However, revenue is projected to decline more than 3% year over year to about $33.6 million.
Conclusion
SOUN looks like the stronger pick for most investors. It’s still unprofitable, but it’s delivering faster revenue growth and improving its path toward profitability.
On the other hand, BBAI is more speculative. While it could benefit from long-term government AI demand, its uneven revenue, thin margins, and reliance on government contracts make it a higher-risk bet.