SoundHound AI (SOUN) is set to report its first-quarter results on Thursday, May 7, after the market closes. Heading into the results, Wall Street is strongly bullish on SOUN stock. Meanwhile, the options market is also bracing for a strong reaction. According to TipRanks’ Options Tool, options traders expect an 18.06% move in either direction in SOUN stock in reaction to Q1 2026 earnings. This implied move is much higher than SoundHound’s average post-earnings move (in absolute terms) of 3.74% over the past four quarters.
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For context, SoundHound AI provides AI-powered solutions in voice recognition and natural language processing. SOUN stock has gained over 40% in the past month, but remains down by 5% year-to-date.
What to Expect from SoundHound’s Q1 Results
Analysts expect SoundHound to post a loss per share of $0.10 in Q1, compared to a loss of $0.31 a year ago. Meanwhile, analysts expect revenue of about $42.56 million, up more than 45% year over year. For full-year 2026, SoundHound is guiding for $225 million to $260 million in revenue, reflecting strong growth of 33% to 54%.
Overall, investors remain cautious, as revenue growth alone isn’t enough to lift sentiment. Ongoing losses, intense AI competition, and long-term sustainability remain key concerns. With a rich valuation, there’s little room for disappointment, putting the spotlight on profitability and guidance. Notably, SOUN trades at a price-to-sales ratio of 22.94 versus the sector’s 3.64.
The focus is now shifting to execution. The key question is whether SOUN can sustain strong growth while moving closer to profitability—or if expectations have run ahead of reality, making this earnings report a crucial test.
AI Analyst Stays Neutral on SOUN Stock
SOUN stock carries a Neutral rating from TipRanks’ A.I. Stock Analysis tool, with a score of 57/100 based on the OpenAI model.
The rating reflects a mixed picture—strong revenue growth, improving balance sheet, and solid deal momentum are positives. However, these are offset by negative free cash flow, ongoing losses, and a weak earnings-based valuation. At the same time, technical indicators point to short-term strength but potential overbought conditions.
For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential.
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 $14.0, suggesting a potential upside of 48% from the current level.
