SoundHound AI Stock (SOUN) is getting renewed attention from analysts ahead of its Q1 earnings on May 7. Overall, the company has a Strong Buy rating from analysts with upside potential of almost 75%. Now, the focus is shifting to execution. The key question is whether SoundHound can deliver strong revenue growth and move closer to profitability—or if expectations have run too far ahead. The upcoming earnings report could be an important test of whether the recent optimism is justified.
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For context, SoundHound provides AI-powered solutions in voice recognition and natural language processing. Year to date, SOUN stock is down about 18%.
SoundHound Q1 Earnings Expectations
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 $42.8 million, up more than 45% year over year. In the previous quarter, the company delivered $55.1 million in revenue, a 59% increase.
In 2025, the company reported record annual revenue of $169 million, nearly double the previous year’s $84.7 million. However, despite this strong top-line growth, the stock has struggled to gain momentum. Investors remain cautious, as revenue growth alone hasn’t been enough to lift sentiment. Concerns continue around ongoing losses, intense competition in the AI sector, and whether SoundHound can sustain its rapid expansion over the long term while moving closer to profitability.
For full-year 2026, SoundHound is guiding for $225 million to $260 million in revenue, reflecting strong growth of 33% to 54%.
Analysts Reaffirm Buy Ratings on SOUN Post LivePerson Deal
Last week, SoundHound announced a definitive agreement to acquire LivePerson (LPSN). The deal brings together SoundHound’s voice AI platform with LivePerson’s digital customer engagement tools, which currently process over one billion customer messages each month.
Following the acquisition, D.A. Davidson analyst Gil Luria reiterated a Buy rating on SOUN and maintained a $14.00 price target. He noted that the deal marks SoundHound’s largest acquisition to date, highlighting a major step in the company’s expansion strategy. However, he also pointed out some integration risks that investors should keep an eye on. Despite these concerns, Luria added that the deal is accretive on a valuation basis, suggesting it could create long-term value if execution is handled well.
Meanwhile, Wedbush also maintained its Buy rating on SOUN and kept a $12 price target following the announcement. The firm said the acquisition is a strategic move that could better position SoundHound for a major shift in the AI market. A key highlight from Wedbush was the data advantage. The combination of SoundHound and LivePerson would give the company access to a massive volume of messaging data, creating what the firm described as “tens of billions of customer interactions annually.”
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 74.5% from the current level.
