SoundHound AI (SOUN) stock has been rising ahead of its Q1 earnings on May 7, as investors continue to back its AI growth story. The stock has surged more than 40% over the past month, including a sharp 20% gain on Friday. Now, attention is turning to execution. Investors want to see if the company can keep its strong revenue momentum and make real progress toward profitability. Despite the risks, analysts remain optimistic, with a Strong Buy consensus and more than 45% upside potential from current levels.
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For context, SoundHound AI provides AI-powered solutions in voice recognition and natural language processing. The recent rally has been partly driven by strong results and upbeat guidance from software company Twilio (TWLO), which highlighted robust demand for AI voice tools.
SoundHound’s 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. For full-year 2026, SoundHound is guiding for $225 million to $260 million in revenue, reflecting strong growth of 33% to 54%.
Should You Buy SOUN Stock Before May 7?
SOUN stock looks attractive heading into Q1 earnings, but whether to buy now or wait depends on your risk tolerance.
The bullish case is clear. SoundHound AI offers a compelling growth story, with revenue expected to rise around 45% and full-year guidance pointing to continued expansion. At the same time, losses are narrowing as the company moves toward profitability. It also maintains a strong balance sheet with no major debt, reducing financial risk. Supporting the bullish case, analysts continue to rate the stock a Strong Buy, with significant upside potential from current levels.
However, valuation is a key risk. SOUN trades at a rich price-to-sales ratio of 22.94, far above the sector average of 3.64. This means that expectations are high and there is little room for disappointment. Investors will closely watch profitability progress, guidance, and the LivePerson (LPSN) integration, as any slowdown could trigger a sharp downside.
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 46.4% from the current level.
