SoundHound AI (SOUN) stock is facing fresh pressure after multiple Wall Street analysts lowered their price targets following Q1 earnings. The voice AI company posted strong revenue growth, but concerns around profitability and integration risks tied to recent acquisitions appear to be weighing on investor sentiment. Even though analysts largely maintained their Buy ratings, the lowered targets signal that expectations for near-term upside may be cooling after SOUN’s massive rally over the past year. Since reporting earnings, SOUN stock has fallen more than 12%.
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For context, SoundHound AI focuses on voice recognition and natural language processing, providing AI-powered solutions for multiple industries.
Analysts Cut Price Targets on SOUN
Four-star-rated analyst Gil Luria at DA Davidson lowered his price target on SOUN from $14 to $12. He noted that SoundHound started 2026 with revenue above expectations, driven by broad-based demand across multiple industries. However, Luria also pointed to earnings pressure and execution risks that may limit near-term upside despite the company’s strong growth trajectory.
Notably, SoundHound reported Q1 revenue of $44.2 million, up 52% year-over-year and ahead of Wall Street expectations. In addition, SoundHound reaffirmed its full-year 2026 revenue guidance of $225 million to $260 million, which implies annual growth of roughly 33% to 54%. However, the company posted a Q1 loss of $0.06 per share, highlighting ongoing profitability challenges.
Likewise, Northland’s top-rated analyst Michael Latimore also trimmed his price target from $14 to $12, now predicting an upside of over 35%. According to Latimore, SoundHound delivered slightly better-than-expected Q1 revenue driven by solid adoption of its AI platform. Still, weaker profitability tied to growth and tech investments led to lower adjusted EBITDA forecasts.
Is SOUN a Good Stock to Buy?
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 $13.33, suggesting a potential upside of 58.5% from the current level.
