Brokers Issue Forecasts for SoundHound AI Q3 Earnings

Key Points

• Northland Securities raised its Q3 2026 EPS forecast for SoundHound AI to a loss of $0.11 per share from $0.12, while projecting a $0.38 loss for full-year 2026.
• SoundHound AI’s latest results beat expectations, with EPS of a $0.02 loss versus the consensus $0.13 loss and revenue of $61.9 million versus $52.38 million; revenue increased 45% year over year.
• Analyst sentiment remains mixed but leans positive: the stock has a “Moderate Buy” consensus rating and an average $13.60 price target, despite continued losses, negative margins, high volatility and lowered targets from Piper Sandler and DA Davidson.

SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) - Analysts at Northland Securities upped their Q3 2026 EPS estimates for SoundHound AI in a research note issued on Thursday, August 6th. Northland Securities analyst M. Latimore now anticipates that the company will post earnings per share of ($0.11) for the quarter, up from their prior forecast of ($0.12). The consensus estimate for SoundHound AI's current full-year earnings is ($0.36) per share. Northland Securities also issued estimates for SoundHound AI's Q4 2026 earnings at ($0.11) EPS, FY2026 earnings at ($0.38) EPS, Q1 2027 earnings at ($0.10) EPS, Q2 2027 earnings at ($0.09) EPS, Q3 2027 earnings at ($0.08) EPS, Q4 2027 earnings at ($0.06) EPS and FY2027 earnings at ($0.32) EPS.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts' consensus estimates of ($0.13) by $0.11. The business had revenue of $61.90 million for the quarter, compared to analysts' expectations of $52.38 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The business's quarterly revenue was up 45.0% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.19) EPS.

Other equities research analysts have also issued research reports about the stock. Piper Sandler dropped their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson reduced their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $13.60.

SoundHound AI Stock Performance

SOUN stock opened at $7.40 on Thursday. The stock's fifty day moving average is $6.72 and its two-hundred day moving average is $7.51. The stock has a market capitalization of $3.20 billion, a price-to-earnings ratio of -19.47 and a beta of 2.64. SoundHound AI has a 1 year low of $5.65 and a 1 year high of $22.17.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently made changes to their positions in the business. Danske Bank A S acquired a new stake in SoundHound AI in the 3rd quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its holdings in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after purchasing an additional 1,544 shares during the period. SHP Wealth Management acquired a new stake in SoundHound AI in the 4th quarter worth $27,000. Finally, Parallel Advisors LLC increased its holdings in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares during the period. 19.28% of the stock is currently owned by institutional investors.

Insider Activity at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares of the company's stock, valued at approximately $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 268,022 shares of company stock worth $1,999,444. Company insiders own 8.84% of the company's stock.

More SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: LivePerson merger approval gains support: Institutional Shareholder Services (ISS) recommended that LivePerson shareholders vote in favor of SoundHound AI’s proposed acquisition, joining Glass Lewis and LivePerson’s board. The shareholder vote is scheduled for August 20, which could reduce a key transaction risk and expand SoundHound’s conversational-AI capabilities if approved. ISS recommends approval of SoundHound AI transaction
• Positive Sentiment: OASYS could support enterprise growth: SoundHound’s OASYS platform is designed to help businesses build voice-enabled AI agents. Reports say it has helped shorten sales cycles, move prospects from demonstrations to contracts more quickly, and convert pilot programs into larger implementations. The company has also raised its 2026 revenue outlook, while management and analysts see additional growth potential in 2027. OASYS enterprise growth analysis
• Positive Sentiment: Analyst target implies substantial upside: The consensus price target indicates approximately 56.1% potential upside for SOUN. However, the report cautions that price targets alone have limited predictive value; improving earnings-estimate revisions would provide a more meaningful bullish signal. SoundHound AI analyst price target
• Neutral Sentiment: Reported short-interest data showed zero shares sold short, but the figures appear inconsistent and provide no meaningful evidence of short-squeeze potential.
• Negative Sentiment: Despite improving revenue and growth prospects, SoundHound AI continues to report losses and negative margins. The pending LivePerson acquisition also carries execution and integration risk, while the stock’s high volatility makes the bullish forecasts speculative.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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