SoundHound AI (SOUN) Stock Surges 26% as Earnings Crush Wall Street Estimates

TLDR

• Q2 2026 revenue hit $61.9 million, up 45% year-over-year, beating the $52.4 million consensus estimate
• Adjusted loss per share came in at $0.02, far better than the $0.12 loss Wall Street expected
• Full-year 2026 revenue guidance raised to $230 million to $260 million
• New enterprise deals include multiple seven-figure contracts in healthcare and automotive, plus an eight-figure multi-year partnership across 20+ countries in Latin America
• Stock surged 26% in after-hours trading; all four Wall Street analysts covering SOUN carry Buy ratings with an average price target of $12.75

---

SoundHound AI (SOUN) stock jumped 26% in after-hours trading on Wednesday after the company posted its strongest quarterly results since going public.

SoundHound AI, Inc., SOUN

Q2 2026 revenue came in at $61.9 million, up 45% year-over-year and well above the analyst consensus of around $52.4 million. The stock was trading near $8.08 in pre-market, up from a 52-week low of $5.65.

The adjusted loss per share was $0.02. Wall Street had penciled in a loss of $0.12 to $0.13 per share. That gap between expectation and reality was a big part of what moved the stock.

SOUNDHOUND AI $SOUN Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $61.9M (Est. $52.4M) 🟢; +45% YoY
🔹 Adj. EPS: -$0.02 (Est. -$0.06) 🟢
🔹 Gross Margin: 45.1%

Raises FY26 Guide:
🔹 Revenue: $230M-$260M (Est. $232M) 🟢

Other Q2 Metrics:
🔹 Cash & Cash Equivalents: $203M; no debt… pic.twitter.com/TSZfRYdZGE

— Wall St Engine (@wallstengine) August 5, 2026

The company ended the quarter with $203 million in cash and no debt. That quieted some concerns investors had been carrying about the balance sheet.

Management raised the lower end of its full-year 2026 revenue guidance. The new range sits at $230 million to $260 million, with the midpoint of $245 million coming in above the Wall Street consensus of $232.8 million.

CEO Keyvan Mohajer pointed out that Q2 revenue is now ten times what it was when SoundHound went public in Q2 2022. He cited accelerating demand for voice and agentic AI as a key driver.

Enterprise Deals Driving Growth

The quarter was supported by broad enterprise adoption of the company’s OASYS agentic AI platform. That included multiple seven-figure deals in healthcare and automotive.

The company also closed an eight-figure multi-year channel partnership spanning more than 20 countries across Latin America. That kind of geographic reach matters for the revenue growth story.

Guidance may be updated again once the pending acquisition of LivePerson closes. Management left the door open for another upward revision if that integration goes smoothly.

A Tough Year Before Wednesday

The rally comes after a rough stretch. SOUN had fallen around 35% this year before Wednesday’s move.

Investor sentiment took a hit earlier in 2026 when Nvidia exited its investment in SoundHound. That had been a valuation support that disappeared quietly.

Concerns about the path to profitability also weighed on the stock. The LivePerson acquisition added uncertainty around dilution and integration risk before any financial upside becomes visible.

The broader market was not helping Wednesday either. The Nasdaq was modestly in the red, the S&P 500 and Dow were barely positive. This move was all SoundHound.

All four Wall Street analysts covering SOUN hold Buy ratings. Their average 12-month price target is $12.75, which implies around 98% upside from current levels.

SoundHound is scheduled to close the LivePerson acquisition, which could trigger another guidance update.