After falling 5.3% in July, SoundHound AI (NASDAQ: SOUN) shares rallied in August following the artificial intelligence company’s better‑than‑expected second‑quarter 2026 earnings.
Data from S&P Global Market Intelligence shows the stock climbed 16.8% for the month.
SoundHound AI Posts $61.9 Million Q2 2026 Revenue, Beating Forecasts
Revenue for the quarter reached $61.9 million, surpassing the $52.4 million consensus estimate and reflecting a 45% increase year over year. On the bottom line, the company reported an adjusted loss per share of $0.02, better than the $0.05 loss analysts had expected.
Although still posting a net loss, SoundHound AI made headway on profitability, expanding its gross profit margin to 45.1% from 39% a year earlier.
In the earnings release, interim CFO and co‑founder James Hom highlighted the early success of OASYS, the company’s newly launched AI platform that lets customers create conversational agents to handle transactions, tasks, and workflows for both consumers and employees. “We are excited by the strong interest we are already seeing with OASYS, which is a testament to the category‑defining technology we continue to deliver to the market. Our investment in innovation, combined with our cost discipline, is key as we drive our business toward achieving profitable growth,” he said.
Investors also cheered updated 2026 guidance, projecting revenue of $230 million to $260 million. Hitting the midpoint would imply roughly 45% year‑over‑year sales growth.
Despite the market’s enthusiastic reaction, some analysts adopted a cautious tone, trimming price targets for the stock. Piper Sandler’s James Fish lowered his target to $7 from $8 while keeping a neutral rating, and DA Davidson’s Gil Luria cut his target to $10 from $12.
SoundHound AI Shares Trade at a Discount
The stock has given back 5.9% so far in September, pulling back part of its August gain. At 13.9 times sales, the shares trade at a discount to their five‑year average price‑to‑sales multiple of 17.2, suggesting an attractive entry point for investors.