SoundHound AI (NASDAQ:SOUN) Shares Up 5.4% After Strong Earnings

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 5.4% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $9.10 and last traded at $8.98. Approximately 41,625,899 shares traded hands during mid-day trading, an increase of 55% from the average daily volume of 26,823,934 shares. The stock had previously closed at $8.52.

The company reported ($0.02) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.02). The firm had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.82%. SoundHound AI’s quarterly revenue was up 59.4% on a year-over-year basis. During the same period last year, the firm posted ($0.05) EPS.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Revenue beat and strong growth — Q4 revenue rose ~59% year‑over‑year to $55.06M, topping Street estimates and contributing to record annual revenue of $169M. This headline growth is the primary bullish driver for the stock. GlobeNewswire: Press Release
• Positive Sentiment: Strong cash position — company reported ending the quarter with about $248M in cash, supporting execution of product rollouts and R&D as it scales agentic AI for enterprise customers. Benzinga: Cash / Results
• Positive Sentiment: Product and expansion catalysts — company launched a “Sales Assist” retail voice agent and opened a new innovation hub in Bengaluru to accelerate agentic AI development, moves that expand TAM and execution capacity. Yahoo Finance: Bengaluru hub
• Neutral Sentiment: EPS and margins — reported EPS roughly in line with consensus (company reported ($0.02) EPS / in‑line with estimates), while GAAP and non‑GAAP losses persist; investors interpreted the EPS print as neither a clear beat nor a cure for ongoing profitability concerns. Zacks: Q4 recap
• Negative Sentiment: Analyst reaction: Piper Sandler cut its price target to $9 (from $11) and kept a “neutral” rating — the lower target and lack of an upgrade reduce near‑term upside expectations and likely weighed on the stock. Benzinga / TickerReport: Piper Sandler update
• Negative Sentiment: Profitability & guidance ambiguity — despite revenue beats, the company still reports negative margins and a FY‑2026 revenue guide range ($225M–$260M) that leaves room for investor concern vs. consensus; rising expenses and continued losses keep sentiment cautious. Company: Q4 presentation / press release

Wall Street Analyst Weigh In

A number of brokerages recently commented on SOUN. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research report on Thursday, January 8th. Piper Sandler reissued a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and a consensus target price of $15.79.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of the business’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the sale, the chief executive officer directly owned 2,198,287 shares in the company, valued at approximately $24,796,677.36. The trade was a 6.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Majid Emami sold 42,600 shares of the company’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president directly owned 565,586 shares in the company, valued at $6,379,810.08. This trade represents a 7.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 460,922 shares of company stock worth $5,199,073 over the last ninety days. 9.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently made changes to their positions in the stock. Sound Income Strategies LLC boosted its stake in shares of SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after acquiring an additional 575 shares during the last quarter. Investors Research Corp raised its stake in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the last quarter. EP Wealth Advisors LLC lifted its holdings in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its stake in shares of SoundHound AI by 2.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after purchasing an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC boosted its stake in shares of SoundHound AI by 7.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after purchasing an additional 858 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Stock Down 4.3%

The business’s fifty day moving average price is $9.58 and its 200 day moving average price is $12.93. The firm has a market capitalization of $3.61 billion, a PE ratio of -171.91 and a beta of 2.64.

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.