TLDR
- SOUN reports Q1 2026 earnings on May 7, with the stock trading around $9.27
- Options traders are pricing in a ~15.9% move, putting the expected range at $7.80–$10.74
- Q1 revenue consensus estimate is $42.56 million, with EPS expected at -$0.10
- Call activity is heavier than puts, suggesting traders are leaning toward upside
- Wall Street analysts have a Strong Buy consensus with an average price target of ~$14.63
SoundHound AI (SOUN) is set to report its Q1 2026 earnings today, May 7, and options traders are already bracing for a big move.
With SOUN trading around $9.27, the at-the-money straddle at the $9.50 strike is priced at $1.47. That implies a post-earnings move of roughly 15.9%, giving the stock an expected range of $7.80 to $10.74.
The setup holds across nearby strikes too. The $9.00 straddle is priced at $1.40, and the $10.00 straddle at $1.61 — both pointing to a mid-teens percentage swing either way.
Options activity is skewing toward the upside. At the $9.50 strike, 2,538 calls traded versus just 201 puts. Open interest at that level sits at 6,812 calls versus 2,120 puts.
The $10 strike tells a similar story. It showed 4,887 calls traded and 12,733 contracts in open interest — a clear tilt toward bullish positioning.
What Analysts Are Expecting
The Street is looking for Q1 revenue of $42.56 million and a loss of $0.10 per share. For the full year 2026, the consensus sits at $232.78 million in revenue and -$0.33 EPS.
Full-year 2026 revenue estimates have actually crept higher recently, up from $230.17 million to $232.78 million over the past 90 days. However, 2027 estimates have dipped slightly, with revenue trimmed from $281.76 million to $279.79 million.
Earnings estimates for 2027 have also nudged lower, moving from -$0.26 to -$0.28 per share in the same period.
How SOUN Performed Last Quarter
In Q4 2025, SOUN reported revenue of $55.06 million, beating the $53.99 million consensus by about 2%. EPS came in at $0.10, crushing the expected -$0.09 — a beat of over 200%.
Despite that strong result, the stock fell 4.23% the day after earnings. That’s a useful reminder that beating estimates doesn’t always translate to a pop.
This time around, expectations are already set at a high bar. A miss — or even an underwhelming beat — could push SOUN back toward the high-$7 range implied by the options market.
Nine analysts currently cover the stock, with an average brokerage recommendation of 2.0, which maps to an “Outperform” rating.
Eight analysts have a one-year price target on SOUN, with an average of $14.63. The high sits at $20.00 and the low at $9.00.
GuruFocus also pegs the GF Value at $14.59 for the next 12 months, implying around 60% upside from current levels.
Five analysts rate SOUN a Buy, one a Hold, and none a Sell over the past three months.
