Voice and agentic AI specialist SoundHound AI (NASDAQ:SOUN) just delivered its sixth straight earnings beat, and our model has digested the results. Here is where the 24/7 Wall St. price target lands.
Our price target for SoundHound is $17.91, implying 85.98% upside from the current $9.63 share price. Our recommendation is buy with a moderate confidence level of 50%, reflecting the wide range of credible outcomes for a high-beta AI growth name still operating at a loss.
24/7 Wall St. Price Target Summary
| Metric | Value |
|---|---|
| Current Price | $9.63 |
| 24/7 Wall St. Price Target | $17.91 |
| Upside | 85.98% |
| Recommendation | BUY |
| Confidence Level | 50% |
A Volatile Run Into Record Q1 Numbers
SoundHound has whipsawed traders. Shares climbed 20.98% in the past week and 43.73% over the past month, yet the stock is still down 3.41% year to date and sits 34% off the 52-week high of $22.17 with a 52-week low of $5.83.
The catalyst is a clean Q1 FY2026 print. Revenue hit $44.2 million, up 52% YoY, with the core automotive and IoT vertical growing 88% organically. EPS came in at -$0.06, the sixth consecutive consensus beat.
Management reaffirmed FY2026 revenue guidance of $225 million to $260 million and projected at minimum $350 million to $400 million in FY2027 once the LivePerson acquisition closes in the second half of 2026.
The Case for $22 and Higher
Bulls have a real script. The LivePerson (NASDAQ:LPSN) deal targets a $500 million combined revenue opportunity serving 25 of the Fortune 100, while OASYS, the new self-learning agentic AI platform, opens enterprise budgets.
Recent wins include a 7-figure Japanese OEM commitment, integration across Walmart (NYSE:WMT | WMT Price Prediction) Walmart’s ONN TV brand, and expansion with one of the world’s largest banks across 100 global markets. H.C. Wainwright carries a $20 price target and Cantor Fitzgerald is at $15. Our bull case lands at $22.77.
What Could Go Wrong
SoundHound burned $26.3 million in operating cash during Q1, and GAAP gross margin compressed 5.4 percentage points to 31.1% on vendor true-up costs. A P/S ratio of 21.4x against an industry average of 3.4x leaves no margin for execution slips.
Bulls would counter that the gross margin hit was a one-time vendor adjustment, that non-GAAP gross margin was 60.5% in Q4 2025, and that $215.6 million in cash funds the runway. Still, our bear case sits at $14.11 if LivePerson integration slips or AI multiples compress.
The Bottom Line on SoundHound
My price target of $17.91 implies meaningful upside, and the recommendation is buy at 50% confidence. The factor that tips the scale is the FY2027 revenue ramp toward $350 million to $400 million.
The bull thesis strengthens if LivePerson closes on schedule and OASYS lands at least one new Fortune 100 logo by year end. The thesis weakens if cash burn widens beyond Q1 levels or FY2026 guidance gets trimmed.
SoundHound Price Prediction 2026-2030
Looking further out, here is where our model projects SoundHound could trade, assuming current growth and margin trajectory hold.
| Year | 24/7 Wall St. Price Target |
|---|---|
| 2026 | $17.91 |
| 2030 | $52.21 |
These projections assume SoundHound executes on the LivePerson integration and sustains agentic AI traction. Significant upside or downside could result from enterprise AI multiple shifts or a slowdown in voice AI adoption.
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