SoundHound AI SOUN reported strong first-quarter results in its automotive and IoT AI business, reflecting continued traction across automotive customers and connected-device integrations.
In the first quarter of 2026, SoundHound stated that its automotive and IoT AI business grew 88% year over year, excluding the impact of acquisitions. The figure is notable given the company’s active M&A backdrop, making organic growth an important indicator of core voice AI traction. Overall revenues increased 52% year over year to $44.2 million, with growth led by financial services and automotive.
Automotive growth was supported by new and expanded customer commitments. During the quarter, SoundHound signed a seven-figure commitment with a prominent Japanese auto manufacturer to deploy its voice assistant globally. The company also expanded into South America with a multinational OEM, indicating a broader geographic reach in the automotive market.
SoundHound’s IoT activity adds another device-based growth channel. The company signed an agreement to integrate its Voice AI into Walmart’s ONN TV brand and noted progress in voice commerce as multiple TV and well-known automotive brands integrate its solution. These agreements broaden the use cases for SOUN’s voice AI across connected-device platforms.
The monetization profile could also improve as automakers upgrade from pre-GenAI voice systems to GenAI and live GenAI capabilities. Higher-priced upgrades create an opportunity for SOUN to increase revenue per unit, while live GenAI adds a renewal component that could support a more recurring revenue profile over time.
SOUN’s organic growth is supported by expanding OEM relationships, higher-value GenAI upgrades, live GenAI renewal opportunities and a broader connected-device footprint. These drivers likely give the automotive and IoT business a stronger base to remain a meaningful contributor to organic growth in the upcoming periods.
SOUN’s Price Performance, Valuation & Estimates
SoundHound’s shares have lost 42.5% in the past year compared with the industry’s fall of 34.8%. At the same time frame, other industry players, including C3.ai, Inc. AI and BigBear.ai Holdings, Inc. BBAI, have declined 64.6% and 54.6%, respectively.
SOUN Stock’s One-Year Price Performance
SOUN stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 11.25, slightly below the industry average of 11.53. Then again, other industry players, such as C3.ai and BigBear.ai, have P/S ratios of 6.26 and 10.95, respectively.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened from 13 cents to 18 cents in the past 60 days.
EPS Trend of SOUN Stock
The company is likely to report dismal earnings, with projections indicating a 38.5% year over year fall in 2026. Conversely, industry players like BigBear.ai are likely to witness growth of 69.5% year over year in 2026 earnings. C3.ai is likely to project a rise of 39.3% in 2027 earnings.
SOUN’s Zank Rank
SOUN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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