Key Takeaways
- Q1 2026 earnings release scheduled for May 7, with shares currently around $9.27
- Implied volatility from options positions suggests approximately 15.9% movement, establishing a probable range between $7.80 and $10.74
- Street consensus points to $42.56 million in quarterly revenue alongside -$0.10 earnings per share
- Call volume significantly outpaces put activity, indicating traders favor bullish scenarios
- Analyst community maintains Strong Buy rating with mean price target reaching $14.63
SoundHound AI (SOUN) releases its fiscal Q1 2026 results on May 7, with derivatives markets already positioning for substantial volatility.
At the current price point of $9.27, the at-the-money straddle positioned at the $9.50 strike carries a premium of $1.47. This pricing translates to an anticipated earnings reaction of approximately 15.9%, establishing boundaries from $7.80 on the downside to $10.74 on the upside.
Consistent pricing appears across adjacent strike levels. The $9.00 straddle commands $1.40 in premium, while the $10.00 straddle sits at $1.61 — each reinforcing expectations for a mid-teens percentage fluctuation in either direction.
Trading flow demonstrates clear directional bias. The $9.50 strike recorded 2,538 call contracts against merely 201 put contracts. Outstanding positions at this level show 6,812 calls compared to 2,120 puts.
The $10 strike reinforces this pattern. Volume reached 4,887 calls with total open interest of 12,733 contracts — revealing substantial bullish sentiment among options participants.
Revenue and Earnings Projections
Analyst forecasts anticipate Q1 revenue reaching $42.56 million while projecting a loss of $0.10 per share. Full-year 2026 projections stand at $232.78 million in revenue with -$0.33 EPS.
Fiscal 2026 revenue estimates have experienced modest upward revision recently, climbing from $230.17 million to $232.78 million throughout the past 90 days. Meanwhile, 2027 projections have experienced minor downward adjustment, declining from $281.76 million to $279.79 million.
Earnings projections for 2027 have also shifted lower, moving from -$0.26 to -$0.28 per share during this timeframe.
Previous Quarter Performance Review
During Q4 2025, SOUN delivered revenue of $55.06 million, surpassing the $53.99 million consensus figure by roughly 2%. Earnings per share reached $0.10, dramatically exceeding the anticipated -$0.09 — representing a beat exceeding 200%.
Following those impressive results, shares declined 4.23% in the subsequent trading session. This outcome underscores how surpassing forecasts can still result in negative price action.
Current market expectations have established elevated benchmarks. Falling short — or delivering a modest beat — could potentially drive SOUN toward the upper-$7 territory suggested by derivatives pricing.
Nine Wall Street analysts maintain coverage on the company, with an average brokerage recommendation of 2.0, corresponding to an “Outperform” designation.
Eight analysts have established one-year price objectives for SOUN, averaging $14.63. The highest target stands at $20.00 while the lowest sits at $9.00.
GuruFocus establishes the GF Value at $14.59 for the upcoming 12-month period, suggesting roughly 60% appreciation potential from present levels.
Among recent analyst actions over the past three months, five maintain Buy ratings, one holds a Hold position, and none recommend selling.
