SoundHound AI Stock Drops Nearly 60% in 2026, Yet Wall Street Forecasts Significant Rebound

SoundHound AI shares have faced heavy downward pressure in the stock market, shedding nearly 60% of their value amid growing corporate net losses. Despite the steep pullback, Wall Street analysts maintain a bullish outlook on the conversational voice artificial intelligence provider, pointing to a median 12-month price target of $10 that signals a potential 156% increase over the coming year. Out of seven analysts covering the firm, six rate the stock as a buy, while the lowest price target sits at $5, implying a 28% gain.

The sharp decline has lowered SoundHound's price-to-sales ratio to 7.7, a dramatic drop from a sales multiple of 26 at the close of 2025. Financial figures from the company's third-quarter report showed revenue jumping 48.5% year-over-year to $62.4 million. However, margins narrowed due to product development expenses and acquisition-related costs, pushing the non-GAAP net loss per share up to $0.05 from $0.03 during the same period last year.

Looking ahead, management anticipates stronger financial metrics fueled by integration synergies following the LivePerson acquisition. SoundHound expects annualized cost savings of $120 million by 2027, with $80 million in cost-cutting actions slated to begin in 2026. The firm also guided for full-year 2026 revenue to reach $255 million at the midpoint, representing a 51% top-line increase, and projects 2027 revenue to grow another 47% to $375 million.

What to watch next: Monitor the execution of cost-saving initiatives and whether the company hits its target for sustained adjusted EBITDA positivity by the second half of 2027.