SoundHound AI (SOUN) Crushes Q4 Estimates, but Piper Sandler Flags Risks

FomoAnxiety · 2026-02-27T16:21:00+00:00

SoundHound AI shares fell over 1% despite strong Q4 results, with revenue up 59% year-over-year. Analyst James Fish lowered the price target from $11 to $9 while noting concerns about profitability and growth strategies. The stock maintains a Strong Buy consensus rating.

FomoAnxiety

2026-02-27 16:21:00

Abstract generation in progress

Shares of SoundHound AI SOUN -2.78% ▼ fell over 1% in early trading on Friday after a pre-market rise, despite the company reporting strong Q4 results for 2025. Following the report, four-star-rated analyst James Fish of Piper Sandler lowered his price target on SOUN from $11 to $9 while maintaining a Hold rating.

Claim 50% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

For context, SoundHound AI focuses on voice recognition and natural language processing, providing AI-powered solutions for multiple industries. The company’s Q4 revenue came in at $55.06 million, up 59% year over year and ahead of Wall Street’s consensus estimate of $54 million. Earnings per share came in at -$0.02, beating the expected loss of -$0.10 per share by a wide margin.

Why Piper Sandler Cut Its Price Target on SOUN

According to Fish, SoundHound’s Q4 was somewhat mixed. He stated that while revenue largely came in line with expectations, profitability fell short of estimates.

Additionally, he stated that the company’s guidance for the next period was higher than anticipated, but flagged concerns about how SoundHound will achieve that growth. Specifically, Fish noted that the company may need to pursue aggressive initiatives or mergers and acquisitions to meet its targets, given the current pace of the business.

Earlier in January 2026, Fish lowered his price target on SOUN from $15 to $11, citing several concerns. Fish was worried about the company’s ability to effectively execute its growth plans. These include managing operations, scaling the business, and hitting financial targets. He also pointed out challenges for SoundHound in gaining widespread adoption of its products.

Is SOUN a Good Stock to Buy?

According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with five Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $16.20, suggesting a potential upside of 24% from the current level.

These ratings and price targets will likely change as analysts update their coverage following yesterday’s earnings report.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.