Why Is SOUN Stock Surging Over 20% Overnight?

The LivePerson acquisition could lift combined 2027 revenue to at least $350 million-$400 million.

• SOUN's Q2 revenue jumped 45% to $61.9 million, beating the $52.39 million consensus.
• The voice firm narrowed its 2026 revenue outlook to $230 million-$260 million, with the midpoint above Wall Street’s estimate.
• Oasys helped secure an eight-figure commitment within 90 days, while its “AI Builds AI” feature cuts development from months to minutes.

Shares of SoundHound AI, Inc. (SOUN) surged 24% overnight heading into Thursday after the voice-AI company posted record revenue well above Wall Street’s expectations, delivered a narrower-than-expected loss and lifted the floor of its annual outlook.

SOUN stock fell 1% on Wednesday to close at $6.43 but remained up 5% for the week, putting it on track for its best weekly performance in more than two months. 

SOUN Q2 Review

SoundHound’s second-quarter (Q2) revenue jumped 45% from the previous year to $61.9 million, beating the $52.39 million consensus, while adjusted loss of $0.02 per share was narrower than the $0.05 loss analysts expected. “This was not only a record Q2, but our largest all-time quarter,” CEO Keyvan Mohajer said on the earnings call.

Meanwhile, the company narrowed its 2026 revenue forecast to $230 million-$260 million from $225 million-$260 million. The new $245 million midpoint stands above the $232.8 million consensus and excludes the pending LivePerson acquisition. 

GAAP gross margin improved six percentage points to 45%, while the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss narrowed 33% to $9.6 million. SoundHound ended Q2 with $203 million in cash and no debt and ultimately expects gross margin to exceed 70%.

Oasys Drives SOUN’s Record Quarter 

SoundHound credited much of the quarter’s outperformance to Oasys, its agentic AI platform launched in May. “With OASYS, we are winning in demos, we are winning in RFPs, we are winning in pilots,” Mohajer said.

One customer signed an eight-figure commitment less than 90 days after its first demonstration and plans to deploy the platform across clients in 20 countries, the company said. Oasys’ “AI Builds AI” feature can create agents using documents, APIs and previous call transcripts. SoundHound said work that once required large teams and months of development can now be completed in minutes. “Our pipeline has never been this big. Our win rate has never been this good,” Mohajer said.

SoundHound Enterprise AI Demand Grows

SoundHound expanded across healthcare, finance, automotive and restaurants. A top-20 healthcare provider quadrupled its spending, while Quálitas now handles over 100,000 monthly calls through its AI agents. “End customers are not resistant to automation. They’re only resistant to bad service,” CEO Keyvan Mohajer said.

The company also extended its Asian auto-deal streak to five quarters, doubled its Smart Answering business and achieved 100% restaurant renewals for key accounts. It plans to pilot in-car purchases in Q3 and bring voice commerce to U.S. televisions later in 2026.

Meanwhile, small-business customers now run entirely on SoundHound’s proprietary models, with a major healthcare client preparing to switch after improvements in cost, accuracy and latency. “Our customers don’t want an API, they want a partner,” Mohajer said.

SOUN’s LivePerson Deal Could Lift 2027 Revenue

SoundHound has secured all key regulatory approvals for its LivePerson acquisition and expects the deal to close before year-end. If completed in the second half of 2026, SoundHound expects combined 2027 revenue of at least $350 million- $400 million.

“We hope to do better than that,” Mohajer said. LivePerson would bring relationships with 25 Fortune 100 companies. SoundHound plans to upgrade those customers to Oasys and cross-sell voice, which is the feature LivePerson clients have requested most frequently.

How Do Retail Traders Feel About SOUN?

On Stocktwits, retail sentiment for SOUN was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said, “$SOUN damn good day to have been a bull. Damn good day. I held through the last earnings. I knew it was inevitable.”

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Another user said, “$SOUN Is the only stock screaming buy right now. Everything else on the market is unappealing at the moment”

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SOUN stock has declined 42% over the past year. 

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