We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SoundHound signed a new seven-figure pact with a Japanese automaker to deploy its voice assistant globally.
SoundHound's OASYS and Voice Commerce let drivers order food, reserve parking and transact by voice.
SoundHound AI, Inc.’s (SOUN - Free Report) automotive and IoT business showed strong organic momentum in the first quarter of 2026, with revenues surging 88% year over year, excluding acquisitions. This growth stood out against the company’s overall 52% revenue increase to $44.2 million, suggesting that SoundHound’s core voice AI business is gaining traction beyond acquisition-driven expansion.
The momentum was supported by several high-profile automotive wins. During the quarter, SoundHound signed a new seven-figure agreement with a prominent Japanese automaker to deploy its voice assistant globally across vehicles. The company also expanded its geographical presence in Latin America through an expansion agreement with a multinational original equipment manufacturer (OEM) in South America. Management additionally noted that multiple automotive brands are integrating SOUN’s Voice Commerce platform, which allows drivers to place food orders, reserve parking and complete transactions directly from vehicles through voice commands.
The deployment of SoundHound's new Orchestrated Agent System, OASYS, could become a differentiator in the competitive auto AI market. The platform enables enterprises to build and deploy AI agents across multiple channels, including cars, TVs, phones and kiosks, while continuously improving performance through real-world interactions. Management stated that automakers can use the system for commerce-driven applications such as ordering coffee, food pickup and reservations while driving, potentially creating recurring monetization opportunities for both SoundHound and vehicle manufacturers.
Overall, the 88% organic growth suggests SoundHound is building credibility in automotive AI, but whether SOUN becomes a true auto AI leader will depend on sustained OEM wins, broader rollout of GenAI upgrades and successful monetization of in-car voice commerce.
Competitive Landscape: Microsoft and C3.ai
Among enterprise AI competitors, Microsoft (MSFT - Free Report) and C3.ai (AI - Free Report) stand out as key rivals to SoundHound AI as the race for conversational, agentic and enterprise-grade AI platforms accelerates.
Microsoft has rapidly scaled its AI ecosystem through Azure AI, Copilot and Foundry Agent Services, positioning itself as one of the dominant infrastructure and enterprise AI providers globally. In third-quarter fiscal 2026, Microsoft’s AI business surpassed a $37 billion annual revenue run rate, up 123% year over year. The company is increasingly focused on “agentic systems” capable of orchestrating workflows, reasoning across enterprise data and executing multistep tasks, areas that overlap with SOUN’s OASYS platform and voice commerce ambitions.
While C3.ai primarily targets enterprise operations and industrial AI use cases rather than automotive voice assistants, its growing focus on generative AI agents and enterprise automation increasingly overlaps with SoundHound’s broader agentic AI strategy. Both companies are attempting to monetize AI through recurring software and usage-based models, though SoundHound differentiates itself through its proprietary speech AI technology, automotive integrations and voice-commerce ecosystem tailored specifically for connected vehicles and IoT devices.
SOUN’s Price Performance, Valuation & Estimates
SoundHound shares have declined 18.4% in the year-to-date period, outperforming the Zacks Computers - IT Services industry but underperforming the broader Computer and Technology sector and the S&P 500 index.
SOUN YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 14.1, below the industry’s average of 12.15.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 18 cents from 9 cents. The revised estimates for 2026 imply a year-over-year decline of 38.5%.
View the Zacks #1 Rank List
Image: Bigstock
SoundHound's Automotive & IoT Business Jump 88%: Is Momentum Building?
Key Takeaways
SoundHound AI, Inc.’s (SOUN - Free Report) automotive and IoT business showed strong organic momentum in the first quarter of 2026, with revenues surging 88% year over year, excluding acquisitions. This growth stood out against the company’s overall 52% revenue increase to $44.2 million, suggesting that SoundHound’s core voice AI business is gaining traction beyond acquisition-driven expansion.
The momentum was supported by several high-profile automotive wins. During the quarter, SoundHound signed a new seven-figure agreement with a prominent Japanese automaker to deploy its voice assistant globally across vehicles. The company also expanded its geographical presence in Latin America through an expansion agreement with a multinational original equipment manufacturer (OEM) in South America. Management additionally noted that multiple automotive brands are integrating SOUN’s Voice Commerce platform, which allows drivers to place food orders, reserve parking and complete transactions directly from vehicles through voice commands.
The deployment of SoundHound's new Orchestrated Agent System, OASYS, could become a differentiator in the competitive auto AI market. The platform enables enterprises to build and deploy AI agents across multiple channels, including cars, TVs, phones and kiosks, while continuously improving performance through real-world interactions. Management stated that automakers can use the system for commerce-driven applications such as ordering coffee, food pickup and reservations while driving, potentially creating recurring monetization opportunities for both SoundHound and vehicle manufacturers.
Overall, the 88% organic growth suggests SoundHound is building credibility in automotive AI, but whether SOUN becomes a true auto AI leader will depend on sustained OEM wins, broader rollout of GenAI upgrades and successful monetization of in-car voice commerce.
Competitive Landscape: Microsoft and C3.ai
Among enterprise AI competitors, Microsoft (MSFT - Free Report) and C3.ai (AI - Free Report) stand out as key rivals to SoundHound AI as the race for conversational, agentic and enterprise-grade AI platforms accelerates.
Microsoft has rapidly scaled its AI ecosystem through Azure AI, Copilot and Foundry Agent Services, positioning itself as one of the dominant infrastructure and enterprise AI providers globally. In third-quarter fiscal 2026, Microsoft’s AI business surpassed a $37 billion annual revenue run rate, up 123% year over year. The company is increasingly focused on “agentic systems” capable of orchestrating workflows, reasoning across enterprise data and executing multistep tasks, areas that overlap with SOUN’s OASYS platform and voice commerce ambitions.
While C3.ai primarily targets enterprise operations and industrial AI use cases rather than automotive voice assistants, its growing focus on generative AI agents and enterprise automation increasingly overlaps with SoundHound’s broader agentic AI strategy. Both companies are attempting to monetize AI through recurring software and usage-based models, though SoundHound differentiates itself through its proprietary speech AI technology, automotive integrations and voice-commerce ecosystem tailored specifically for connected vehicles and IoT devices.
SOUN’s Price Performance, Valuation & Estimates
SoundHound shares have declined 18.4% in the year-to-date period, outperforming the Zacks Computers - IT Services industry but underperforming the broader Computer and Technology sector and the S&P 500 index.
SOUN YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 14.1, below the industry’s average of 12.15.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 18 cents from 9 cents. The revised estimates for 2026 imply a year-over-year decline of 38.5%.
EPS Trend of SOUN Stock
Image Source: Zacks Investment Research
SOUN’s Zacks Rank
SOUN currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.