SoundHound AI's Next Earnings Report on Aug. 5 Could Send the Stock Soaring. Here's Why.

SoundHound AI Inc (SOUN -0.16%) is scheduled to report second-quarter earnings on Aug. 5. The company is in dire need of a positive update.Since the start of 2026, SoundHound AI shares have lost more than 40% of their value. And yet Wall Street analysts remains remarkable bullish on the artificial intelligence stock. Four analysts actively cover SoundHound AI, all of whom rate the stock a “buy.” Their average price target is $12.75, suggesting more than 100% upside over the next 12 months.The most bullish analyst is Thomas Blakely of Cantor Fitzgerald. He has a $15 price target — one he reaffirmed on May 8, when the stock hovered near $9 per share. SoundHound AI stock has lost around 30% since then, but Blakely apparently remains as bullish as ever.In the past, Blakely has been particularly excited about SoundHound AI’s ability to cross-sell its expand product portfolio to existing customers."SoundHound AI has executed very well, in our view, cross-selling and upselling voice and conversational AI services to its installed base, as well as expanding fully automated voice volumes related to its acquisition of (enterprise AI company) Amelia in late summer 2024," he detailed in a recent note to investors.Indeed, SoundHound AI’s latest investor presentation heavily references the company’s ability to sell compatible solutions to customers across a wide range of verticals. But is SoundHound AI actually making progress on this front? There are two major numbers I’ll be monitoring during the upcoming earnings release to gauge the company’s success (or lack thereof).Today's Change(-0.16%) $-0.01Current Price$6.13Here’s what to watch for during SoundHound AI’s earnings callWall Street remains bullish on SoundHound AI largely because analysts believe the company can accelerate the cross-selling of products to existing customers. This would not only accelerate sales growth beyond simply acquiring new customers but also boost margins, as selling to existing customers usually doesn’t involve the high costs of acquiring new customers.Given this, the two numbers I’ll be tracking closely are revenue growth and net margins. Image source: Getty Images For 2026, SoundHound AI is guiding for revenue of $225 million to $260 million. If realized, that would imply a year-over-year growth rate between 33% to 54%. On average, analysts are predicting growth of just 37.4%. Next year, sales growth is expected to be just 16.9%. If the pace of cross-selling is successful, we could easily see SoundHound AI beat these estimates, likely resulting in upside to today’s stock price.Margins should prove just as critical as sales growth. Analysts expect a $0.13 loss per share this year. In 2027, a $0.18 per share loss is expected. SoundHound AI has ramped up its acquisition activity recently, including a $43 million deal to acquire LivePerson. That deal is expected to close by the end of the year. While these acquisitions enhance SoundHound AI’s cross-selling potential, they will also increase operational costs, adding more pressure on margins.SoundHound AI continues to grow sales at an impressive pace. But profitability remains elusive. While I don’t expect the company to reach profitability in 2026 or 2027, improved margins would go a long way in regaining the market’s confidence. A lower share price increases the dilutive pressure of future capital raises.As simple as it sounds, SoundHound AI’s quarterly earnings report will be headlined by top-line sales growth and the trajectory of its path towards profitability. Expect shares to react positively or negatively based on what’s revealed later this week.