SOUN vs. BBAI: Which Beaten-Down AI Stock Is the Better Buy Before Q2 Earnings?

Small-cap AI companies SoundHound AI (SOUN) and BigBear.ai (BBAI) will announce their Q2 2026 earnings in the upcoming weeks. SoundHound will report its Q2 2026 results on August 5, while BigBear.ai will report on July 30. Using TipRanks’ Stock Comparison tool, we compared SOUN and BBAI across key metrics. Analysts have a Strong Buy rating on SOUN, while BBAI has a Hold rating. SOUN’s average price target of $12.75 implies an upside of over 100%. In contrast, BBAI’s stock price target of $5.0 implies an upside of 75%.

For context, SoundHound AI develops voice and conversational AI technology. Meanwhile, BigBear.ai provides data-based intelligence solutions, mainly serving government agencies and national security clients. So far this year, SOUN stock has declined by roughly 38%, while BBAI is down by 47%.

Below are the details.

What to Expect from SOUN’s Q2 Results

For Q2, analysts expect SoundHound to report a loss of $0.12 per share, improving from a loss of $0.19 per share a year ago. Revenue is projected at about $52.46 million, up more than 20% year-over-year. For full-year 2026, SoundHound has guided for revenue between $225 million and $260 million, representing strong annual growth of 33% to 54%.

Notably, SOUN stock still trades at a premium valuation. Its trailing price-to-sales ratio of 13.94 is well above the sector average of 3.41, showing investors have high expectations. They will be watching closely for improvements in profit margins and signs of when the company could become profitable.

Analysts’ Views on SOUN

Notably, analyst Scott Buck at H.C. Wainwright has the highest price target on SOUN at $20 per share, suggesting upside potential of more than 200% from current levels. Buck said SoundHound plans to reach adjusted EBITDA break-even by the end of 2026 with continued investment in growth. While this may put pressure on near-term profits, he believes the company is in a strong position to drive long-term growth.

Meanwhile, four-star-rated analyst Gil Luria at DA Davidson has a Buy rating on SoundHound with a $12 price target. He noted that the company started 2026 with stronger-than-expected revenue, driven by demand across multiple industries. However, Luria also cautioned that pressure on profitability and execution challenges could weigh on the stock in the near term, even though he remains optimistic about SoundHound’s long-term growth potential.

What Investors Should Expect from BBAI’s Q2 Earnings

For Q2, Wall Street expects BigBear.ai to report a loss of $0.05 per share, improving from a loss of $0.71 per share a year ago. Revenue is expected to rise more than 11% year-over-year to about $36.37 million. Overall, investors remain concerned about slow revenue growth and continued cash burn.

BigBear.ai trades at a lower valuation than SoundHound, with a price-to-sales ratio of 9.26. While that makes the stock look cheaper, the discount may reflect its slower growth and ongoing financial challenges. The company also depends heavily on government contracts, which can make revenue less predictable.

Analyst View on BBAI

BigBear.ai has limited analyst coverage on Wall Street, with just one analyst currently rating the stock. Four-star-rated analyst Michael Latimore of Northland Securities has a Hold rating on BBAI and a $5 price target, implying upside potential of 75%.

Meanwhile, TipRanks AI gives BigBear.ai a score of 50 out of 100 based on the OpenAI 5.2 model. It rates the stock Neutral with a $3 price target, implying about 5% upside. The cautious outlook reflects the company’s weak financials, making the upcoming earnings report an important test for investors.

Conclusion

Based on analyst forecasts, SOUN currently offers the stronger return potential of over 100%. On the other hand, BBAI stock has a Hold rating with an upside potential of 75%.