SoundHound vs. C3.ai: Which AI Stock Is the Better Buy Ahead of Earnings?

AI-focused small-cap stocks SoundHound AI SOUN +5.87% ▲ and C3.ai AI +0.72% ▲ are gearing up to report earnings this week. SoundHound will announce its Q4 2025 results on February 26, while C3.ai is set to report Q3 fiscal 2026 numbers on February 25. Using the TipRanks Stock Comparison tool, we put SOUN and AI side by side to see which stock analysts favor. Heading into earnings, analysts are much more bullish on SOUN with a Strong Buy rating and a projected upside of around 100%. In comparison, AI stock has a Hold rating and a more modest upside potential of 47%.

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For context, SoundHound AI focuses on voice technology. It builds AI tools that understand speech and language, and it sells these solutions to different industries. C3.ai, on the other hand, makes AI software for businesses. Its tools help companies use their data better, improve efficiency, and streamline daily operations. Year-to-date, both stocks are down by over 20%.

What Analysts Expect from SoundHound’s Q4 Earnings

Wall Street expects SoundHound AI to post a loss of $0.10 per share. That’s a big improvement from the $0.69 per share loss a year ago. Meanwhile, revenue is projected to jump more than 55% year over year to about $53.98 million. For the full year, the company expects revenue between $165 million and $180 million — nearly double the $84.7 million it reported in 2024.

SoundHound is still focused on growth, so it isn’t profitable yet. The company is spending heavily to improve its technology and win more customers, which is keeping it in the red. That said, management believes losses will shrink in the coming quarters as the business scales. Additionally, strong revenue growth and higher guidance point to promising long-term potential.

Is SOUN Stock a Good Buy?

On Wall Street, analyst Scott Buck at H.C. Wainwright has the highest price target on SOUN at $26. That suggests upside of more than 200% from current levels. Buck said SoundHound plans to reach adjusted EBITDA break-even by late 2026, while still investing for growth. That approach could weigh on margins in the near term.

Overall, SOUN stock has received five Buys and one Hold from analysts over the past three months.

What to Expect from C3.ai’s Q3 Earnings

For C3.ai, Wall Street expects Q3 FY26 loss of $0.29 per share, compared to a loss of $0.12 a year ago. Revenue is projected to fall over 20% year-over-year to around $75.56 million, according to C3.ai’s TipRanks Stock Forecast Page. For the full year, the company forecasts a non-GAAP operating loss of $180.5 million to $210.5 million and $44.0 million to $52.0 million for the quarter.

Wall Street analysts are cautious on AI stock ahead of earnings. Five-star analyst Koji Ikeda at BofA recently reiterated his Sell rating on C3.ai. Ikeda pointed to rising competition and concerns about the company’s long-term position in enterprise AI. Reflecting those risks, he cut his price target to $10 from $14, valuing the stock at a lower revenue multiple than other infrastructure software peers.

He also noted that a meaningful share of C3.ai’s revenue still comes from pilot projects rather than long-term subscription contracts. In the upcoming earnings report, he wants clearer proof that those pilots are converting into steady, recurring revenue.

Is C3.ai a Good Stock to Buy?

Looking ahead, Ikeda expects only modest revenue growth and deeply negative free cash flow margins. Overall, he believes the stock could lag faster-growing and more profitable software companies in the years ahead.

On average, AI stock has one Buy, five Holds, and three Sells assigned over the last three months.

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