Five9 IncZacks analysis highlights Five9's attractive valuation, positive earnings, cash flow growth, and share repurchase authorization
Five9 offers a more compelling growth opportunity than SoundHound AI in the customer AI market, according to a Zacks Investment Research analysis. SoundHound's first-quarter 2026 revenue rose 52% year over year, with its core Automotive and IoT AI business up 88% excluding acquisitions, and its pending LivePerson acquisition is expected to create a long-term revenue opportunity of roughly $500 million. Five9's first-quarter 2026 revenue increased 9% to $305 million, while adjusted EBITDA rose 41% and free cash flow climbed 42%, supported by a new $200 million share repurchase authorization. SoundHound trades at 10.49 times forward sales, well above the sector average of 6.18 times, while Five9 trades at just 1.33 times forward sales despite generating positive earnings and cash flows. Five9 shares have gained 15.3% year to date, outperforming SoundHound's 38.2% decline, and analysts expect Five9's 2026 earnings of $3.26 per share to grow 10.1%, while SoundHound is projected to post a loss of 15 cents per share.
Five9 IncZacks analysis highlights Five9's attractive valuation, positive earnings, cash flow growth, and share repurchase authorization
SoundHound AI IncZacks analysis compares SoundHound unfavorably on valuation, earnings, and year-to-date performance
LivePerson IncSoundHound's pending LivePerson acquisition expected to create $500M revenue opportunity
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