AudioCodes Q1 Revenue $62.14M Beats Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Should l Buy AUDC?
Reports Q1 revenue $62.14M, consensus $61.5M. "I am pleased to announce strong financial results for the first quarter of 2026, reflecting effective execution of our strategic initiatives. In the first quarter of 2026, we made important progress in our transformation into an AI-driven hybrid cloud software and services organization," stated Shabtai Adlersberg, president and CEO of AudioCodes.
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Analyst Views on AUDC
Wall Street analysts forecast AUDC stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 8.430
Low
12.50
Averages
12.50
High
12.50
Current: 8.430
Low
12.50
Averages
12.50
High
12.50
No data
About AUDC
AudioCodes Ltd is an Israel-based software publisher. The Company provides communications software, end-to-end products and productivity solutions for the digital workplace. Company's solution's enables enterprises and service providers to build and operate all-IP voice networks for delivering unified communications, contact centers, and hosted business services, whether in the cloud or on premises. AudioCodes Ltd categorizes its products and services into three main business lines: Enterprise solution consists products and solutions designed to simplify the implementation of state-of the-art enterprise communications and contact center solutions; Service provider solutions consist high performance, versatile CPE devices deliver on-premises connectivity to cloud UC services and SIP trunks for business customers; Voice.ai category leverage the latest in voice recognition, AI and machine learning technologies to create voice-driven solutions. The Company servers its customer worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AudioCodes Q1 2026 Earnings Highlights
- Significant Revenue Growth: AudioCodes reported Q1 2026 revenue of $62.1 million, with service revenue at $34.0 million, representing 54.7% of total revenue, demonstrating effective execution in its transformation into a voice AI-driven hybrid cloud software and services company.
- Sustained Annual Recurring Revenue: CEO Shabtai Adlersberg highlighted that Live Managed Services and Voice AI, the two primary growth engines, contributed to $80 million in annual recurring revenue in Q1, growing nearly 20% year-over-year, laying a solid foundation for long-term growth.
- Strong Financial Performance: The company reported a GAAP net income of $2.0 million for Q1, with diluted earnings per share of $0.07, and a non-GAAP net income of $3.8 million, with diluted earnings per share of $0.14, indicating robust profitability and cash flow.
- Optimistic Outlook: Management reiterated guidance for 2026 revenue in the range of $247 million to $255 million and non-GAAP EPS of $0.60 to $0.75, while expecting Voice AI business to achieve 40% to 50% growth in 2026, aiming for approximately $80 million in business by 2028.
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AudioCodes Reports Strong Q1 2026 Financial Results
- Revenue Growth: In Q1 2026, AudioCodes reported revenues of $62.1 million, a 2.9% increase from $60.4 million in Q1 2025, indicating sustained demand in the enterprise voice and VoiceAI solutions market.
- Net Income Decline: Despite revenue growth, net income fell from $4.0 million in Q1 2025 to $2.0 million, resulting in diluted earnings per share dropping from $0.13 to $0.07, reflecting challenges in cost management.
- Annual Recurring Revenue Surge: The company achieved an Annual Recurring Revenue (ARR) of $80 million, marking a nearly 20% year-over-year increase, driven by strong growth in its UCaaS and CX services, particularly a 50% surge in demand for its Conversational AI business.
- Share Buyback and Dividend: During Q1 2026, AudioCodes repurchased 1,740,329 ordinary shares for a total of $13.7 million and paid a cash dividend of approximately $5.3 million, demonstrating a commitment to shareholder returns while reflecting a healthy cash flow position.
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AudioCodes Reports Q1 2026 Financial Highlights
- Revenue Growth: In Q1 2026, AudioCodes reported a 2.9% year-over-year revenue increase to $62.1 million, indicating sustained demand in the enterprise voice and VoiceAI solutions market, although the growth rate suggests competitive pressures.
- Net Income Decline: The net income for the first quarter was $2.0 million, or $0.07 per diluted share, down from $4.0 million and $0.13 per diluted share in Q1 2025, highlighting challenges in cost management and market competition.
- Strong Cash Flow: The company generated $12.8 million in cash from operating activities during the quarter, demonstrating robust cash flow management despite ongoing share repurchases and dividend payments, which bolsters investor confidence.
- Shareholder Return Program: AudioCodes repurchased 1,740,329 ordinary shares at a cost of $13.7 million in Q1 and declared a cash dividend of $0.20 per share in February 2026, reflecting a strong commitment to shareholder returns and financial health.
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AudioCodes Q1 Earnings Beat Expectations Despite EPS Miss
- Revenue Growth: AudioCodes reported Q1 revenue of $62.1 million, reflecting a 2.8% year-over-year increase, which exceeded market expectations by $0.6 million, indicating stable demand and continued market share growth in the communications sector.
- Gross Margin Performance: The quarterly Non-GAAP gross margin stood at 66.3%, slightly below expectations, yet it demonstrates effective strategies in cost control and product pricing, ensuring profitability amidst competitive pressures.
- Operating Cash Flow: The net cash provided by operating activities for the quarter was $12.8 million, highlighting the company's healthy cash flow management, which supports future investments and shareholder returns.
- Operating Margin: The Non-GAAP operating margin was reported at 7.7%, falling short of market expectations, but it still reflects the company's ongoing efforts to enhance operational efficiency, potentially laying the groundwork for future profit growth.
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AudioCodes Reports First Quarter 2026 Financial Results
- Revenue Growth: In Q1 2026, AudioCodes reported a 2.9% year-over-year revenue increase to $62.1 million, indicating stable market demand for its enterprise voice and VoiceAI solutions, despite the modest growth rate.
- Service Revenue Increase: Service revenues rose by 4.3% year-over-year to $34.0 million, reflecting strong customer preference for managed services in UCaaS and CX, thereby enhancing the company's competitive position in a rapidly evolving market.
- Share Buyback Program: During the quarter, AudioCodes repurchased 1,740,329 ordinary shares at a total cost of $13.7 million, demonstrating confidence in its stock value while also providing cash dividends to shareholders, which further strengthens investor trust.
- Strong Cash Flow: The company generated $12.8 million in cash flow from operating activities in Q1, and although cash and cash equivalents decreased to $40.9 million from the end of last year, it maintains a healthy cash flow position, supporting future investments and expansion.
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AudioCodes to Announce Q1 Earnings on May 5th
- Earnings Announcement Schedule: AudioCodes is set to release its Q1 2023 earnings report on May 5th before market open, with a consensus EPS estimate of $0.16, reflecting a 6.7% year-over-year increase, indicating a slight improvement in profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q1 is $61.5 million, representing a 1.8% year-over-year growth; although the growth is modest, it demonstrates the company's stability in the market, potentially attracting investor interest in its future growth prospects.
- Historical Performance Review: Over the past two years, AudioCodes has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating a degree of uncertainty in its financial performance that may affect market confidence in its future results.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, with revenue estimates also seeing no upward revisions and one downward revision, reflecting analysts' cautious outlook on the company's future performance, which could negatively impact investor sentiment.
See More
AudioCodes Q1 2026 Earnings Highlights
- Significant Revenue Growth: AudioCodes reported Q1 2026 revenue of $62.1 million, with service revenue at $34.0 million, representing 54.7% of total revenue, demonstrating effective execution in its transformation into a voice AI-driven hybrid cloud software and services company.
- Sustained Annual Recurring Revenue: CEO Shabtai Adlersberg highlighted that Live Managed Services and Voice AI, the two primary growth engines, contributed to $80 million in annual recurring revenue in Q1, growing nearly 20% year-over-year, laying a solid foundation for long-term growth.
- Strong Financial Performance: The company reported a GAAP net income of $2.0 million for Q1, with diluted earnings per share of $0.07, and a non-GAAP net income of $3.8 million, with diluted earnings per share of $0.14, indicating robust profitability and cash flow.
- Optimistic Outlook: Management reiterated guidance for 2026 revenue in the range of $247 million to $255 million and non-GAAP EPS of $0.60 to $0.75, while expecting Voice AI business to achieve 40% to 50% growth in 2026, aiming for approximately $80 million in business by 2028.
See More
AudioCodes Reports Strong Q1 2026 Financial Results
- Revenue Growth: In Q1 2026, AudioCodes reported revenues of $62.1 million, a 2.9% increase from $60.4 million in Q1 2025, indicating sustained demand in the enterprise voice and VoiceAI solutions market.
- Net Income Decline: Despite revenue growth, net income fell from $4.0 million in Q1 2025 to $2.0 million, resulting in diluted earnings per share dropping from $0.13 to $0.07, reflecting challenges in cost management.
- Annual Recurring Revenue Surge: The company achieved an Annual Recurring Revenue (ARR) of $80 million, marking a nearly 20% year-over-year increase, driven by strong growth in its UCaaS and CX services, particularly a 50% surge in demand for its Conversational AI business.
- Share Buyback and Dividend: During Q1 2026, AudioCodes repurchased 1,740,329 ordinary shares for a total of $13.7 million and paid a cash dividend of approximately $5.3 million, demonstrating a commitment to shareholder returns while reflecting a healthy cash flow position.
See More
AudioCodes Reports Q1 2026 Financial Highlights
- Revenue Growth: In Q1 2026, AudioCodes reported a 2.9% year-over-year revenue increase to $62.1 million, indicating sustained demand in the enterprise voice and VoiceAI solutions market, although the growth rate suggests competitive pressures.
- Net Income Decline: The net income for the first quarter was $2.0 million, or $0.07 per diluted share, down from $4.0 million and $0.13 per diluted share in Q1 2025, highlighting challenges in cost management and market competition.
- Strong Cash Flow: The company generated $12.8 million in cash from operating activities during the quarter, demonstrating robust cash flow management despite ongoing share repurchases and dividend payments, which bolsters investor confidence.
- Shareholder Return Program: AudioCodes repurchased 1,740,329 ordinary shares at a cost of $13.7 million in Q1 and declared a cash dividend of $0.20 per share in February 2026, reflecting a strong commitment to shareholder returns and financial health.
See More
AudioCodes Q1 Earnings Beat Expectations Despite EPS Miss
- Revenue Growth: AudioCodes reported Q1 revenue of $62.1 million, reflecting a 2.8% year-over-year increase, which exceeded market expectations by $0.6 million, indicating stable demand and continued market share growth in the communications sector.
- Gross Margin Performance: The quarterly Non-GAAP gross margin stood at 66.3%, slightly below expectations, yet it demonstrates effective strategies in cost control and product pricing, ensuring profitability amidst competitive pressures.
- Operating Cash Flow: The net cash provided by operating activities for the quarter was $12.8 million, highlighting the company's healthy cash flow management, which supports future investments and shareholder returns.
- Operating Margin: The Non-GAAP operating margin was reported at 7.7%, falling short of market expectations, but it still reflects the company's ongoing efforts to enhance operational efficiency, potentially laying the groundwork for future profit growth.
See More
AudioCodes Reports First Quarter 2026 Financial Results
- Revenue Growth: In Q1 2026, AudioCodes reported a 2.9% year-over-year revenue increase to $62.1 million, indicating stable market demand for its enterprise voice and VoiceAI solutions, despite the modest growth rate.
- Service Revenue Increase: Service revenues rose by 4.3% year-over-year to $34.0 million, reflecting strong customer preference for managed services in UCaaS and CX, thereby enhancing the company's competitive position in a rapidly evolving market.
- Share Buyback Program: During the quarter, AudioCodes repurchased 1,740,329 ordinary shares at a total cost of $13.7 million, demonstrating confidence in its stock value while also providing cash dividends to shareholders, which further strengthens investor trust.
- Strong Cash Flow: The company generated $12.8 million in cash flow from operating activities in Q1, and although cash and cash equivalents decreased to $40.9 million from the end of last year, it maintains a healthy cash flow position, supporting future investments and expansion.
See More
AudioCodes to Announce Q1 Earnings on May 5th
- Earnings Announcement Schedule: AudioCodes is set to release its Q1 2023 earnings report on May 5th before market open, with a consensus EPS estimate of $0.16, reflecting a 6.7% year-over-year increase, indicating a slight improvement in profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q1 is $61.5 million, representing a 1.8% year-over-year growth; although the growth is modest, it demonstrates the company's stability in the market, potentially attracting investor interest in its future growth prospects.
- Historical Performance Review: Over the past two years, AudioCodes has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating a degree of uncertainty in its financial performance that may affect market confidence in its future results.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, with revenue estimates also seeing no upward revisions and one downward revision, reflecting analysts' cautious outlook on the company's future performance, which could negatively impact investor sentiment.
See More
