AudioCodes Ltd. (AUDC) Earnings
AudioCodes Ltd. is expected to report next earnings on October 29, 2026 (in NaN days), with a consensus EPS estimate of $0.16. AUDC has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise +17.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 4, 2026 | $0.14 | $0.15 | +7.1% | $63M | +0.9% |
| May 5, 2026 | $0.16 | $0.14 | -12.5% | $62M | +1.0% |
| Feb 3, 2026 | $0.16 | $0.16 | +0.0% | $63M | +1.8% |
| Nov 4, 2025 | $0.10 | $0.17 | +75.2% | $62M | -0.7% |
| Jul 29, 2025 | $0.17 | $0.14 | -17.6% | $61M | +0.7% |
| Feb 4, 2025 | $0.22 | $0.37 | +68.2% | $62M | +0.5% |
| Nov 2, 2023 | $0.18 | $0.25 | +38.9% | $62M | +0.1% |
| Aug 1, 2023 | $0.09 | $0.16 | +77.8% | $60M | -0.6% |
| Feb 7, 2023 | $0.39 | $0.36 | -7.7% | $71M | -2.2% |
| Nov 2, 2022 | $0.35 | $0.32 | -8.6% | $70M | -1.0% |
| Aug 2, 2022 | $0.34 | $0.34 | +0.0% | $68M | -0.1% |
| May 2, 2022 | $0.36 | $0.33 | -8.3% | $66M | +0.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 4, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Strategic Transformation Progress * The company is making steady progress on its strategic goal of transforming into an AI-driven cloud and edge software and services company, with growing contributions from high-quality recurring revenue. * Total backlog reached nearly $90 million at the end of Q2 2026, up 23% YoY from $73 million, providing strong topline visibility for future quarters. * The company maintains a unique market position combining legacy voice infrastructure leadership with deep expertise in connecting enterprise voice environments to AI services, enabling seamless, secure, compliant AI integration for customers. - Industry Trend & Voice AI Opportunity * Management identifies the rising adoption of generative/agentic AI, paired with growing customer preference for voice as the primary interaction medium with large language models, as a key industry shift accelerating conversational AI adoption across enterprises. * VoiceAI Connect, the company's core orchestration platform, is uniquely positioned to meet enterprise demand for flexible, open voice AI deployments that avoid vendor lock-in, with comprehensive pre-built integrations and support for all deployment models (on-prem, private cloud, public cloud). - Key Partnership & Ecosystem Momentum (Microsoft) * Microsoft is AudioCodes' largest partner, with Microsoft-related revenue expected to hit ~$170 million in 2026. New Microsoft Teams opportunities grew 14% YoY in Q2 2026, and total contract value for Microsoft-related activity rose 73% YoY to over $20 million. * AudioCodes was the only third-party solution named in Microsoft's June 2026 launch of Teams Phone Agent, and was the first vendor listed under Microsoft's new Teams Voice Agent certification program. It is the only vendor to hold both Microsoft Teams contact center and Teams AI voice agent certification. - Recent Notable Customer Wins * A follow-on $1 million+ deal with a large US multi-campus state university for Live Pro Teams, managed services, and hardware. * A global expansion deal with a European logistics firm for WebRTC to replace traditional toll-free numbers. * A capacity doubling order for VoiceAI Connect from a tier-one US healthcare provider, and a follow-on enterprise-wide deployment win with a North American retail conglomerate. * A competitive win for VOCA CIC with a leading Asian bank, replacing a legacy incumbent provider. * A major European airport logistics provider added AI-powered agent insights and omni-channel capabilities to its existing VOCA CIC deployment, increasing total contract value.
Guidance
- Management reiterated its full-year 2026 guidance for non-GAAP diluted net income per share to remain in the range of $0.60 to $0.75. - Management upwardly revised full-year 2026 revenue guidance to a new range of $251 million to $256 million, up from the prior guidance range of $247 million to $255 million.
Segment performance
Total Q2 2026 revenue was $63 million, up 3.1% year-over-year (YoY) from $61.1 million in Q2 2025. Services revenue hit $34.6 million, up 6.2% YoY, accounting for 54.9% of total revenue, while product revenue was roughly flat year-over-year. 1. Connectivity Segment (Gateway, SBCs, CPE): This cash-generating segment delivered stable revenue performance in line with expectations. The Microsoft Teams phone business within this segment grew 5% YoY in Q2 2026, with 5.6% YoY growth in H1 2026, putting the segment on track to reach ~$170 million in full-year 2026 revenue (representing ~66% of the company's total planned 2026 revenue). 2. Voice AI Segment: Revenue grew over 50% YoY in Q2 2026, with H1 2026 revenue up nearly 100% YoY versus H1 2025, putting the segment on track to hit its full-year 2026 target of 40-50% YoY growth. The segment targets reaching $50 million in annual revenue by the end of 2028. Key sub-segments include: - VoiceAI Connect & LiveHub: Grew over 50% YoY in H1 2026, driven by existing customer capacity expansion and new logo wins. - VOCA CIC (AI-first Microsoft Teams contact center): Delivered strong operational momentum with new competitive wins and existing customer expansion driven by added AI capabilities. - Meeting Insights Cloud Edition: Meeting volume doubled YoY, monthly recurring revenue grew ~150% YoY, and active users grew 50% YoY. - MIA Edge: Has 25 active accounts, with 10 in production and the rest in proof of concept/implementation, targeting regulated sectors requiring on-premise/hybrid AI deployment. Combined, the company's two core growth engines (AliveManage Services and VoiceAI) reached $84 million in annual recurring revenue (ARR) at the end of Q2 2026, growing 20% YoY, with ARR having doubled in the past three years.
Risks & headwinds
- Forward-looking results are subject to a range of disclosed risks including: general global economic and industry market conditions, supply and demand shifts, market adoption of new and existing products, competitive pricing and product pressures, successful execution of timely product and technology development including AI-related innovation, ability to adapt to changing regulatory requirements, potential need for additional financing, ability to meet financing agreement covenants, risks related to successful integration of acquired businesses, adverse impacts from pandemics or public health crises, operational disruptions from current and future hostilities in Israel, and disruptions related to mandatory military service obligations for Israeli personnel.