AudioCodes Posts Q3 2026 Revenue Growth as Voice AI and Cloud Expand
AudioCodes reported third-quarter 2026 revenue of 64.1 million dollars, driven by cloud services and Voice AI growth. GAAP net income rose to 3.6 million dollars, while non-GAAP profit dipped amid share buybacks.
AudioCodes, traded on NASDAQ under the ticker AUDC, reported its financial results for the third quarter of 2026, posting growth in revenues and GAAP net income driven by the expansion of cloud services and voice artificial intelligence.
However, the company's non-GAAP net income declined compared to the same period last year, and its liquid financial assets decreased following share buybacks and dividend distributions.
Revenue for the quarter totaled 64.1 million dollars, marking a 4.2 percent increase compared to 61.5 million dollars in the corresponding quarter last year. The primary growth engine was the services sector, where revenues surged 19.9 percent to reach 37.1 million dollars, accounting for approximately 58 percent of total company revenues.
GAAP net income reached 3.6 million dollars, up 33 percent from 2.7 million dollars in the parallel quarter. Diluted earnings per share rose from 10 to 15 cents. The gross margin stood at 65.7 percent, while the operating margin was 5.3 percent.
Profitability and Cash Flow Dynamics
In contrast, non-GAAP net income, which excludes expenses such as stock-based compensation and amortization of intangible assets, fell from 4.9 million dollars to 4 million dollars, representing an 18.4 percent decrease. Non-GAAP diluted earnings per share declined from 17 to 16 cents, with a non-GAAP operating margin of 7.4 percent.
CEO and President Shabtai Adlerberg noted that the company's two main growth engines—managed cloud services and Voice AI solutions—pushed annual recurring revenue (ARR) to 87 million dollars, a 16 percent increase year-over-year.
Voice AI activity expanded by roughly 50 percent in the first nine months of the year compared to the same period in 2025. The company reported record orders for its Voice AI Connect and Live Hub solutions, which integrate artificial intelligence capabilities into enterprise communication systems.
Concurrently, revenues from Voca CIC, a customer service center solution based on the Microsoft Teams environment, grew by over 40 percent year-over-year. Revenues from Meeting Insight and Mia Edge solutions, designed for meeting analysis and AI-driven insights, more than doubled.
Capital Return and Shareholder Returns
Alongside business expansion, AudioCodes continued to return capital to shareholders. During the quarter, the company repurchased approximately 1.52 million of its shares for a total consideration of 15.1 million dollars.
Cash flow from operating activities totaled 4.1 million dollars, while cash, deposits, and financial investments stood at 47.1 million dollars at the end of September, compared to 75.7 million dollars at the end of 2025. The company explained that the decline stemmed primarily from share buybacks and dividend distributions in the first and third quarters.
