AudioCodes Ltd. (AUDC) AI Stock Analysis

NASDAQ: AUDCAI research summary: business, growth, valuation, analysts, bull and bear case.

AUDC AI stock analysis summary

AI Research

AudioCodes Ltd. (NASDAQ: AUDC) provides communications software, networking equipment, and voice productivity solutions for modern digital workplaces and unified communications. Across the trailing twelve months, the company generated $249.3M in revenue with an operating margin of 5.1% and a net profit margin of 2.8%. The company maintains a conservative balance sheet with $20.0M in net cash and yields 3.57% through semiannual dividend distributions.

Market cap
$270.5M
Revenue (TTM)
$249.3M
P/E
44.8x
fwd 13.1x
1Y return
26.3%
S&P 500 16.8%
Avg. target
$12.50
11.6% vs last close

Bull case

  • Forward P/E of 13.1x and EV-to-EBITDA of 12.3x trade at a discount to the US-listed Technology peer medians of 18.8x and 16.6x.
  • The balance sheet maintains positive liquidity with $20.0M in net cash and a current ratio of 1.90 as of June 30, 2026.
  • Quarterly net earnings increased by 89.4% year-over-year in the latest quarter ended June 30, 2026.

Bear case

  • Long-term revenue expansion has been modest, with a 5-year revenue CAGR of just 2.2% from FY2020 through FY2025.
  • Profitability has declined relative to prior years, with FY2025 net income of $9.0M well below the $33.8M achieved in FY2021.
  • Earnings execution has been inconsistent, with the company beating EPS estimates in only 1 of the last 4 quarters.

What AudioCodes does

AudioCodes Ltd. delivers advanced communications software, hardware products, and productivity solutions designed for the digital workplace. Its product portfolio spans unified communications, contact centers, VoiceAI business lines, and service providers. Key offerings include session border controllers, VoIP network routing solutions, media gateways, multi-service business routers, IP phones, and life cycle management tools. AudioCodes also provides management software such as the One Voice Operations Center, Device Manager, and AudioCodes Routing Manager. In addition, it develops solutions tailored for Microsoft Teams and Skype for Business environments, including AudioCodes Live, User Management Pack 365, survivable branch appliances, and voice applications like SmartTAP and Meeting Insights.

Growth and profitability

AudioCodes recorded a 5-year revenue CAGR of 2.2% from FY2020 through FY2025. Annual revenue peaked at $275.1M in FY2022 before contracting 11.2% in FY2023 to $244.4M. In FY2025, revenue recovered slightly by 1.4% to $245.6M, while net income came in at $9.0M with a net margin of 3.6%, down from $33.8M and a 13.6% net margin in FY2021. Gross margins have held steady, registering 65.0% in FY2025. For the trailing twelve months, revenue reached $249.3M with diluted EPS of $0.25. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.1% year-over-year, while quarterly earnings jumped 89.4%.

AUDC income statement →

Balance sheet and cash flow

As of June 30, 2026, AudioCodes held $61.4M in cash and short-term investments alongside $41.4M in total debt, resulting in a net cash position of $20.0M. The company maintains a current ratio of 1.90 and a debt-to-equity ratio of 0.28 on shareholders' equity of $145.8M. Operating cash flow stood at $29.4M in FY2025, with free cash flow of $22.9M after $6.5M in capital expenditures. During FY2025, the company deployed $30.6M into share buybacks and paid $10.9M in dividends, helping reduce its 5-year share count by 23.3%.

AUDC balance sheet →

Valuation and performance

At $11.20 per share, AudioCodes carries a market cap of $270.5M and an enterprise value of $236.7M. Its trailing P/E multiple is 44.8x, above the 28.1x median of its US-listed Technology peers, while its forward P/E is 13.1x compared to the peer median of 18.8x. AudioCodes trades at 1.1x sales and 12.3x EV-to-EBITDA, below peer group medians of 2.8x and 16.6x, respectively. The stock has gained 26.3% over the past year, outperforming the S&P 500's 16.8% return, though its 5-year return of -63.7% trails the index's 83.0% gain.

AUDC key metrics →

AUDC dividend

AudioCodes pays a semiannual dividend with an annualized forward rate of $0.40 per share, yielding 3.57%. The company has paid consecutive dividends for 9 years and has grown its dividend at an annualized rate of 7.1% over the past 5 years. Its payout ratio stands at 70.2%, and the last ex-dividend date was August 19, 2026.

AUDC dividend history →

What analysts expect

Wall Street coverage includes 1 Buy rating and zero Hold or Sell ratings. The mean price target is $12.50, representing an 11.6% upside from the last close of $11.20. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $253.1M and EPS of $0.61. Over the last four quarters, AudioCodes has beaten EPS estimates 1 time. The company is scheduled to report its next earnings on November 3, 2026.

AUDC forecast and price target →

Key risks and what to watch

  • The dividend payout ratio is elevated at 70.2%, leaving less buffer if earnings contract.
  • Revenue growth remains modest, with quarterly top-line expansion of 3.1% trailing the US-listed Technology peer median of 11.6%.
  • Operating margin of 5.1% over the trailing twelve months is below the US-listed Technology peer median of 13.2%.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this AUDC AI stock analysis

This page is an AI-written research summary of AudioCodes Ltd. (AUDC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AUDC income statement, AUDC balance sheet, AUDC key metrics, AUDC analyst forecast, AUDC chart. See the AUDC stock overview for the latest quote and news.

AUDC AI stock analysis FAQ

Does AudioCodes pay a dividend?

Yes, AudioCodes pays a semiannual dividend. Its forward annual payout is $0.40 per share, which represents a 3.57% dividend yield as of October 16, 2026.

What is AudioCodes' net cash position?

As of June 30, 2026, AudioCodes held $61.4M in cash and short-term investments against $41.4M in total debt, giving it a net cash balance of $20.0M.

What do analysts project for AudioCodes' full-year revenue?

For the fiscal year ending December 31, 2026, the analyst consensus projects revenue of $253.1M with EPS of $0.61.

When is the next earnings release date for AUDC?

AudioCodes is scheduled to report its next financial results on November 3, 2026.

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