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AUDCBullishEarningsShort Term

High materiality8/10

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share

StockNews.AIAug 4, 2:00 AM EDT1 source

Trading thesisImportance 8/10

Bullish over the next 3–6 months on buyback, dividend, and ARR expansion.

AI summary

What happened and why it matters

AudioCodes reported Q2 2026 revenue of $63 million, up 3.1% year over year, with services revenue of $34.6 million (+6.2%). Annual recurring revenue reached $84 million, a 20% YoY rise supported by Live services and Voice AI, aided by momentum in Microsoft Teams deployments. The company announced a semiannual dividend of $0.20 per share and a share-repurchase program, supporting near-term upside while valuation reflects modest GAAP profitability.

ARR growth to $84M supports longer-term revenue visibility.
Share buyback ($8.9M) and $0.20 dividend provide near-term equity support.
AUDC cash balance ~$64.2M; buyback approval up to $25M through Nov 12, 2026.
Microsoft Teams momentum backs AudioCodes’ teams-based contact-center solutions.

Sentiment rationale

The combination of ARR expansion, a sizable share repurchase, and a forthcoming dividend typically supports near-term share price and investor sentiment, even if GAAP margins remain modest. Historical precedent shows mid-cap tech/service names often pop on capital-return signals when earnings beat or align with strategic growth stories.

Key facts

01
AUDC Q2 revenue $63M, up 3.1% YoY; services revenue $34.6M, up 6.2%.
02
ARR rose to $84M, up 20% YoY; Microsoft Teams business up 5%.
03
GAAP margins: gross 65.7%, operating 5.1%; Non-GAAP: gross 65.8%, op 7.4%.
04
Share buyback: 950,133 shares for $8.9M; semiannual dividend of $0.20.
05
Dividend payable Sep 3, 2026; Israel court-approved buyback up to $25M.

Earnings

Earnings. The release combines quarterly results with a dividend and buyback, highlighting profitability metrics, ARR growth, and strategic pivot to voice AI/cloud software.