Audiocodes’ Earnings Call Contradictions: Teams Revenue Claims and Q&A Discrepancies Clash

Date of Call: Aug 4, 2026

Financials Results

• Revenue: $63M, up 3.1% YOY
• EPS: $0.02 per diluted share (GAAP), compared to $0.01 per diluted share in Q2 2025
• Gross Margin: 65.7% (GAAP), compared to 64.1% in Q2 2025; 65.8% (non-GAAP), compared to 64.5% in Q2 2025
• Operating Margin: 5.1% (GAAP), compared to 4.3% in Q2 2025; 7.4% (non-GAAP), compared to 7.2% in Q2 2025

Guidance:

• Reiterated 2026 non-GAAP diluted net income per share guidance in the range of $0.60 to $0.75.
• Raised 2026 revenue guidance to a range of $251M to $256M, compared to the previous range of $247M to $255M.

Business Commentary:

Revenue and Segment Growth:

• AudioCodes reported revenue of $63 million for Q2 2026, an increase of 3.1% over Q2 2025.
• Services revenue grew 6.2% year-over-year, accounting for 54.9% of total revenue.
• Revenue growth was driven by momentum in Live Managed Services and Voice AI, with Microsoft Teams phone business achieving 5% year-over-year growth.

Voice AI and Conversational AI Expansion:

• The Voice AI business revenue grew over 50% year-over-year, with first-half revenue growing close to 100%.
• This growth was driven by strong operational momentum, new customer wins, and expanding AI capabilities within existing customer engagements.

Microsoft Teams Phone Business Performance:

• Revenue from Microsoft Teams phone business grew 5% year-over-year in Q2 2026, with a total contract value increase of 73%.
• Pipeline momentum was strong, with new opportunities growing 14% year-over-year, indicating a healthy demand environment.

Backlog and Recurring Revenue Growth:

• The backlog reached nearly $90 million, up 23% from a year ago.
• Annual recurring revenue from Live Managed Services and Voice AI doubled in the last three years, providing a strong foundation for future growth.

Geographic Revenue Distribution:

• Revenue distribution was North America 50%, EMEA 33%, Asia Pacific 14%, and Central and Latin America 3%.
• The geographic distribution reflects the company's broad customer base and market presence across key regions.

Sentiment Analysis:

Overall Tone: Positive

• CEO stated: 'Tech and core financial results were solid. Most important, they reflect steady progress on our strategic initiative...' CFO noted revenue guidance was raised. Management highlighted 'strong momentum' and 'continued strong growth' in key areas like Microsoft Teams and Voice AI, with pipeline expansion and increased recurring revenue.

Contradiction Point 1

Microsoft Teams Phone Business Revenue Contribution and Outlook

Contradiction on the stated percentage of total planned revenue that Microsoft Teams revenue represents.

Unidentified Participant - Unidentified Participant

2026Q2: The company expects to reach roughly $170 million in Microsoft Teams revenue by year-end 2026, which would be about 66% of the company's total planned revenue. - [Shabtai Allisberg](CEO)

What are the key drivers of Q2 revenue growth and the performance of the Microsoft Teams phone business? - Conference Call Participant (Question not specified in transcript)

2026Q2: This represents about 66% of total planned company revenue. - [Shabtai Adlersberg](CEO)

Contradiction Point 2

Availability and Structure of Q&A Session

The 2026Q2 call featured a detailed Q&A session with participant questions, while the 2026Q1 call had none.

Unidentified Participant - Unidentified Participant

2026Q2: Below are the transcripts of the Questions & Answers section, along with a summary of the questions and answers from the latest 2026Q2 quarter's earnings call... - Provided transcript includes multiple questions from participants with answered.

What were the key drivers of Q2 revenue growth and how did the Microsoft Teams phone business perform? - N/A

2026Q1: The transcript does not contain any direct questions from participants. The 'Question-and-Answer Session' section simply closes the call and thanks attendees, indicating that no live Q&A took place. - Provided transcript is a presentation with no Q&A.

Contradiction Point 3

Gross Margin Expectations

The expected impact of tariffs on gross margin is presented differently.

Unidentified Participant - Unidentified Participant

2026Q2: Pipeline visibility is improving. The company is increasing its sales force and expanding operations into more countries. - [Shabtai Allisberg](CEO)

What are the key drivers of Q2 revenue growth and the performance of the Microsoft Teams phone business? - Joshua Reilly (Needham & Company, LLC)

2025Q4: Gross margin is expected to remain within the long-term target range of 65% to 68%, as the product mix shifts more towards software and services. Tariff-related costs are estimated to be lower in 2026, around $2.3 million compared to $2.7 million in 2025. - [Shabtai Allisberg](CEO)

Contradiction Point 4

Outlook for Conversational AI Growth

The growth target for the Voice AI segment is described with differing specificity.

Unidentified Participant - Unidentified Participant

2026Q2: The Voice AI business revenue grew over 50% year-over-year, with first-half 2026 revenue growing nearly 100% compared to the same period in 2025. This performance brings the company closer to achieving its target of 40-50% growth for the full year 2026. - [Shabtai Allisberg](CEO)

What is the performance and outlook for the Voice AI segment, and what recent developments in conversational AI impact this outlook? - Joshua Reilly (Needham & Company, LLC)

2025Q4: Regarding the updated financial target for conversational AI growth through 2028, is the 40% to 50% annual growth intended to be a CAGR? - Joshua Reilly (Needham & Company, LLC)