Austria, who were undefeated in 10 qualifying games, were beaten 2-0 by old rivals Hungary in the opening match of Euro 2016 Group F on Tuesday.
The Hungarians, who only reached the finals through the playoffs, took the lead with a rare goal by forward Adam Szalai in the 63rd minute.
It his first at international level since October 2014.
Austria thought they had equalised soon after but Martin Hinteregger’s effort was disallowed for a foul by Aleksandar Dragovic who was sent off after receiving a second yellow card.
Substitute Zoltan Stieber secured victory three minutes from the end.