Cerence (CRNC) Stock Overview
Provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. More details
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
CRNC Community Fair Values
Create NarrativeSee what 38 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
JO
Jolt_Communications
Community ContributorUS$6.85FV • 64.1% undervalued intrinsic discount
73.0%Revenue growth p.a.
3.1k
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0
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Cerence Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$9.67 |
| 52 Week High | US$13.74 |
| 52 Week Low | US$5.85 |
| Beta | 2.73 |
| 1 Month Change | 42.84% |
| 3 Month Change | -14.65% |
| 1 Year Change | 0.21% |
| 3 Year Change | -63.63% |
| 5 Year Change | -89.19% |
| Change since IPO | -37.00% |
Recent News & Updates
CRNC: Profit Margin Gains And AI Partnerships Will Support Future Upside Potential
Analysts have lowered the price target on Cerence from $16.00 to $12.00 as they incorporate updated revenue expectations, higher projected profit margins, and a reduced assumed future P/E multiple. Analyst Commentary Recent Street research on Cerence presents a mix of caution around valuation and optimism about execution, with bullish analysts highlighting potential upside drivers even as some targets are reset.
CRNC: Future Upside Will Depend On Executing New AI Voice Partnerships
The analyst price target for Cerence has moved from $10.00 to $10.25, with analysts pointing to a mix of fresh bullish coverage and recent target reductions as they reassess fair value, risk, and earnings potential. Analyst Commentary Bullish Takeaways Bullish analysts initiating coverage highlight what they see as upside to fair value, which helps explain why the overall target level has not moved far from the updated US$10.25 mark despite recent reductions from other firms.
CRNC: AI Partnerships And Long Term Margins Will Support Upside Potential
Analysts have trimmed their price targets on Cerence by a few dollars, with cuts such as $3 and $1 reflecting updated views on its earnings power, discount rate, and long term margin profile. Analyst Commentary Recent research updates point to a more cautious tone around Cerence, with price target cuts of $3 and $1 signaling that some expectations for earnings power and profitability are being reset.CRNC: Future Upside Will Rely On Clearer AI Revenue Visibility
Our updated narrative on Cerence reflects a lower analyst price target, with fair value moving from $12.50 to $10.00 as analysts incorporate reduced revenue growth expectations, a slightly higher discount rate, a modestly higher profit margin outlook, and a lower assumed future P/E. Analyst Commentary Recent Street research on Cerence points to a more cautious stance, with multiple firms trimming price targets and aligning closer to the revised fair value of $10.00.CRNC: Price Cuts And AI Deals Will Test Balanced Risk Reward
Analysts have reduced their price targets on Cerence by $3 and $1 in recent research updates. These changes reflect adjustments to their models that incorporate slightly higher discount rates, modestly weaker revenue trends, and a small increase in expected profit margins and future P/E assumptions.Recent updates
CRNC: Profit Margin Gains And AI Partnerships Will Support Future Upside Potential
Analysts have lowered the price target on Cerence from $16.00 to $12.00 as they incorporate updated revenue expectations, higher projected profit margins, and a reduced assumed future P/E multiple. Analyst Commentary Recent Street research on Cerence presents a mix of caution around valuation and optimism about execution, with bullish analysts highlighting potential upside drivers even as some targets are reset.CRNC: Future Upside Will Depend On Executing New AI Voice Partnerships
The analyst price target for Cerence has moved from $10.00 to $10.25, with analysts pointing to a mix of fresh bullish coverage and recent target reductions as they reassess fair value, risk, and earnings potential. Analyst Commentary Bullish Takeaways Bullish analysts initiating coverage highlight what they see as upside to fair value, which helps explain why the overall target level has not moved far from the updated US$10.25 mark despite recent reductions from other firms.CRNC: AI Partnerships And Long Term Margins Will Support Upside Potential
Analysts have trimmed their price targets on Cerence by a few dollars, with cuts such as $3 and $1 reflecting updated views on its earnings power, discount rate, and long term margin profile. Analyst Commentary Recent research updates point to a more cautious tone around Cerence, with price target cuts of $3 and $1 signaling that some expectations for earnings power and profitability are being reset.CRNC: Future Upside Will Rely On Clearer AI Revenue Visibility
Our updated narrative on Cerence reflects a lower analyst price target, with fair value moving from $12.50 to $10.00 as analysts incorporate reduced revenue growth expectations, a slightly higher discount rate, a modestly higher profit margin outlook, and a lower assumed future P/E. Analyst Commentary Recent Street research on Cerence points to a more cautious stance, with multiple firms trimming price targets and aligning closer to the revised fair value of $10.00.CRNC: Price Cuts And AI Deals Will Test Balanced Risk Reward
Analysts have reduced their price targets on Cerence by $3 and $1 in recent research updates. These changes reflect adjustments to their models that incorporate slightly higher discount rates, modestly weaker revenue trends, and a small increase in expected profit margins and future P/E assumptions.Cerence Sees Initial Wins With xUI Platform But I'm Skeptical Of Durability (Downgrade)
Feb 23CRNC: Cautious Price Reset Balances AI Execution Risks And Free Cash Flow Progress
Narrative Update: Cerence Analyst Price Target Shift Analysts have trimmed their fair value estimate for Cerence from $10.00 to $8.00, reflecting recent price target cuts alongside calls for clearer proof of AI traction and more sustained core business acceleration, despite prior commentary on solid quarterly results and free cash flow generation. Analyst Commentary Recent research updates on Cerence highlight a clear shift toward more cautious positioning, with some firms cutting price targets and others holding back from taking a more positive stance until they see stronger execution in key growth areas such as AI powered in car experiences.Cerence Inc.'s (NASDAQ:CRNC) 37% Dip In Price Shows Sentiment Is Matching Revenues
Feb 09
Cerence (NASDAQ:CRNC) Has More To Do To Multiply In Value Going Forward
Feb 04CRNC: Future Upside Will Depend On Clearer Evidence Of AI Traction
Narrative Update on Cerence Analysts have nudged their price expectations for Cerence higher, with targets moving from about $10 to around $11, supported by a solid quarter, free cash flow generation, an improved balance sheet, and early signs of traction in core and AI related offerings, while still looking for clearer proof of sustained core business acceleration. Analyst Commentary Recent research takes a balanced view on Cerence, with some analysts encouraged by execution and valuation, while others are looking for clearer proof that core growth and new AI offerings can support a stronger long term story.CRNC: AI Execution And Core Business Evidence Will Shape Future Upside
Analysts have nudged their price target for Cerence higher, with recent moves from $10 to $11, alongside a fair value view around $12.50, reflecting solid quarterly results, improved free cash flow and balance sheet, and cautious optimism around future AI traction and core-business acceleration. Analyst Commentary Bullish Takeaways Bullish analysts highlight that recent results were solid, with revenue and EBITDA coming in ahead of expectations, which they view as supportive of current valuation levels.CRNC: AI Execution And Automotive Deals Will Shape Balanced Future Upside
Narrative Update Analysts have nudged Cerence's price target modestly higher to about $11, reflecting solid quarterly execution and improving free cash flow and guidance, while still awaiting clearer evidence of sustained AI driven growth in the core business. Analyst Commentary Street research remains cautiously balanced on Cerence, with analysts recognizing improving execution and cash generation but looking for clearer proof that AI investments will translate into durable, above market growth in the core automotive software franchise.CRNC: AI Traction And Core Auto Software Progress Will Shape Future Upside Potential
Analysts have nudged their price target on Cerence modestly higher, to about $11 from roughly $10, reflecting a solid quarter, improved balance sheet, and constructive core growth and pricing trends, even as they wait for clearer evidence of durable AI and core-business acceleration. Analyst Commentary Analysts remain divided on the near term risk reward profile for Cerence, balancing improved fundamentals and valuation support against ongoing execution and growth uncertainties.CRNC: AI Expansion Will Drive Improved Margins And Long-Term Core Business Strength
Analysts have raised their price target for Cerence to $12.50 from $11.75. This reflects the company’s solid quarterly results and improved profit margins.Revenues Working Against Cerence Inc.'s (NASDAQ:CRNC) Share Price Following 33% Dive
Nov 20Estimating The Fair Value Of Cerence Inc. (NASDAQ:CRNC)
Nov 05We Think Cerence (NASDAQ:CRNC) Is Taking Some Risk With Its Debt
Oct 03Cerence Inc. (NASDAQ:CRNC) Shares Fly 36% But Investors Aren't Buying For Growth
Oct 03Here's What Analysts Are Forecasting For Cerence Inc. (NASDAQ:CRNC) After Its Third-Quarter Results
Aug 09The Market Doesn't Like What It Sees From Cerence Inc.'s (NASDAQ:CRNC) Revenues Yet As Shares Tumble 26%
Aug 04Cerence (NASDAQ:CRNC) May Have Issues Allocating Its Capital
Jul 15Cerence Inc. (NASDAQ:CRNC) Shares Fly 40% But Investors Aren't Buying For Growth
May 04
Next-Gen Automotive Product Will Deepen AI Partnerships And OEM Ties
Strategic partnerships with AI leaders and new design contracts enhance performance, expand revenue growth, and strengthen competitive position.Cerence Inc.'s (NASDAQ:CRNC) 29% Dip In Price Shows Sentiment Is Matching Revenues
Mar 09Cerence Gets Strong Buy From Quant System, But Be Wary Of Tariffs
Feb 28Is Cerence (NASDAQ:CRNC) A Risky Investment?
Feb 10Cerence: Making Tough Calls Brings In The Money
Jan 27Cerence: Navigating AI Innovation In A Challenging Automotive Landscape
Jan 20Cerence: Don't Get Lost In The AI Hype--The Ground Reality Is Underwhelming
Jan 13Cerence's Nvidia Partnership Is Big - An Industry Peer Shows Proof
Jan 06There's No Escaping Cerence Inc.'s (NASDAQ:CRNC) Muted Revenues Despite A 133% Share Price Rise
Jan 06A Look At The Intrinsic Value Of Cerence Inc. (NASDAQ:CRNC)
Jan 05Cerence Stock: Persistent Risks Remain Despite Positive Q4 Earnings Results
Nov 22Cerence Inc.'s (NASDAQ:CRNC) Price Is Right But Growth Is Lacking After Shares Rocket 105%
Nov 22These 4 Measures Indicate That Cerence (NASDAQ:CRNC) Is Using Debt Extensively
Nov 12Investors Will Want Cerence's (NASDAQ:CRNC) Growth In ROCE To Persist
Oct 17Cerence Inc. (NASDAQ:CRNC) Looks Inexpensive After Falling 31% But Perhaps Not Attractive Enough
Sep 21Does Cerence (NASDAQ:CRNC) Have A Healthy Balance Sheet?
Aug 05Shareholder Returns
| CRNC | US Software | US Market | |
|---|---|---|---|
| 7D | 10.6% | -2.6% | 0.6% |
| 1Y | 0.2% | -9.8% | 28.7% |
Return vs Industry: CRNC exceeded the US Software industry which returned -9.8% over the past year.
Return vs Market: CRNC underperformed the US Market which returned 28.7% over the past year.
Price Volatility
| CRNC volatility | |
|---|---|
| CRNC Average Weekly Movement | 11.8% |
| Software Industry Average Movement | 10.1% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.2% |
| 10% least volatile stocks in US Market | 3.3% |
Stable Share Price: CRNC's share price has been volatile over the past 3 months compared to the US market.
Volatility Over Time: CRNC's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2020 | 1,300 | Brian Krzanich | www.cerence.com |
Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant, and professional services. It also provides conversational and generative artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic tuning.
Cerence Inc. Fundamentals Summary
| CRNC fundamental statistics | |
|---|---|
| Market cap | US$409.66m |
| Earnings (TTM) | US$335.00k |
| Revenue (TTM) | US$315.96m |
1,299x
P/E Ratio1.4x
P/S RatioIs CRNC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRNC income statement (TTM) | |
|---|---|
| Revenue | US$315.96m |
| Cost of Revenue | US$66.55m |
| Gross Profit | US$249.41m |
| Other Expenses | US$249.08m |
| Earnings | US$335.00k |
Last Reported Earnings
Dec 31, 2025
Next Earnings Date
May 07, 2026
| Earnings per share (EPS) | 0.0074 |
| Gross Margin | 78.94% |
| Net Profit Margin | 0.11% |
| Debt/Equity Ratio | 114.3% |
How did CRNC perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/01 21:26 |
| End of Day Share Price | 2026/05/01 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/09/30 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Cerence Inc. is covered by 10 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Michael Filatov | Berenberg |
| Thomas Blakey | Cantor Fitzgerald & Co. |
| Jeffrey Van Rhee | Craig-Hallum Capital Group LLC |