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 | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
No risks detected for CRNC from our risk checks.
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
Cerence Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$12.74 |
| 52 Week High | US$13.74 |
| 52 Week Low | US$5.85 |
| Beta | 2.89 |
| 1 Month Change | 31.75% |
| 3 Month Change | 69.41% |
| 1 Year Change | 51.49% |
| 3 Year Change | -55.14% |
| 5 Year Change | -88.77% |
| Change since IPO | -17.00% |
Recent News & Updates
Narrative Update • May 18
CRNC: AI Auto Assistant Partnerships And Margin Execution Will Shape Future Upside
Analysts have raised their fair value estimate for Cerence from $8.00 to $9.00, citing updated assumptions on revenue trends, margins, discount rate, and future P/E following recent bullish Street research coverage. Analyst Commentary While the latest fair value update reflects more constructive assumptions, several bearish analysts still flag reasons to be cautious on Cerence at current levels.
Narrative Update • Apr 23
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.
Narrative Update • Apr 09
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.Narrative Update • Mar 26
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.Recent updates
Narrative Update • May 18
CRNC: AI Auto Assistant Partnerships And Margin Execution Will Shape Future Upside
Analysts have raised their fair value estimate for Cerence from $8.00 to $9.00, citing updated assumptions on revenue trends, margins, discount rate, and future P/E following recent bullish Street research coverage. Analyst Commentary While the latest fair value update reflects more constructive assumptions, several bearish analysts still flag reasons to be cautious on Cerence at current levels.Narrative Update • Apr 23
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.Narrative Update • Apr 09
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.Narrative Update • Mar 26
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.Narrative Update • Mar 11
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.Narrative Update • Feb 25
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.Seeking Alpha • Feb 23
Cerence Sees Initial Wins With xUI Platform But I'm Skeptical Of Durability (Downgrade)
Summary My outlook on Cerence is downgraded to a 'Sell' due to concerns over its ability to compete durably and profitably against major technology players in automotive AI. The recent revenue surge was driven by a one-time $49.5 million Samsung settlement, not sustainable core growth, with forward revenue growth estimated at -4.8%. The xUI platform has secured five significant new clients at higher price points, but competitive threats from hyperscalers and replicable core features remain acute. CRNC's heavy R&D burden and exposure to rapid AI advancements threaten margins and long-term differentiation, despite recent operational improvements and strong free cash flow. Read the full article on Seeking AlphaNarrative Update • Feb 10
CRNC: 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.Analysis Article • Feb 09
Cerence Inc.'s (NASDAQ:CRNC) 37% Dip In Price Shows Sentiment Is Matching Revenues
Cerence Inc. ( NASDAQ:CRNC ) shareholders won't be pleased to see that the share price has had a very rough month...Analysis Article • Feb 04
Cerence (NASDAQ:CRNC) Has More To Do To Multiply In Value Going Forward
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...Narrative Update • Jan 27
CRNC: 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.Narrative Update • Jan 12
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.Narrative Update • Dec 25
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.Narrative Update • Dec 11
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.Narrative Update • Nov 27
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.Analysis Article • Nov 20
Revenues Working Against Cerence Inc.'s (NASDAQ:CRNC) Share Price Following 33% Dive
Cerence Inc. ( NASDAQ:CRNC ) shareholders that were waiting for something to happen have been dealt a blow with a 33...Analysis Article • Nov 05
Estimating The Fair Value Of Cerence Inc. (NASDAQ:CRNC)
Key Insights The projected fair value for Cerence is US$9.34 based on 2 Stage Free Cash Flow to Equity Cerence's...Analysis Article • Oct 03
We Think Cerence (NASDAQ:CRNC) Is Taking Some Risk With Its Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...Analysis Article • Oct 03
Cerence Inc. (NASDAQ:CRNC) Shares Fly 36% But Investors Aren't Buying For Growth
Cerence Inc. ( NASDAQ:CRNC ) shareholders would be excited to see that the share price has had a great month, posting a...Analysis Article • Aug 09
Here's What Analysts Are Forecasting For Cerence Inc. (NASDAQ:CRNC) After Its Third-Quarter Results
NasdaqGS:CRNC 1 Year Share Price vs Fair Value Explore Cerence's Fair Values from the Community and select yours...Analysis Article • Aug 04
The Market Doesn't Like What It Sees From Cerence Inc.'s (NASDAQ:CRNC) Revenues Yet As Shares Tumble 26%
Cerence Inc. ( NASDAQ:CRNC ) shares have had a horrible month, losing 26% after a relatively good period beforehand...Analysis Article • Jul 15
Cerence (NASDAQ:CRNC) May Have Issues Allocating Its Capital
To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...Analysis Article • May 04
Cerence Inc. (NASDAQ:CRNC) Shares Fly 40% But Investors Aren't Buying For Growth
Cerence Inc. ( NASDAQ:CRNC ) shareholders are no doubt pleased to see that the share price has bounced 40% in the last...
New Narrative • Apr 25
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.Analysis Article • Mar 09
Cerence Inc.'s (NASDAQ:CRNC) 29% Dip In Price Shows Sentiment Is Matching Revenues
Cerence Inc. ( NASDAQ:CRNC ) shares have retraced a considerable 29% in the last month, reversing a fair amount of...Seeking Alpha • Feb 28
Cerence Gets Strong Buy From Quant System, But Be Wary Of Tariffs
Summary Despite Quant's Strong Buy rating, I rate Cerence Inc. as a Hold due to potential tariffs and concerns over revenue and earnings. Cerence, spun off from Nuance Communications in 2019, holds a 51% market share in AI-powered virtual assistants for automobiles. Cerence faces competition from tech giants like Amazon and Apple, as well as from smaller firms like SoundHound, but boasts industry-leading speech technology and custom vehicle integration. Read the full article on Seeking AlphaAnalysis Article • Feb 10
Is Cerence (NASDAQ:CRNC) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Seeking Alpha • Jan 27
Cerence: Making Tough Calls Brings In The Money
Summary I initially saw Cerence as a high-reward turnaround play, but its valuation now feels stretched. The company’s focus on restructuring and cost-cutting is positive, but it still needs to prove it can sustain growth. While its AI narrative could spark renewed investor interest, betting on a meme-like rally isn’t my strategy. At 20x fiscal 2026 free cash flow, with much of that going to debt reduction, the upside feels limited. Read the full article on Seeking AlphaSeeking Alpha • Jan 20
Cerence: Navigating AI Innovation In A Challenging Automotive Landscape
Summary Cerence, Inc. holds a 52% market share in automotive virtual assistants but faces intense competition and technology uncertainties. Financial performance shows mixed results with recent growth but significant operating expenses and margin pressures from automakers. Valuation suggests a narrow margin of safety, with a $14 per share estimate, only 9.5% above the current stock price. High technology and market uncertainties make Cerence a hold, with a 46.6% probability of achieving a value higher than the current stock price. Read the full article on Seeking AlphaSeeking Alpha • Jan 13
Cerence: Don't Get Lost In The AI Hype--The Ground Reality Is Underwhelming
Summary Cerence Inc. is a $670 million AI company focused on automotive voice assistance, but its growth potential seems overstated. Despite the recent stock surge due to the Nvidia partnership, I believe Cerence's financial performance is weak, with declining margins, mounting losses, and a highly leveraged balance sheet. The company's valuation is overinflated, with a forward PE ratio over 265, and insider selling further indicates overvaluation and lack of confidence. I rate CRNC as a sell due to its underwhelming growth potential, financial instability, and lack of a strong competitive edge in the AI automotive space. Read the full article on Seeking AlphaSeeking Alpha • Jan 06
Cerence's Nvidia Partnership Is Big - An Industry Peer Shows Proof
Summary Cerence Inc.'s partnership with Nvidia enhances its AI capabilities and market position, but prudence is advised until the stock pulls back. Industry peer, SoundHound AI's successful Nvidia partnership sets a precedent for Cerence, boosting optimism but requiring time to reflect in Cerence's metrics. Cerence's transition to a subscription-based model and expanded customer base shows potential, but legacy issues and debt remain challenges. CES 2025 announcements may further impact Cerence's stock in the short term, but a Neutral rating is recommended as growth will take time to materialize. Read the full article on Seeking AlphaAnalysis Article • Jan 06
There's No Escaping Cerence Inc.'s (NASDAQ:CRNC) Muted Revenues Despite A 133% Share Price Rise
Cerence Inc. ( NASDAQ:CRNC ) shares have continued their recent momentum with a 133% gain in the last month alone. The...Analysis Article • Jan 05
A Look At The Intrinsic Value Of Cerence Inc. (NASDAQ:CRNC)
Key Insights Using the 2 Stage Free Cash Flow to Equity, Cerence fair value estimate is US$22.53 Current share price of...Seeking Alpha • Nov 22
Cerence Stock: Persistent Risks Remain Despite Positive Q4 Earnings Results
Summary Cerence shares have more than doubled since its Q4 earnings were released. While growth is expected to remain muted next year, margins are expected to be solid, coupled with strong FCF generation. Cerence’s balance sheet remains vulnerable, with $90 million in debt due in the coming year. At the current valuation of 7.3 times FCF, I maintain my Hold rating on CRNC stock. Read the full article on Seeking AlphaAnalysis Article • Nov 22
Cerence Inc.'s (NASDAQ:CRNC) Price Is Right But Growth Is Lacking After Shares Rocket 105%
Cerence Inc. ( NASDAQ:CRNC ) shares have had a really impressive month, gaining 105% after a shaky period beforehand...Analysis Article • Nov 12
These 4 Measures Indicate That Cerence (NASDAQ:CRNC) Is Using Debt Extensively
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Analysis Article • Oct 17
Investors Will Want Cerence's (NASDAQ:CRNC) Growth In ROCE To Persist
What are the early trends we should look for to identify a stock that could multiply in value over the long term...Analysis Article • Sep 21
Cerence Inc. (NASDAQ:CRNC) Looks Inexpensive After Falling 31% But Perhaps Not Attractive Enough
Cerence Inc. ( NASDAQ:CRNC ) shareholders won't be pleased to see that the share price has had a very rough month...Shareholder Returns
| CRNC | US Software | US Market | |
|---|---|---|---|
| 7D | 16.0% | 8.6% | 1.6% |
| 1Y | 51.5% | -1.1% | 28.2% |
Return vs Industry: CRNC exceeded the US Software industry which returned -1.1% over the past year.
Return vs Market: CRNC exceeded the US Market which returned 28.2% over the past year.
Price Volatility
| CRNC volatility | |
|---|---|
| CRNC Average Weekly Movement | 9.6% |
| Software Industry Average Movement | 9.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.0% |
Stable Share Price: CRNC has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: CRNC's weekly volatility (10%) has been stable over the past year.
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$581.12m |
| Earnings (TTM) | -US$19.65m |
| Revenue (TTM) | US$302.14m |
1.9x
P/S Ratio-29.3x
P/E RatioIs CRNC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRNC income statement (TTM) | |
|---|---|
| Revenue | US$302.14m |
| Cost of Revenue | US$65.61m |
| Gross Profit | US$236.53m |
| Other Expenses | US$256.18m |
| Earnings | -US$19.65m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.43 |
| Gross Margin | 78.28% |
| Net Profit Margin | -6.50% |
| Debt/Equity Ratio | 108.9% |
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 | 2026/06/01 22:52 |
| End of Day Share Price | 2026/06/01 00:00 |
| Earnings | 2026/03/31 |
| 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 |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| 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 |