Cerence Reports Q1 Revenue of $115.1M, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy CRNC?
Reports Q1 revenue $115.1M, consensus $114.51M. "We delivered a strong start to fiscal 2026, with solid revenue performance, adjusted EBITDA above the high end of guidance, and a quarterly record for free cash flow," said CEO Brian Krzanich. "Customer momentum around Cerence xUI continues to accelerate: we now have five programs in progress with major automakers, and we received incredible customer feedback from our demos at CES 2026, where we showcased next-generation, LLM-powered experiences and new AI agents that serve users throughout their vehicle purchase and ownership journey. At the same time, in Q1, we strengthened our balance sheet through disciplined cost management and debt reduction, while continuing to invest in innovation to support long-term growth. With a clear strategy focused on advancing our technology, expanding our customer footprint, and driving profitable growth, we are energized by the opportunities ahead and believe that we are well positioned to execute through the remainder of fiscal 2026 and beyond. With that, we have reaffirmed our guidance for the full fiscal year."
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Analyst Views on CRNC
Wall Street analysts forecast CRNC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRNC is 10.50 USD with a low forecast of 10.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 7.650
Low
10.00
Averages
10.50
High
11.00
Current: 7.650
Low
10.00
Averages
10.50
High
11.00
About CRNC
Cerence Inc. is a provider of artificial intelligence (AI)-powered assistants for connected and autonomous vehicles. The Company builds AI-powered virtual assistants for the mobility/transportation market. Its software platform is used to build virtual assistants that can communicate, find information and take action across an expanding variety of categories. Its software platform has a hybrid architecture combining edge software components with cloud-connected components. Its Edge software components are installed on a vehicle’s head unit and can operate without access to external networks and information. Its Cloud-connected components comprise certain speech and natural language understanding-related technologies, AI-enabled personalization and context-based response frameworks, and a content integration platform. Virtual assistants built with its software platform address user requests across various categories, such as navigation, control, media, communication, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record of Beating Estimates: Over the past two years, Cerence has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating the company's exceptional capabilities in market analysis and execution.
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