Cerence Inc. (CRNC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Cerence Inc. (CRNC) trades at $11.23 with AI Score 18/100 (Grade F). Cerence Inc. provides AI-powered virtual assistants for the global mobility market. Market cap: $507.25M, Sector: Technology.
Price live · AI analysis from May 10, 2026CRNC stock analysis for 2026: Analysts have set a consensus price target of $8.00 for Cerence Inc., suggesting 28.7% downside from the current price of $11.23. The AI MoonshotScore is 18/100, indicating a strong bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
CRNC: 4/7 perspectives are bearish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Cerence Inc. (CRNC) Technology Profile & Competitive Position
Cerence Inc. delivers AI-driven virtual assistant technology for the automotive industry, providing speech recognition, natural language understanding, and other advanced features. With a focus on in-car experiences, Cerence faces competition in the evolving market for connected vehicle solutions and AI-powered interfaces.
What Is the Investment Thesis for CRNC?
Cerence Inc. presents a compelling investment case based on its leadership in the AI-powered virtual assistant market for the automotive industry. The increasing demand for connected car technologies and advanced driver-assistance systems (ADAS) serves as a significant growth catalyst. With a gross margin of 78.3%, Cerence demonstrates strong profitability potential. However, the company's negative profit margin of -6.5% indicates areas for improvement in operational efficiency. A beta of 2.73 suggests high volatility relative to the market. Key risks include intense competition and the potential for technological disruption. Successful execution of strategic partnerships and continued innovation in AI solutions are crucial for sustained growth and value creation.
Based on FMP financials and quantitative analysis
CRNC Key Highlights
- Cerence Inc. operates in the growing market for AI-powered virtual assistants in the automotive industry.
- The company's gross margin of 78.3% reflects strong pricing power and efficient cost management.
- Cerence's market capitalization is $0.35 billion as of 2026-05-10.
- The company employs 1400 individuals, indicating a significant operational scale.
- Cerence's beta of 2.73 suggests higher volatility compared to the broader market.
Who Are CRNC's Competitors?
CRNC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GOOG Alphabet Inc. | $365.24 | +2.54% | $4.46T | 98 |
| AMZN Amazon.com, Inc. | $244.70 | +0.84% | $2.63T | 69 |
| MSFT Microsoft Corporation | $386.20 | -1.10% | $2.87T | 81 |
| NOW ServiceNow, Inc. | $108.69 | +2.23% | $112.09B | 71 |
| RSASF RESAAS Services Inc. | $0.30 | +2.76% | $25.04M | 69 |
| PDFS PDF Solutions, Inc. | $59.18 | -11.51% | $2.44B | 68 |
| CSAI Cloudastructure Inc. | $0.36 | +0.47% | $6.84M | 68 |
| USER UserTesting, Inc. | $7.50 | -0.13% | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CRNC's Key Strengths?
- Leading provider of AI-powered virtual assistants for the automotive industry.
- Strong relationships with major automotive manufacturers.
- Proprietary technology and intellectual property.
- High gross margin.
What Are CRNC's Weaknesses?
- Negative profit margin.
- High beta indicating significant volatility.
- Dependence on the automotive industry.
- Relatively small market capitalization.
What Could Drive CRNC Stock Higher?
- New partnerships with automotive manufacturers to integrate Cerence's AI solutions into upcoming vehicle models.
- Increasing adoption of connected car technologies and advanced driver-assistance systems (ADAS).
- Expansion of Cerence's product portfolio to include new features and functionalities.
- Growing demand for AI-powered virtual assistants in the automotive industry.
What Are the Key Risks for CRNC?
- Financial-distress signal — its Altman Z-Score of -0.68 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-12.8%) — the business is not currently generating profit on shareholder capital.
- Rich valuation — a P/E of 1175.5 runs well above the Technology sector’s ~38x, leaving little room for a miss.
- Intense competition from established technology companies and emerging startups.
- Technological disruption and rapid innovation in the AI space.
- Economic downturns affecting the automotive industry.
- Changes in consumer preferences and adoption rates.
- The company's negative profit margin poses a risk to its long-term financial sustainability.
What Are the Growth Opportunities for CRNC?
- Expansion into Emerging Markets: Cerence can capitalize on the growing automotive market in emerging economies, particularly in Asia-Pacific and Latin America. These regions present significant opportunities for the adoption of connected car technologies and AI-powered virtual assistants. By tailoring its solutions to local languages and preferences, Cerence can gain a competitive edge and drive revenue growth. The market size for automotive AI in emerging markets is projected to reach $15 billion by 2030. Timeline: Ongoing.
- Strategic Partnerships with Automotive Manufacturers: Collaborating with leading automotive manufacturers to integrate Cerence's AI solutions into their vehicles can drive significant growth. These partnerships provide access to a large customer base and enable Cerence to showcase its technology on a global scale. By working closely with OEMs, Cerence can develop customized solutions that meet their specific needs and enhance the overall driving experience. The value of strategic partnerships in the automotive industry is estimated at $20 billion annually. Timeline: Ongoing.
- Development of Advanced Driver-Assistance Systems (ADAS): Integrating AI-powered virtual assistants with ADAS can enhance safety and convenience for drivers. Cerence can develop solutions that provide real-time alerts, adaptive cruise control, and automated parking assistance. By leveraging its expertise in speech recognition and natural language understanding, Cerence can create intuitive interfaces that improve the overall driving experience. The ADAS market is projected to reach $65 billion by 2028. Timeline: Ongoing.
- Enhancement of In-Car Entertainment and Connectivity: Cerence can expand its offerings to include advanced in-car entertainment and connectivity solutions. This includes integrating streaming services, social media platforms, and other digital content into the vehicle's infotainment system. By providing seamless access to entertainment and information, Cerence can enhance the overall driving experience and attract new customers. The market for in-car entertainment and connectivity is projected to reach $30 billion by 2027. Timeline: Ongoing.
- Monetization of Data and Analytics: Cerence can leverage the data generated by its AI-powered virtual assistants to provide valuable insights to automotive manufacturers and other stakeholders. This includes analyzing driver behavior, identifying trends, and personalizing the driving experience. By monetizing this data, Cerence can generate new revenue streams and strengthen its competitive position. The market for automotive data and analytics is projected to reach $25 billion by 2029. Timeline: Ongoing.
What Opportunities Does CRNC Have?
- Expansion into emerging markets.
- Strategic partnerships with automotive manufacturers.
- Development of advanced driver-assistance systems (ADAS).
- Monetization of data and analytics.
What Threats Does CRNC Face?
- Intense competition from established technology companies.
- Technological disruption and rapid innovation.
- Economic downturns affecting the automotive industry.
- Changes in consumer preferences and adoption rates.
What Are CRNC's Competitive Advantages?
- Proprietary Technology: Cerence's AI-powered virtual assistant technology is protected by patents and trade secrets.
- Established Customer Relationships: The company has long-standing relationships with leading automotive manufacturers.
- Data Network Effects: Cerence's AI models improve over time as they are trained on more data from its installed base of vehicles.
What Does CRNC Do?
Cerence Inc. is a global leader in creating AI-powered virtual assistants for the mobility market. Spun off from Nuance Communications in 2019, Cerence has quickly established itself as a key player in the automotive software space. The company's core offerings include edge software components, cloud-connected services, and related toolkits designed to enhance the in-car experience. These technologies enable voice-powered interactions, natural language understanding, and personalized assistance for drivers and passengers. Cerence's solutions are embedded in millions of vehicles worldwide, supporting a range of functions from navigation and entertainment to vehicle control and communication. Headquartered in Burlington, Massachusetts, Cerence serves automotive manufacturers and suppliers across the globe. The company's focus on innovation and strategic partnerships positions it to capitalize on the growing demand for connected car technologies and advanced driver-assistance systems (ADAS). Cerence's commitment to delivering intuitive and seamless in-car experiences drives its ongoing development of cutting-edge AI solutions for the automotive industry.
What Products and Services Does CRNC Offer?
- Develops AI-powered virtual assistants for the automotive industry.
- Provides speech recognition and natural language understanding technology.
- Offers edge software components for in-car systems.
- Delivers cloud-connected services for enhanced functionality.
- Provides toolkits and applications for automotive manufacturers.
- Offers virtual assistant coexistence and professional services.
- Enhances in-car experiences through voice-powered interactions.
How Does CRNC Make Money?
- Software Licensing: Cerence licenses its AI-powered virtual assistant software to automotive manufacturers.
- Cloud Services: The company generates revenue from cloud-based services that enhance the functionality of its software.
- Professional Services: Cerence provides professional services to help automotive manufacturers integrate and customize its solutions.
What Industry Does CRNC Operate In?
Cerence Inc. operates within the rapidly evolving automotive technology sector, driven by increasing demand for connected car features and advanced driver-assistance systems (ADAS). The market for AI-powered virtual assistants in vehicles is expanding, with consumers expecting seamless and intuitive in-car experiences. Competition is intense, with established players and emerging startups vying for market share. Cerence's focus on speech recognition, natural language understanding, and personalized assistance positions it to capitalize on these trends. The company's success depends on its ability to innovate, form strategic partnerships, and adapt to changing consumer preferences.
Who Are CRNC's Key Customers?
- Automotive Manufacturers: Cerence's primary customers are automotive manufacturers who integrate its AI solutions into their vehicles.
- Tier 1 Suppliers: The company also works with Tier 1 automotive suppliers who provide components and systems to OEMs.
- Mobility Service Providers: Cerence serves mobility service providers who offer ride-sharing and other transportation services.
Company Profile
Cerence Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Burlington, US. The company is led by CEO Brian Matthew Krzanich. CRNC has traded publicly since 2019.
Cerence Inc. Financial Trajectory
Cerence Inc. (CRNC) reported $64.2M in revenue for Q1 2026, a decline of 44.2% compared to the prior quarter. The company recorded net income of $1.7M, with diluted EPS of $0.04. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Technology. Across the four most recent quarters, CRNC averaged $-0.11 in diluted EPS.
How Cerence Inc. Is Valued
Cerence Inc. carries a market capitalization of $507.25M, placing it in the small-cap category. Relative to its peer group, CRNC's quantitative score of 18/100 is below the peer average of 78/100.
ROE -13%Key Financial Metrics
Return on equity for Cerence Inc. stands at -12.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -3.2%, showing how much profit it generates from its asset base. Its free cash flow yield is 16.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.90 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -4.4%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
Cerence Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.68 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Cerence Inc. revenue of about $315.6M for fiscal 2026, with EPS near $0.71. The estimate reflects 4 contributing analysts.
CRNC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Cerence's growth potential, indicating that executives believe in the company's future.
- Community sentiment has turned positive, with discussions highlighting Cerence's innovative voice recognition technology as a game-changer in the automotive sector.
- Cerence has secured new partnerships with major automotive manufacturers, enhancing its market position and visibility in a competitive landscape.
- The company's focus on expanding its product offerings aligns with the growing demand for advanced driver-assistance systems, positioning it well for future growth.
Bear Case
- Some analysts express concerns over Cerence's dependency on the automotive sector, which is subject to economic fluctuations and supply chain issues.
- Community sentiment also reflects skepticism regarding the pace of adoption of voice technology in vehicles, with some users questioning its practicality.
- Recent reports indicate increased competition in the voice recognition market, which could pressure Cerence's market share and profit margins.
- The company's recent earnings report showed mixed results, raising questions about its ability to sustain momentum in the face of evolving industry challenges.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $64M | $2M | $0.04 |
| Q4 2025 | $115M | -$5M | -$0.12 |
| Q3 2025 | $61M | -$13M | -$0.31 |
| Q2 2025 | $62M | -$3M | -$0.06 |
Based on FMP financials and quantitative analysis
CRNC Latest News
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Shares of software companies are trading lower amid overall market weakness as investors rotate out of growth stocks.
Benzinga · Jun 9, 2026
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Shares of software companies are trading lower amid valuation concerns after the sector's steep May rally. Also, questions may persist about the ability of legacy software firms to profitably integrate AI platforms.
Benzinga · Jun 3, 2026
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Shares of companies within the broader technology sector are trading higher as multiple catalysts maintain the rally, including U.S.-Iran negotiation optimism, Snowflake and Dell Q1 financial results, IBM's AI and quantum spending target and Anthropic's nearly $1 trillion valuation.
Benzinga · May 29, 2026
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Shares of software companies are trading higher as the industry continues to rally from multiple catalysts this week. The sector rallied in response to U.S.-Iran talks, Snowflake's Q1 results and possibly Dell's Q1 financial results, which included an increase in its FY27 AI server revenue guidance.
Benzinga · May 29, 2026
CRNC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CRNC.
Price Targets
Consensus target: $8.00
CRNC MoonshotScore
What does this score mean?
The MoonshotScore rates CRNC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Shares of software companies are trading lower amid overall market weakness as investors rotate out of growth stocks.
Shares of software companies are trading lower amid valuation concerns after the sector's steep May rally. Also, questions may persist about the ability of legacy software firms to profitably integrate AI platforms.
Shares of companies within the broader technology sector are trading higher as multiple catalysts maintain the rally, including U.S.-Iran negotiation optimism, Snowflake and Dell Q1 financial results, IBM's AI and quantum spending target and Anthropic's nearly $1 trillion valuation.
Shares of software companies are trading higher as the industry continues to rally from multiple catalysts this week. The sector rallied in response to U.S.-Iran talks, Snowflake's Q1 results and possibly Dell's Q1 financial results, which included an increase in its FY27 AI server revenue guidance.
Leadership: Brian Matthew Krzanich
CEO
Brian Krzanich is an experienced technology executive with a strong background in the semiconductor industry. Prior to joining Cerence, he served as the CEO of Intel Corporation from 2013 to 2018. During his tenure at Intel, Krzanich focused on expanding the company's presence in emerging markets and diversifying its product portfolio. He also held various leadership positions at Intel, including Chief Operating Officer and Senior Vice President. Krzanich holds a bachelor's degree in chemistry from San Jose State University.
Track Record: Since becoming CEO, Brian Krzanich has focused on solidifying Cerence's position as a leader in the automotive AI space. He has overseen strategic partnerships with key automotive manufacturers and driven innovation in the company's core technologies. Under his leadership, Cerence has continued to expand its global reach and enhance its product offerings. However, the company still faces challenges in achieving profitability and managing its operational costs.
CRNC Technology Stock FAQ
What does Cerence Inc. do?
Cerence Inc. specializes in providing AI-powered virtual assistants for the automotive industry. The company's core offerings include speech recognition, natural language understanding, and other advanced features that enhance the in-car experience. Cerence's solutions are embedded in millions of vehicles worldwide, supporting a range of functions from navigation and entertainment to vehicle control and communication. The company generates revenue through software licensing, cloud services, and professional services.
What do analysts say about CRNC stock?
Analyst coverage of Cerence Inc. is mixed, with some firms highlighting the company's growth potential in the connected car market, while others express concerns about its profitability and competitive landscape. Key valuation metrics include price-to-sales and price-to-book ratios, which are compared to industry averages. Growth considerations include the company's ability to innovate, form strategic partnerships, and expand its market share. Analyst ratings and price targets vary, reflecting differing opinions on the company's future prospects.
What are the main risks for CRNC?
Cerence Inc. faces several key risks, including intense competition from established technology companies and emerging startups, technological disruption and rapid innovation in the AI space, economic downturns affecting the automotive industry, and changes in consumer preferences and adoption rates. The company's negative profit margin also poses a risk to its long-term financial sustainability. Additionally, Cerence is dependent on the automotive industry, which is subject to cyclical fluctuations and regulatory changes.
What are the key factors to evaluate for CRNC?
Cerence Inc. (CRNC) holds an AI score of 18/100 (low). P/E: 1175.5x vs the S&P 500's ~20-25x. Analysts target $8.00 (-29%). Not financial advice.
How frequently does CRNC data refresh on this page?
CRNC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CRNC's recent stock price performance?
Cerence Inc. (CRNC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Leading provider of AI-powered virtual assistants for the automotive industry. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CRNC overvalued or undervalued right now?
Cerence Inc. (CRNC) trades at 1175.5x earnings. Analysts target $8.00 (-29%) — downside risk seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CRNC?
Before investing in Cerence Inc. (CRNC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Market projections are subject to change based on economic conditions and industry trends.