Cerence

CRNC · NASDAQ

$8.88−$0.14 (−1.55%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $9.02

CRNC analyst rating

HoldConsensus of 3 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy1
Hold2
Underperform0
Sell0

12-month price target · 6 analysts

Average $10.97 (+23.5% upside)

Low: $9.09
Now: $8.88
High: $12.60

Upgrades and downgrades

The latest rating actions, newest first

CRNC analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Goldman Sachs	May 8, 2026	Maintains	Neutral	$8.00 → $9.00	60%
Cantor Fitzgerald	Apr 2, 2026	Initiates	Overweight	$11.00	55%
Goldman Sachs	Feb 9, 2026	Maintains	Neutral	$11.00 → $8.00	60%
TD Cowen	Feb 5, 2026	Maintains	Hold	$13.00 → $12.00	42%
Goldman Sachs	Nov 20, 2025	Maintains	Neutral	$10.00 → $11.00	60%

The case for and against

Updated Jul 31, 2025

Bull case

Cerence Inc reported a revenue of $50.9 million, surpassing both its own estimates and those of the market, despite a decline year-over-year. The company showed notable improvement in its Professional Services segment, achieving a margin of 32.7%, which exceeded expectations and indicates enhanced operational efficiency. Furthermore, multiple new design wins and the adoption of generative AI technologies are expected to drive growth in per-unit pricing and operating efficiency, contributing to a favorable long-term financial outlook.

Bear case

Cerence Inc. may face significant revenue pressures due to a potential global recession and a subsequent decline in automobile sales, which could lead consumers to postpone new car purchases or opt for lower-end vehicles lacking advanced AI capabilities. The company's reported non-GAAP EPS of ($0.03) was better than expected but still highlights ongoing profitability challenges, particularly given that convertible notes are trading at low values with minimal interest rates. Additionally, if a substantial portion of vehicle units is removed from the market, Cerence could miss out on approximately $40 million in anticipated revenue, exacerbating existing operational difficulties amidst rising tariffs that may impact unit deliveries across the automotive sector.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.