Cerence Q1 revenue slightly beats estimates

Cerence

04/02/2026 21:20

Overview

Conversational AI firm's fiscal Q1 revenue slightly beat analyst expectations

Company achieved record free cash flow of $35.6 mln in fiscal Q1

Outlook

Cerence expects Q2 revenue between $58 mln and $62 mln

Company projects Q2 gross margins between 71% and 72%

Cerence reaffirms FY2026 revenue guidance of $300 mln to $320 mln

Result Drivers

PATENT LICENSE REVENUE - Q1 revenue included a $49.5 mln payment from a patent license agreement with Samsung

CUSTOMER MOMENTUM - Cerence xUI gained traction with five automaker programs and positive reception at CES 2026

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$115.10 mln
$114.48 mln (4 Analysts)
Q1 EPS
-$0.12
Q1 Net Income
-$5.20 mln
Q1 Gross Margin
86.3%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Cerence Inc is $11.00, about 6.2% above its February 3 closing price of $10.36

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX51Wxq

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)