Cerence sees FY loss/share 2.0c to EPS 6.0c

Cerence Inc. (NASDAQ: CRNC) reported its second quarter fiscal year 2026 results on May 7, 2026, and provided updated guidance for the remainder of the fiscal year. The company’s full-year FY2026 outlook includes a projected net (loss) income range of $(3) million to $7 million, translating to a diluted GAAP EPS range of $(0.07) to $0.15. This represents a narrowing of the range with the midpoint maintained.

For the third quarter of FY2026, Cerence expects a net loss or income range of $1 million to $3 million, or a diluted EPS range of $(0.02) to $0.07. These projections reflect variability in fixed license revenue.

The company’s updated guidance reflects improved visibility and performance in its core business, driven by growth in recurring Connected Services and steady Variable License revenue. Despite quarter-to-quarter variability in fixed license timing, Cerence has raised the midpoints of its full-year revenue, Adjusted EBITDA, and free cash flow guidance.

Cerence’s Q2FY26 results showed $64.2 million in revenue and $7.2 million in Adjusted EBITDA, both exceeding the high end of guidance. The company also generated $13.6 million in free cash flow and maintained a 50% penetration rate in worldwide auto production with its technology.

Looking ahead, Cerence continues to focus on disciplined execution, strong cash generation, and profitable growth, with expanding its AI-powered solutions in the automotive and adjacent markets.