Ceva (NASDAQ:CEVA) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Ceva (NASDAQ:CEVA) issued its quarterly earnings results on Monday. The semiconductor company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.02, Briefing.com reports. The firm had revenue of $27.02 million for the quarter, compared to analysts’ expectations of $26.12 million. Ceva had a negative return on equity of 3.15% and a negative net margin of 9.71%.The firm’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.06 EPS.

Here are the key takeaways from Ceva’s conference call:

• CEVA reported a strong start to 2026 with revenues up 11% YoY to $27.0M and licensing revenue of $17.8M (its strongest licensing quarter in 3 years), and it raised its full‑year outlook to the high end of the prior 8%–12% growth range while forecasting a 40%–50% increase in non‑GAAP operating margins and net income.
• The company won strategic full‑stack deals — notably a Bluetooth HDT (RF + modem + software) license with a leading U.S. semiconductor customer and expanded baseband engagements for NTN (satellite 5G) and UWB — signaling deeper, higher‑value per‑design engagements and greater long‑term royalty potential.
• AI traction accelerated: AI accounted for >20% of licensing revenue this quarter, CEVA’s NeuPro‑Nano won a leading award, and its AI DSP/accelerator is now in production on the Renesas R‑Car V4H used in the 2026 Toyota RAV4, opening the door to meaningful automotive royalty streams.
• Royalty trends were mixed — total royalties were flat YoY while non‑mobile royalties rose 8% and Wi‑Fi shipments hit a record 91M units (+158% YoY), but smartphone royalties were soft due to seasonal/memory and inventory dynamics that management called largely timing‑related.
• Financial position: GAAP results showed an operating and net loss, but non‑GAAP net income was $1.1M, CEVA ended the quarter with about $260M in cash and equivalents, and guided Q2 revenue of $26M–$30M with ~87% GAAP gross margin.

Ceva Stock Performance

CEVA opened at $36.63 on Tuesday. The company has a 50-day moving average of $22.48 and a 200-day moving average of $22.66. Ceva has a 1-year low of $17.02 and a 1-year high of $37.07. The company has a market capitalization of $1.02 billion, a P/E ratio of -84.79 and a beta of 1.94.

Wall Street Analyst Weigh In

Several brokerages have issued reports on CEVA. Stifel Nicolaus set a $42.00 price objective on shares of Ceva in a research note on Tuesday. JPMorgan Chase & Co. started coverage on Ceva in a research note on Friday. They issued a “neutral” rating and a $30.00 price target on the stock. Oppenheimer reissued an “outperform” rating on shares of Ceva in a report on Tuesday. Roth Mkm reiterated a “buy” rating and set a $40.00 price target on shares of Ceva in a research report on Monday. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $40.00 target price on shares of Ceva in a research report on Thursday, March 12th. Eight research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $34.33.

Ceva News Summary

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Ceva reported Q1 EPS of $0.04, above the $0.02 estimate, and revenue of $27.02 million, also ahead of expectations, signaling better-than-expected demand for its silicon IP and licensing business. Ceva, Inc. Announces First Quarter 2026 Financial Results
• Positive Sentiment: TD Cowen analyst Joshua Buchalter reiterated a Buy rating and raised his price target sharply from $24 to $45, citing strong AI licensing momentum and automotive wins, which could help reinforce bullish sentiment on CEVA. Buchalter Doubles Down on CEVA: Strong AI Licensing Momentum, Automotive Wins Drive Buy Rating and Price Target Hike from $24 to $45
• Positive Sentiment: Ceva also announced a major Bluetooth HDT and integrated RF design win with a leading U.S. semiconductor company, validating its push toward full-stack wireless solutions and potentially improving future licensing revenue. Ceva Advances Full-Stack Wireless Vision with Next Generation Bluetooth High Data Throughput and Integrated RF Design Win
• Neutral Sentiment: The company’s earnings call transcript may provide more detail on margins, guidance, and customer demand trends, but it is mainly a source of follow-up color rather than a new catalyst on its own. CEVA, Inc. (CEVA) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat, some trading commentary noted the stock reversed lower after initially moving higher, suggesting investors may be taking profits or focusing on ongoing profitability challenges. Ceva Stock Turns Lower Despite Q1 Double Beat

Hedge Funds Weigh In On Ceva

A number of institutional investors have recently modified their holdings of the stock. Centaurus Financial Inc. increased its holdings in shares of Ceva by 2.6% in the third quarter. Centaurus Financial Inc. now owns 21,905 shares of the semiconductor company’s stock valued at $579,000 after purchasing an additional 550 shares in the last quarter. Intech Investment Management LLC lifted its stake in shares of Ceva by 15.4% during the fourth quarter. Intech Investment Management LLC now owns 9,415 shares of the semiconductor company’s stock valued at $203,000 after acquiring an additional 1,258 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in Ceva by 10.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,680 shares of the semiconductor company’s stock valued at $295,000 after acquiring an additional 1,270 shares during the last quarter. &PARTNERS increased its position in Ceva by 12.6% in the fourth quarter. &PARTNERS now owns 12,499 shares of the semiconductor company’s stock worth $270,000 after purchasing an additional 1,394 shares during the period. Finally, American Century Companies Inc. increased its position in Ceva by 3.1% in the second quarter. American Century Companies Inc. now owns 53,354 shares of the semiconductor company’s stock worth $1,173,000 after purchasing an additional 1,619 shares during the period. 85.37% of the stock is owned by institutional investors.

Ceva Company Profile

Ceva, Inc (NASDAQ: CEVA) is a leading licensor of signal processing IP cores and platforms that enable intelligent, connected devices. The company designs a broad portfolio of digital signal processing (DSP) and AI processors, software development toolkits and reference frameworks for applications ranging from 5G wireless communications and Bluetooth connectivity to audio, computer vision, sensor fusion and edge AI. Its solutions target a variety of end markets including smartphones, automotive, IoT devices, smart home, industrial automation and wearable electronics.

Founded in 1999 as a spin-off from DSP Group, Ceva has built its reputation on delivering modular, power-efficient IP that can be customized to meet stringent performance, area and power requirements.