Ceva (NASDAQ:CEVA) Releases Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Ceva (NASDAQ:CEVA) announced its quarterly earnings results on Monday. The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.06), FiscalAI reports. Ceva had a negative net margin of 9.48% and a negative return on equity of 3.15%. The firm had revenue of $29.06 million for the quarter, compared to analyst estimates of $32.71 million. During the same period in the previous year, the firm posted $0.11 EPS. The company’s revenue was up 2.4% compared to the same quarter last year.

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

• CEVA forecast fourth-quarter revenue of $34 million to $38 million, about 24% sequential growth at the midpoint and potentially its highest quarterly revenue to date; management expects non-GAAP diluted EPS to more than double sequentially.
• AI licensing reached a quarterly record, contributing more than 35% of licensing and related revenue, and six of the quarter’s 10 new agreements were AI-related. CEVA is extending its NeuPro portfolio into AI infrastructure and expects initial NPU royalties around year-end or early 2027, with a broader ramp expected thereafter.
• Royalty revenue rose 3% year over year and 18% sequentially, supported by record shipments of 623 million CEVA-powered devices and growth in mobile and wireless IoT. Management expects a significant smartphone-modem ramp at a major U.S. customer in Q4 and into 2027.
• Licensing revenue came in below expectations after a significant multi-year connectivity agreement shifted from Q3 to Q4, though the company said it signed early in Q4. Management also cited memory-market headwinds and weakness in compute-intensive consumer markets, including smartphones, PCs, and TVs.
• Q3 revenue increased 2% year over year to $29.1 million, while non-GAAP diluted EPS rose 18% to $0.13. Non-GAAP operating income declined to $2.5 million from $3.1 million, and non-GAAP gross margin fell to 86% from 89%.

Ceva Price Performance

Shares of CEVA opened at $24.34 on Tuesday. The stock has a market cap of $685.17 million, a PE ratio of -60.82 and a beta of 1.98. The firm has a 50-day simple moving average of $30.44 and a two-hundred day simple moving average of $30.61. Ceva has a 1-year low of $17.02 and a 1-year high of $51.60.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Rosenblatt Securities lifted their target price on shares of Ceva from $45.00 to $49.00 and gave the stock a “buy” rating in a research note on Tuesday, August 11th. Benchmark upgraded shares of Ceva from a “hold” rating to a “strong-buy” rating in a report on Monday, September 14th. TD Cowen reduced their price target on shares of Ceva from $45.00 to $35.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Stifel Nicolaus decreased their price objective on Ceva from $50.00 to $40.00 and set a “buy” rating on the stock in a report on Tuesday. Finally, Needham & Company LLC lowered their price objective on Ceva from $43.00 to $30.00 and set a “buy” rating for the company in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $36.50.

Trending Headlines about Ceva

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Ceva forecast fourth-quarter revenue of $34 million to $38 million, citing higher smartphone modem royalties. That outlook points to a potential step-up in revenue. Article: Ceva expects Q4 revenue of $34M-$38M as smartphone modem royalties step up
• Positive Sentiment: The company reported 18% sequential growth in royalty revenue and record AI licensing revenue in Q3, while noting a multi-year smartphone modem ramp ahead. Article: Ceva, Inc. Announces Third Quarter 2026 Financial Results
• Neutral Sentiment: Needham lowered its price target to $30 from $43 but kept a “buy” rating. The reduced target reflects a more cautious valuation view, while the rating signals the analyst still sees potential upside. Article: Needham rating and price target
• Negative Sentiment: Q3 EPS was $0.13, below analyst expectations of about $0.18–$0.19. Revenue of $29.06 million also missed estimates of roughly $32.7 million, despite rising 2.4% year over year. The earnings and sales shortfalls are the clearest near-term headwinds for the stock. Article: Ceva lags Q3 earnings and revenue estimates

About Ceva

Ceva, Inc is a semiconductor intellectual property (IP) company that develops and licenses technology used in connected devices. Rather than manufacturing chips, the company provides processor cores, software, and system-level IP that semiconductor companies and original equipment manufacturers can incorporate into their own products.

Its portfolio includes digital signal processor (DSP) cores and platforms for wireless communications, artificial intelligence, computer vision, audio and voice processing, imaging, and sensor applications.