Ceva (NASDAQ:CEVA) Posts Earnings Results, Beats Expectations By $0.01 EPS

Ceva (NASDAQ:CEVA) issued its earnings results on Monday. The semiconductor company reported $0.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.01, FiscalAI reports. Ceva had a negative return on equity of 3.22% and a negative net margin of 9.48%.The firm had revenue of $29.03 million for the quarter, compared to the consensus estimate of $28.19 million. During the same quarter last year, the business posted $0.07 EPS. The company’s revenue was up 13.0% compared to the same quarter last year.

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

• CEVA reported 13% year-over-year revenue growth to $29 million, with licensing and related revenue up 21% to $18.2 million and non-GAAP operating margin expanding to 11% from 3% a year earlier.
• Customers increasingly adopted CEVA’s broader hardware and software platforms, including NeuPro-M AI IP for a major AI and computing platform company and complete connectivity and baseband solutions. Management said these deals should increase licensing value, customer stickiness, and future royalty opportunities.
• Royalty trends improved, supported by wireless connectivity, automotive AI programs, and smartphone share gains. CEVA shipped 567 million powered devices, up 16% year over year, while Wi-Fi shipments rose 28% and cellular IoT shipments reached a quarterly record.
• CEVA raised its 2026 revenue growth outlook to 13%–15% from 12% previously, and now expects non-GAAP operating income to grow approximately 70% and non-GAAP net income approximately 50% year over year.
• Management cautioned that memory pricing, supply constraints, and component-cost inflation could affect second-half handset demand, although it still expects normal seasonality and continued market-share gains. Bluetooth shipments declined 16% year over year and industrial IoT units fell from 24 million to 19 million.

Ceva Trading Up 0.9%

Shares of CEVA stock traded up $0.26 during trading on Wednesday, reaching $31.09. 267,530 shares of the company’s stock traded hands, compared to its average volume of 634,106. The firm’s 50-day moving average is $41.40 and its 200 day moving average is $30.93. The company has a market capitalization of $866.22 million, a P/E ratio of -77.76 and a beta of 1.99. Ceva has a 1 year low of $17.02 and a 1 year high of $51.60.

Analyst Upgrades and Downgrades

CEVA has been the topic of several recent research reports. Needham & Company LLC cut their target price on shares of Ceva from $55.00 to $43.00 and set a “buy” rating on the stock in a research report on Monday. Roth Capital reaffirmed a “buy” rating and set a $40.00 price target on shares of Ceva in a research report on Monday, May 11th. Oppenheimer dropped their price objective on Ceva from $42.00 to $38.00 and set an “outperform” rating on the stock in a research note on Tuesday. Benchmark reaffirmed a “hold” rating on shares of Ceva in a research note on Tuesday. Finally, Rosenblatt Securities raised their price objective on shares of Ceva from $45.00 to $49.00 and gave the stock a “buy” rating in a research report on Tuesday. Nine investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $40.60.

Institutional Investors Weigh In On Ceva

Institutional investors have recently made changes to their positions in the stock. American Century Companies Inc. grew its position in shares of Ceva by 3.1% in the second quarter. American Century Companies Inc. now owns 53,354 shares of the semiconductor company’s stock valued at $1,173,000 after purchasing an additional 1,619 shares in the last quarter. Norges Bank bought a new position in Ceva in the 2nd quarter worth about $495,000. Invesco Ltd. grew its holdings in Ceva by 8.5% during the 2nd quarter. Invesco Ltd. now owns 161,116 shares of the semiconductor company’s stock valued at $3,541,000 after buying an additional 12,657 shares in the last quarter. Qube Research & Technologies Ltd grew its holdings in Ceva by 243.9% during the 2nd quarter. Qube Research & Technologies Ltd now owns 93,103 shares of the semiconductor company’s stock valued at $2,046,000 after buying an additional 66,032 shares in the last quarter. Finally, Squarepoint Ops LLC increased its position in shares of Ceva by 835.6% during the second quarter. Squarepoint Ops LLC now owns 86,150 shares of the semiconductor company’s stock valued at $1,894,000 after buying an additional 76,942 shares during the period. Hedge funds and other institutional investors own 85.37% of the company’s stock.

Trending Headlines about Ceva

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Ceva, Inc. earned $0.08 per share in the second quarter, exceeding the $0.07 analyst consensus, while revenue of $29.03 million topped expectations of $28.19 million and increased 13% year over year. Stronger licensing revenue was also highlighted. Ceva Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Rosenblatt raised its price target to $49 from $45 and maintained a Buy rating. The target remains substantially above the reference price, signaling continued confidence in Ceva’s longer-term growth prospects. Analysts Revise Forecasts on Ceva Following Q2 Results
• Neutral Sentiment: Analyst sentiment remains favorable but targets were recalibrated after the results: Needham reduced its target to $43 from $55, while Oppenheimer cut its target to $38 from $42. Both retained Buy or Outperform ratings, leaving a mixed signal for near-term valuation. Analyst Price Target Revisions
• Negative Sentiment: Reports of a data breach at CEVA Logistics have caused shipping delays and exposed some European customers to scam messages. The incident may create confusion because of the shared “CEVA” name, but it does not involve Ceva, Inc.’s semiconductor business based on the information provided. Logistics Giant CEVA Suffers Data Breach

About Ceva

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.