Chipmaker Ceva's Q3 revenue beats estimates on strong licensing growth

Ceva

10/11/2025 12:23

Overview

Ceva Q3 2025 revenue slightly beats analyst expectations, driven by strong licensing growth

AI processor licensing contributed one-third of licensing revenue, marking a major milestone

Company repurchased 40,295 shares for $1 mln, focusing on profitability improvement

Outlook

Ceva highlights AI processor licensing as a key revenue contributor

Company focuses on disciplined expense management and profitability improvement

Ceva sees strategic agreements providing good visibility into future revenue

Result Drivers

AI PROCESSOR LICENSING - AI processor licensing contributed one-third of licensing revenue, marking a major milestone for Ceva's AI business

WIRELESS IOT SHIPMENTS - Record wireless IoT shipments, led by new highs in Wi-Fi 6 and cellular IoT, reinforced leadership in wireless IP

STRATEGIC AGREEMENTS - Strategic NeuPro NPU portfolio license signed with Microchip; three new AI DSP agreements broaden reach in consumer and automotive

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$28.40 mln
$28.19 mln (5 Analysts)
Q3 EPS
-$0.10
Q3 Net Income
-$2.50 mln
Q3 Adjusted Gross Margin
89.00%
Q3 Adjusted Operating Income
$3.10 mln


*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 "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for CEVA Inc is $31.50, about 17% above its November 7 closing price of $26.16

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nPn4MW09fa

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(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.)