Silicon IP licensor Ceva's Q1 revenue beats, helped by AI demand

Ceva

11/05/2026 12:09

Overview

US silicon IP licensor's Q1 revenue rose 11% yr/yr, beating analyst expectations

Adjusted EPS for Q1 declined yr/yr to $0.04 from $0.06

Company says licensing growth driven by integrated solutions and edge AI adoption

Outlook

Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

LICENSING GROWTH - Co said Q1 licensing and related revenues rose 18% yr/yr, driven by demand for integrated, system-level solutions in connectivity and AI

ROYALTY TRENDS - Record Wi-Fi shipments and growth in cellular IoT, 5G infrastructure and automotive AI drove smart edge royalty revenues, partly offset by softness in smartphones

AI CONTRIBUTION - AI accounted for more than 20% of licensing and related revenues, with growth supported by automotive production milestones and new collaborations

Company press release: ID:nPn5McfkBa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$27 mln
$26.12 mln (8 Analysts)
Q1 EPS
-$0.16
Q1 Net Income
-$4.5 mln
Q1 Adjusted Gross Margin
87%
Q1 Adjusted Operating Income
$524,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $30.00, about 18.9% below its May 8 closing price of $36.97

The stock recently traded at 61 times the next 12-month earnings vs. a P/E of 33 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)