The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 41 | — | 20.1x | Near average | |
Growth | 31 | 3.0% | 5.6% | Below average | |
Quality | 46 | -9.5% | 7.6% | Near average | |
Safety | 53 | 5.1x | 0.4x | Near average | |
Capital Return | 41 | — | 2.19% | Near average | |
Momentum | — | — | — | No data | |
Sentiment | — | — | — | No data |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
CEVA stock has seen a positive revision in its average target price by 7.5% over the last 30 days, as the consensus rose from $40 to $43 despite the number of analysts remaining steady (3 analysts). This change reflects growing optimism from established institutions such as TD Cowen and Oppenheimer, both of which maintained 'Buy' and 'Outperform' ratings, indicating higher conviction in the stock's intrinsic value.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CEVA, Inc. (NASDAQ: CEVA) is a leading global licensor of smart sensing and wireless connectivity technologies, generating its revenues primarily through two models: licensing intellectual property and software to semiconductor companies and original equipment manufacturers (OEMs), and collecting royalties based on actual unit shipments of devices integrating its technologies. The company's portfolio spans critical areas including connectivity solutions such as Bluetooth, Wi-Fi, cellular, and satellite 5G (5G NTN), alongside 3D audio sensing technologies and edge artificial intelligence (Edge AI) processors.
In the first quarter of fiscal year 2026, the company achieved total revenues of $27.0 million, representing an 11% growth compared to $24.2 million in the first quarter of 2025. This growth was driven by strong performance in the licensing and related services segment, which rose 18% to reach $17.8 million (representing 66% of total revenues), marking the strongest licensing quarter in 3 years. In contrast, royalty revenues stabilized at $9.2 million (34% of revenues), affected by seasonal weakness in the mobile segment and memory availability challenges.
On the profitability front, the company recorded a GAAP gross margin of 86% and a non-GAAP gross margin of 87% for the first quarter of 2026. However, the company recorded a GAAP net loss of $4.5 million (or a loss of $0.16 per share), compared to a GAAP net loss of $3.3 million (or a loss of $0.14 per share) in the first quarter of 2025. On a non-GAAP basis, the company achieved net income of $1.1 million and diluted earnings per share of $0.04 for the first quarter of 2026.
Automated analysis for informational purposes only — not investment advice.
CEVA stock is currently trading at $50.06, which places the stock above the analysts' average consensus price target of $43, and even above the highest target within the consensus of $48. Although the analyst consensus recommends a "Buy" with a valuation range between $40 and $48, the current market price significantly exceeds these targets following the stock's recent rally, bringing it close to its 52-week high of $51.2499.
This record performance in the licensing segment, which achieved $17.8 million in the first quarter of 2026, is due to customers adopting the integrated systems strategy and complete solutions rather than individual components. This was represented by signing 14 new licensing agreements during the quarter, which included strategic deals for Bluetooth HDT technologies compatible with future Bluetooth 7 standards, satellite 5G solutions (PentaG-NTN), in addition to licensing ultra-wideband (UWB) technologies to a major US microprocessor manufacturer.
The company has begun to reap the fruits of its AI strategy in the automotive sector through the start of commercial production of Renesas' R-Car V4H platform, which integrates CEVA's AI digital signal processor and accelerator. This platform has been integrated into the 2026 Toyota RAV4, one of the best-selling passenger vehicles globally. Management expects this collaboration, alongside its new partnership with NXP for S32E2 and S32Z2 automotive processors, to represent the beginning of stable, long-term royalty streams based on increasing AI content per vehicle.
Financial results showed 206 million Bluetooth units shipped in the first quarter of 2026 compared to 233 million units in the corresponding quarter of 2025, and this apparent decline is due to the classification method of shipments rather than weak demand. The company classifies combo chips that combine Bluetooth and Wi-Fi under Wi-Fi shipments rather than Bluetooth. Shipments of these high-margin, higher-ASP combo chips doubled year-over-year, contributing to the jump in total Wi-Fi shipments to a record 91 million units.
For the second quarter of 2026, the company expects to achieve revenues ranging between $26 million and $30 million, with a non-GAAP gross margin of 88%. For the full year 2026, the company raised its revenue growth guidance to be at the high end of its 8% to 12% range compared to 2025. It also expects strong growth in non-GAAP net income and operating profit of 40% to 50% year-over-year, supported by improved premium smartphone shipments in the second half of the year.