Ceva (NASDAQ:CEVA) Shares Gap Down Following Weak Earnings

Key Points

• Ceva shares fell sharply after its earnings report: the stock opened at $22.73, down from the prior close of $27.10, before trading at $24.89.
• Quarterly results missed analyst expectations: EPS was $0.13 versus estimates of $0.19, while revenue of $29.06 million came in below forecasts of $32.71 million.
• Despite the shortfall, EPS rose from $0.11 a year earlier and revenue grew 2.4% year over year; Ceva also reported 18% sequential royalty-revenue growth and record AI licensing revenue.

Ceva, Inc. (NASDAQ:CEVA - Get Free Report)'s stock price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $27.10, but opened at $22.73. Ceva shares last traded at $24.8890, with a volume of 149,555 shares.

The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.06). The business had revenue of $29.06 million during the quarter, compared to analysts' expectations of $32.71 million. Ceva had a negative return on equity of 3.15% and a negative net margin of 9.48%. The company's revenue was up 2.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.11 earnings per share.

Key Headlines Impacting Ceva

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Ceva said royalty revenue grew 18% sequentially, AI licensing revenue reached a record, and a multi-year smartphone modem ramp is ahead. These business trends could support future growth. Ceva third-quarter 2026 financial results
• Negative Sentiment: Quarterly EPS was $0.13, below estimates of about $0.18–$0.19. Revenue of $29.06 million also missed estimates, which ranged from $32.71 million to $33.36 million. The earnings and revenue shortfalls are the main near-term negative for the stock. Ceva lags Q3 earnings and revenue estimates
• Neutral Sentiment: Despite missing estimates, EPS rose from $0.11 a year earlier and revenue increased 2.4% year over year. The results therefore show modest annual growth, though not enough to meet analysts’ forecasts. CEVA missed Q3 2026 estimates, but a slipped deal changes the story

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CEVA. Weiss Ratings reissued a "sell (d-)" rating on shares of Ceva in a research report on Friday, October 2nd. Wall Street Zen cut shares of Ceva from a "buy" rating to a "hold" rating in a research report on Sunday. Needham & Company LLC lowered their target price on shares of Ceva from $55.00 to $43.00 and set a "buy" rating for the company in a research note on Monday, August 10th. Rosenblatt Securities lifted their price target on shares of Ceva from $45.00 to $49.00 and gave the company a "buy" rating in a research report on Tuesday, August 11th. Finally, UBS Group reduced their price target on shares of Ceva from $48.00 to $40.00 and set a "buy" rating on the stock in a research note on Monday, November 2nd. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $38.80.

Institutional Investors Weigh In On Ceva

Institutional investors have recently modified their holdings of the company. Aberdeen Group plc purchased a new position in Ceva in the 3rd quarter valued at approximately $8,545,000. William Blair Investment Management LLC purchased a new stake in shares of Ceva during the third quarter worth $24,975,000. Russell Investments Group Ltd. increased its position in shares of Ceva by 129.5% during the third quarter. Russell Investments Group Ltd. now owns 19,800 shares of the semiconductor company's stock worth $696,000 after acquiring an additional 11,172 shares during the period. Moody Aldrich Partners LLC increased its position in shares of Ceva by 59.2% during the third quarter. Moody Aldrich Partners LLC now owns 121,324 shares of the semiconductor company's stock worth $4,286,000 after acquiring an additional 45,138 shares during the period. Finally, Sterling Capital Management LLC raised its stake in shares of Ceva by 492.6% in the third quarter. Sterling Capital Management LLC now owns 877 shares of the semiconductor company's stock valued at $31,000 after acquiring an additional 729 shares in the last quarter. 85.37% of the stock is owned by institutional investors and hedge funds.

Ceva Price Performance

The firm has a market capitalization of $711.09 million, a price-to-earnings ratio of -63.48 and a beta of 1.98. The firm has a 50 day moving average price of $30.48 and a 200-day moving average price of $30.60.

Ceva Company Profile

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.

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