CEVA (CEVA) Stock Forecast & Price Target

CEVA Inc reported full-year revenue of $109.6 million, marking a 2% year-over-year increase and a notable 63.6% sequential growth, indicating robust demand for its signal-processing intellectual property. The company achieved a licensing and related revenue of $63.6 million, a 6% year-over-year rise, along with a strong non-GAAP gross margin of 89.0%, consistent with its guidance. Furthermore, management projects a 35-40% year-over-year growth in non-GAAP operating and net income, bolstered by operational efficiencies and a favorable revenue mix, reflecting confidence in ongoing profitability.

CEVA Inc. has issued a revenue guidance of $26 million for 1Q26, which represents a decrease of approximately 17% compared to the previous quarter and falls short of both internal and consensus estimates. The company anticipates non-GAAP gross margins to decline by about 200 basis points on a sequential basis due to reduced seasonal royalty contributions. Additional risks affecting CEVA's performance include a potential slowdown in licensing activities, challenges with connectivity, and pressures from U.S. mobile customers opting to in-source intellectual property.