CEVA beats second quarter 2026 expectations as licensing revenue hits three-year high

CEVA reported second quarter 2026 results that exceeded analyst expectations on both the top and bottom lines, driven by robust demand for Edge AI and connectivity IP. Total revenues rose 13% year-over-year, anchored by licensing performance that reached its highest quarterly level in three years.

Key Highlights

• Licensing and related revenues surged 21% year-over-year to $18.2 million, driven by 10 new agreements including a strategic win for NeuPro-M NPU IP with a global AI platform company.
• Non-GAAP operating margin expanded to 11% from 3% in the prior-year period, reflecting significant operating leverage and disciplined expense management.
• Royalty revenues reached $10.8 million, representing a 17% sequential increase supported by strong wireless connectivity shipments and the ramp of automotive AI programs.
• GAAP gross margin improved to 87% from 86% year-over-year, while the company ended the quarter with $220.7 million in cash, cash equivalents, and marketable securities.