CEVA third quarter 2026 revenue missed estimates despite record AI licensing and royalty growth

CEVA reported third quarter 2026 revenue of $29.1 million and non-GAAP EPS of $0.13, both falling short of analyst consensus estimates. Despite the headline misses, the company achieved record results in its AI licensing business and saw a significant 18% sequential recovery in royalty revenues, driven by 5G modem ramps at a major U.S. customer.

Key Highlights

• Total revenues increased 2% year-over-year to $29.1 million, missing the $32.7 million analyst expectation.
• Royalty revenues reached $12.7 million, up 18% sequentially, supported by cellular IoT and Wi-Fi 6 shipments.
• AI licensing revenue hit an all-time high, representing more than 35% of total licensing and related revenue.
• Customer device shipments matched a quarterly record of 623 million units, though memory-related softness impacted compute-intensive consumer devices.