CEVA stock gains after Q2 FY26 revenue rises 13 percent and guidance is raised

Published on 09/18/2026 at 13:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

CEVA stock moved higher after the company reported Q2 FY26 revenue of USD 29 million, up 13 percent year over year on strong licensing growth. The semiconductor IP provider also raised full-year revenue guidance to 13-15 percent growth in 2026.

CEVA, US1572101053, Illustration mit AI erstellt.

CEVA Inc. stock (ISIN US1572101053) is trading higher after the semiconductor IP provider reported second-quarter fiscal 2026 revenue of USD 29 million, a 13 percent year-over-year increase driven by licensing growth, and raised its full-year guidance on September 17, 2026, according to ScanX.

Q2 FY26 results show double-digit revenue growth

According to ScanX, CEVA reported Q2 FY26 revenue of USD 29 million, up from USD 25.7 million in Q2 FY25, which corresponds to 13 percent year-over-year growth.

Licensing revenue in Q2 FY26 rose to USD 18.2 million from USD 15.0 million a year earlier, representing a 21 percent increase and underscoring stronger demand for CEVA's semiconductor IP blocks.ScanX Royalty revenue was broadly stable, edging up to USD 10.8 million in Q2 FY26 from USD 10.7 million in Q2 FY25, a 1 percent increase.

Non-GAAP operating income improved sharply to USD 3.1 million in Q2 FY26 from USD 0.8 million in the prior-year quarter, expanding the non-GAAP operating margin from 3 percent to 11 percent.ScanX Gross margin remained robust at 87 percent on a GAAP basis and 88 percent on a non-GAAP basis for the quarter.ScanX

Q2 FY26 adjusted earnings per share stood at USD 0.08, ahead of the analyst consensus of USD 0.07 and above the USD 0.07 reported in Q2 FY25, meaning CEVA beat expectations by around 14.29 percent and achieved year-over-year EPS growth of 14.29 percent.ScanX Quarterly sales of USD 29.033 million also exceeded the consensus estimate of USD 28.170 million by 3.06 percent, with year-over-year growth of 13.07 percent.ScanX

Full-year FY26 guidance raised on licensing momentum

On the back of its Q2 FY26 performance, CEVA raised its full-year fiscal 2026 revenue growth outlook to a range of 13 to 15 percent, citing strong licensing momentum and improving royalty trends, according to ScanX.

The company also indicated that non-GAAP operating income is expected to rise by around 70 percent for full-year FY26 compared with the prior year, supported by higher licensing activity and disciplined cost management.ScanX For investors, the combination of double-digit revenue growth, expanding margins and a more confident outlook underscores CEVA's leverage to demand for signal-processing and connectivity IP in key end markets.

CEVA's Q2 FY26 gross margin profile, with 87 percent GAAP and 88 percent non-GAAP gross margin, signals a capital-light business focused on licensing rather than manufacturing, which typically supports high returns on intellectual property over time.ScanX At the same time, net financial income fell to USD 1 million from USD 2.1 million due to foreign-exchange effects on Israeli shekel-denominated lease obligations, reminding investors that currency and financing dynamics can influence reported earnings even when operations perform well.ScanX

Stock reaction and valuation context

Following the earnings announcement and guidance increase, CEVA stock gained about 1.2 percent to USD 32.29 in pre-market trading, according to ScanX.

Separately, a quantitative valuation overview on September 17, 2026 noted that CEVA shares rose 7.2 percent on that day to a price of USD 29.84, within a 52-week trading range between USD 17.02 and USD 51.60, and suggested that the stock was around 31 percent above an intrinsic value estimate of USD 22.77.GuruFocus From an investor perspective, that comparison between the USD 29.84 market price and the USD 22.77 valuation benchmark highlights the debate over how much of CEVA's growth and margin expansion is already reflected in the stock.

Over the past week leading up to September 17, 2026, CEVA's share price gained approximately 6.7 percent, although it remained down about 8.8 percent over the past month, indicating that the Q2 FY26 results and guidance upgrade helped to stabilize sentiment after a period of weakness.GuruFocus With a GF Score of 71 in that framework, CEVA is assessed as having moderate overall fundamental strength, balancing profitability and growth prospects with valuation considerations.GuruFocus

CEVA stock price level and investor takeaway

As of the latest completed trading day referenced in the available data, CEVA stock closed at USD 29.84 on Nasdaq within its 52-week range of USD 17.02 to USD 51.60 and had recently advanced 7.2 percent on September 17, 2026.GuruFocus For retail investors, the key themes now are whether CEVA can sustain double-digit revenue growth in line with its raised 13 to 15 percent guidance, maintain non-GAAP operating margin near or above the current 11 percent level and turn licensing momentum and royalty trends into durable earnings growth while keeping valuation in balance with fundamentals.