Ceva 1Q26 Review: Strength in Combo/System Deals and Edge AI Drives Upside in 2026 Outlook; Remain Neutral amid Potential Memory and FX Headwinds

Research evidence excerpt

Ceva 1Q26 Review: Strength in Combo/System Deals and Edge AI Drives Upside in 2026 Outlook; Remain Neutral amid Potential Memory and FX Headwinds

J P M O R G A N North America Equity Research

11 May 2026

Ceva

1Q26 Review: Strength in Combo/System Deals and Neutral

Edge AI Drives Upside in 2026 Outlook; Remain CEVA, CEVA US

Neutral amid Potential Memory and FX Headwinds Price (11 May 26):$36.97

▲Price Target (Dec-26):$36.00

Prior (Dec-26):$30.00

Ceva’s better than expected 1Q results and full-year revenue growth guidance

increase toward the higher end of the previously issued 8-12% y/y range reflect the IT Hardware/ Telecom & Networking

Equipmentgrowing momentum in the business as licensing revenues continue to surprise to

the upside, primarily driven by growing demand for connectivity IP, as well as Samik Chatterjee, CFA AC

visibility into a 2H royalty ramp including the Apple modem and automotive AI (1-212) 622-0798

samik.x.chatterjee@jpmorgan.com

customer ramps. Given Ceva’s historical conservatism and back-half revenue

weighting, it is notable for the outlook to be revised this early in the year; the Marc Vitenzon

(1-212) 622-3342

revised full-year guidance implies Ceva achieving mid-teens revenue growth in marc.vitenzon@jpmchase.com

2H, which would represent a meaningful reacceleration from the guide-implied

Joseph Cardoso

~9% y/y 2Q revenue growth vs. the ~11.5% delivered in 1Q. Furthermore, given (1-212) 622-9036

the operating leverage inherent in Ceva’s business model, net income growth is joseph.cardoso@jpmchase.com

now expected to be in the 40-50% y/y range vs. 35-40% expected prior. In Manmohanpreet Singh

conjunction with its earnings release, Ceva announced a Bluetooth HDT licensing (1-212) 622-4527