Track market-moving stories before they get noisy

Signet Jewelers (SIG +6.79%) is the world's largest retailer of diamond jewelry.

The company competes in a mature industry, but the stock offers a chance to get exposure to the jewelry segment from an industry leader trading at a value price.

Over the last five years, Signet has traded sideways as the company dealt with a post-pandemic hangover, high inflation, and a sluggish consumer spending environment. However, after bringing in a new CEO and organizing around its Grow Brand Love transformation strategy, the business is looking as healthy as it has in a long time, with comparable sales up in four out of the last five quarters and a solid guidance hike in its first-quarter report.

Let's take a look at the latest results.

Image source: Getty Images.

Signet shines again During a period with record-low consumer sentiment, Signet managed to deliver solid results with comparable sales up 1.8% in the first quarter, and revenue rose 0.8% to $1.55 billion, which matched expectations. The gap between those numbers is explained by the company's ongoing store rationalization program.

Signet managed to buck the overall headwinds in the consumer discretionary sector as CEO J.K. Symancyk said that because jewelry is an emotional and a considered purchase, it's not necessarily exposed to pressure from high gas prices or inflation like more incidental purchases might be.

Average unit retail was up 5%, and units sold fell 3%, showing the company is finding success at the higher end of the market, while it's experiencing pressure at the lower end due in part to higher gold prices.

Gross margin in the quarter actually fell 70 basis points to 35.8% due in part to inventory write-downs from its transition away from the James Allen banner, which is being folded into Blue Nile. The company also took advantage of elevated gold prices to melt down and trade in some of its gold inventory.

Adjusted operating margin expanded from 4.6% to 5.1% as the company benefited from increased leverage due to the gains in comparable sales and from $18 million in cost savings from the Grow Brand Love strategy.

On the bottom line, adjusted earnings per share jumped from $1.18 to $1.56, easily beating the consensus at $1.38. In addition to higher adjusted operating income, the company benefited from a lower tax rate and ongoing share repurchases as it reduced shares outstanding by more than 5% over the last year.

Signet also raised its full-year guidance. The company is now calling for comparable sales of -0.75% to 2.5%, up from a previous range of -1.25% to 2.5%, and now it expects adjusted earnings per share of $9.20-$11.00, up from a previous range of $8.80-$10.74.

Based on the updated forecast, Signet trades at a forward P/E of just 9.

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Signet also announced an accelerated $50 million share repurchase program, which it intends to begin this month, and the company has $355 million remaining in its share repurchase authorization after that, or about 10% of its market cap.

With comps now positive, investors seem to be underestimating the upside potential of Signet as it can deliver solid EPS growth with the combination of rising comps, an improving margin, and a lower share count.

For value-minded investors, Signet looks like an attractive choice right now. If the company can continue delivering comparable sales growth, earnings per share should move higher as well, fueling gains in the stock.

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Signet (SIG - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Signet is a member of our Retail-Wholesale group, which includes 189 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Signet is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SIG's full-year earnings has moved 1.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, SIG has moved about 3% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 0.7%. As we can see, Signet is performing better than its sector in the calendar year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dillard's (DDS - Free Report) . The stock has returned 0.8% year-to-date.

In Dillard's' case, the consensus EPS estimate for the current year increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Signet belongs to the Retail - Jewelry industry, a group that includes 5 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 8.6% so far this year, meaning that SIG is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 4 stocks and is ranked #69. Since the beginning of the year, the industry has moved -2.9%.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Signet and Dillard's as they attempt to continue their solid performance.

Key Takeaways SIG posted 1.8% same-store sales growth as every category and most brands turned positive.Signet raised fiscal 2027 outlook: sales $6.7-$6.9B and adjusted EPS $11.00.Signet repositioned Blue Nile with The Clear Cut buy; James Allen moved in, with a $32M inventory write-down. Signet Jewelers Limited’s (SIG - Free Report) first-quarter fiscal 2027 call centered less on the quarter’s headline beat and more on management’s case that its Grow Brand Love strategy is beginning to show up in both sales and earnings. Executives pointed to broad-based comparable-sales growth, better unit trends and a higher full-year outlook.

The setup matters for investors because Signet is trying to prove it can improve brand positioning, margins and capital returns at the same time. The quarter gave management room to sound more confident on each of those fronts.

Signet Leans on Broad-Based Comp GrowthChief executive officer J.K. Symancyk said Signet posted positive comparable sales in each month of the quarter, with growth across every category and most brands. He emphasized a better balance between average unit retail growth and units, with unit comps improving sequentially from the fourth quarter.

That narrative was supported by the reported numbers. Same-store sales rose 1.8%, revenues increased to $1.55 billion from $1.54 billion a year earlier, and adjusted earnings per share climbed to $1.56 from $1.18.

Adjusted EPS exceeded the Zacks Consensus Estimate by 18.18%, while revenues fell slightly short of the $1.56 billion forecast by 0.28%. The results support management’s view that execution improved despite modest top-line growth.

Signet Pushes Brand and Digital ChangesSymancyk framed the current year as the second year of Grow Brand Love, with the biggest priorities tied to sharper brand distinction, portfolio optimization and a stronger operating model. He said website redesigns for Kay, Zales and Jared are in testing and should be completed early in the fiscal third quarter, ahead of the holiday season.

He also described a more data-driven marketing approach, including social-first storytelling and creator partnerships. Management said Kay generated low double-digit growth in impressions on only a 1% increase in social-media spending, reinforcing the message that the company is changing where it spends rather than simply spending more.

The strategic thread here is differentiation. Management tied clearer digital presentation, tighter assortment and more targeted marketing to improved conversion and stronger brand equity rather than to a short-term promotional lift.

Signet Reworks the Portfolio Around DiamondsChief operating and financial officer Joan Hilson used the call to outline a more defined role for Blue Nile inside the portfolio. She said Blue Nile is being repositioned as a premium natural-diamond brand for a broader but more affluent customer base.

That plan now includes the acquisition of The Clear Cut, a digitally native natural-diamond jeweler with concierge capabilities and proprietary gem technology. Hilson said the deal should strengthen Blue Nile’s luxury positioning and improve how Signet curates stones and serves higher-end customers.

At the same time, James Allen has been folded into Blue Nile. Management disclosed a $32 million noncash inventory write-down tied to the transition and said no material future James Allen charges are expected.

Signet Defends Margins Against Gold PressureHilson said adjusted gross margin was $589.2 million, or 37.9% of sales, with the rate down about 1 percentage point. The main pressure came from higher gold costs, which reduced merchandise margin by about 70 basis points.

Management’s answer was to stress cost control and sourcing discipline rather than to signal aggressive pricing. Symancyk said the company is protecting lower price-point goods through assortment changes, plated offerings and design work that uses less gold, while centralized diamond sourcing should help margins and inventory turnover over time.

In Q&A, Jefferies asked about longer-term margin levers, and management’s tone stayed constructive. Executives pointed to pricing and promotion discipline, inventory health and sourcing scale as the main drivers of future expansion rather than any single near-term fix.

Signet Raises the Full-Year MidpointHilson said Signet raised the midpoint of its fiscal 2027 outlook to reflect first-quarter performance and second-quarter momentum. The company now expects total sales of $6.7 billion to $6.9 billion, same-store sales from down 0.75% to up 2.5%, and adjusted EPS of $9.20 to $11.00, up from the prior $8.80 to $10.74 range.

Second-quarter guidance also implied a stable demand backdrop, with expected same-store sales growth of 0.5% to 2.5% and adjusted operating income of $79 million to $93 million.

Management added that the outlook still assumes a dynamic tariff and commodity environment. Hilson said the company expects a mid-teens effective tariff rate and believes sourcing flexibility can limit the impact if country-specific tariffs rise further.

Signet Leaves a More Assertive ToneThe most revealing Q&A exchanges came on higher-end demand, unit trends and comp quality. Analysts from Stephens, Jefferies and Goldman Sachs pressed management on whether strength at higher price points reflected market-share gains, how much room remains for AUR expansion and what Blue Nile’s premiumization means for the wider portfolio.

Symancyk’s answers were consistently confident. He argued that Signet is underpenetrated at higher price points, is seeing positive momentum across brands and still has room to improve lower-end unit trends as assortment resets move through the year.

Zacks Signals for Signet SIG carries a Zacks Rank #2 (Buy), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Under the Zacks framework, Zacks Rank #1 (Strong Buy) and 2 stocks paired with Style Scores of A or B carry stronger near-term performance potential and a VGM Score of A points to favorable combined value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank stocks here.

That said, the Zacks Rank is driven primarily by earnings estimate revisions and can change after a quarterly report as analysts update their models. The current mix of a Zacks Rank #2 and top-tier Style Scores keeps SIG in a favorable screening position, but the signal remains revision-dependent.

Signet (SIG - Free Report) closed the last trading session at $84.56, gaining 1.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $112.22 indicates a 32.7% upside potential.

The average comprises nine short-term price targets ranging from a low of $90.00 to a high of $150.00, with a standard deviation of $19.55. While the lowest estimate indicates an increase of 6.4% from the current price level, the most optimistic estimate points to a 77.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for SIG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why SIG Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.6%.

Moreover, SIG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SIG could gain, the direction of price movement it implies does appear to be a good guide.

On May 11, 2026, Semtech Corp SMTC shares rose 12.1% to a price of $136.53. This increase comes amid a strong price performance, as the stock has surged 60.2% over the past month and 289.3% over the past year, with a 52-week range between $34.59 and $127.19.

GF Value™ verdict: Current price of $136.53 is 289.9% overvalued compared to a GF Value™ of $35.02. GF Score™: 76/100, indicating above-average performance. Most notable signal: Insiders sold $3.2M worth of shares in the last 3 months, with no buying activity. Is SMTC Overvalued or Undervalued? According to the GF Value™, Semtech Corp is significantly overvalued, with a current share price of $136.53 compared to a GF Value™ estimate of $35.02. This represents a substantial 289.9% overvaluation, indicating a significant margin of safety for potential investors. The high market price suggests that the stocks may not be a prudent investment at this time, as the risk of a price correction is elevated. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

When evaluating the stock's current valuation against its intrinsic value, the risk of overvaluation is apparent. Investors should be cautious, as the stock's price may not sustain its current levels given the inherent risks associated with such a significant overvaluation.

How Does SMTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 61.8x 39.3x (5-Year Median) Semtech Corp's current P/E ratio of 61.8x is significantly above its 5-year median P/E of 39.3x. This indicates that the stock is trading above its historical valuation, which aligns with the GF Value™ assessment of being overvalued. Therefore, the P/E analysis reinforces the notion that Semtech may not be an attractive investment at its current price levels.

What Does SMTC's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 7/10 Profitability 7/10 Growth 7/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 76/100 indicates that Semtech Corp is above average in terms of its overall performance. The company shows strong rankings in Financial Strength, Profitability, and Growth, all rated at 7/10. However, the Valuation rank of 1/10 highlights significant concerns regarding the stock's current price relative to its intrinsic value. The high Momentum rank of 9/10 suggests positive short-term price performance, but this could be misleading given the overall valuation situation.

What Are Insiders Doing with SMTC Stock? Recent insider activity in Semtech Corp has shown a pattern of selling, with insiders selling $3.2M worth of shares in the last three months and no buying reported. This trend may suggest a lack of confidence among insiders in the company's current valuation and future performance, which could be a red flag for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Semtech Corp is currently overvalued. The significant disparity between the current market price and the intrinsic value suggests that investors should exercise caution and carefully consider the risks before making investment decisions.

For the complete analysis, visit the Semtech Corp SMTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SMTC's GF Score™?

SMTC's GF Score™ is 76/100, indicating above-average performance in terms of financial health and growth potential.

Is SMTC overvalued or undervalued?

SMTC is considered overvalued based on the GF Value™, which estimates the fair value at $35.02 compared to the current price of $136.53.

What is SMTC's P/E ratio?

SMTC's current P/E ratio is 61.8x, which is significantly higher than its 5-year median P/E of 39.3x, suggesting that the stock is trading at an elevated valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Semtech?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Semtech (SMTC - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.47 a share 13 days away from its upcoming earnings release on May 26, 2026.

Semtech's Earnings ESP sits at +3.68%, which, as explained above, is calculated by taking the percentage difference between the $0.47 Most Accurate Estimate and the Zacks Consensus Estimate of $0.45. SMTC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SMTC is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Roper Technologies (ROP - Free Report) as well.

Slated to report earnings on July 20, 2026, Roper Technologies holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $5.34 a share 68 days from its next quarterly update.

Roper Technologies' Earnings ESP figure currently stands at +0.31% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.32.

Because both stocks hold a positive Earnings ESP, SMTC and ROP could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Key Takeaways Semtech expects Q1 FY27 revenues of about $283M, with EPS of 45 cents.Semtech sees strong demand for FiberEdge and CopperEdge products tied to AI infrastructure.SMTC expects semiconductor products' gross margin to decline in Q1 due to HieFo acquisition ramp costs. Semtech Corporation (SMTC - Free Report) is scheduled to report first-quarter fiscal 2027 results on May 26.

For the fiscal first quarter, Semtech anticipates revenues to be $283 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $283.3 million, indicating a rise of 12.8% from the year-ago quarter.

SMTC anticipates non-GAAP earnings per share to be 45 cents (+/- 3 cents). The consensus mark for the same is pegged at 45 cents, unchanged over the past 60 days, indicating a rise of 18.4% from the year-ago quarter.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching once, the average surprise being 3.5%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence SMTC’s Q1 ResultsSemtech’s fiscal first-quarter performance is expected to have benefited from continued strength in its infrastructure end markets, driven by growing demand across hyperscale data center applications. Strong adoption of SMTC’s FiberEdge transimpedance amplifiers and CopperEdge products for Active Copper Cable applications is likely to have aided the company’s prospects in the first quarter. Increasing AI infrastructure investments and rising deployments of 800G and 1.6T architectures are also expected to have driven demand for Semtech’s optical and copper interconnect solutions.

SMTC expects revenues from the infrastructure end market to increase sequentially and projects data center revenues to grow 12% on a sequential basis. The Zacks Consensus Estimate for revenues from the infrastructure end market is pegged at $92.3 million, indicating sequential growth of 11.6%.

Semtech’s first quarter prospects are likely to have benefited from improving seasonal trends in the high-end consumer market, supported by market share gains in TVS products and contributions from its recently acquired force sensing portfolio. SMTC expects revenues from the high-end consumer end market to increase 9% on a sequential basis. The Zacks Consensus Estimate for revenues from high-end consumer market is pegged at $39.9 million, indicating growth of 9% on a sequential basis.

Strong Momentum across its Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to have contributed well. The company’s wireless business is expected to have benefited from expanding 5G offerings and increasing carrier readiness of its 5G solutions. The Zacks Consensus Estimate for revenues from the Signal Integrity segment is pegged at $98 million, indicating growth of 7.7% on a sequential basis. The Zacks Consensus Estimate for revenues from the Analog Mixed Signal & Wireless segment is pegged at $98 million, indicating growth of 4.3% on a sequential basis.

However, softness in the industrial end-market and IoT Systems and Connectivity business is likely to have weighed on the company’s prospects in the fiscal first quarter. SMTC expects net revenues from the industrial end market to remain flat in the first quarter. The Zacks Consensus Estimate for revenues from the industrial end market is pegged at $151 million, remaining flat on a sequential basis. The consensus estimate for revenues from the IoT Systems and Connectivity segment is pegged at $87 million, indicating a sequential decline of 3.3%.

Further, management also guided total semiconductor products’ gross margin to contract 130 basis points sequentially to 60.4% in the first quarter of fiscal 2027, attributing the decline to initial ramp costs related to the HieFo acquisition. This is likely to have weighed on the company’s gross margins in the first quarter.

What Our Proven Model Says for SMTC’s Q1 EarningsAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Semtech has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some stocks you may want to consider in the Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

Dell Technologies (DELL - Free Report) has an Earnings ESP of +3.51% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is set to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2027 earnings is pegged at $3.00 per share, up by 3 cents over the past seven days, indicating a rise of 93.6% from the year-ago quarter’s reported figure.

Salesforce, Inc. (CRM - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #2 at present.

Salesforce is scheduled to report first-quarter fiscal 2027 results on May 27. The Zacks Consensus Estimate for Salesforce’s first-quarter fiscal 2027 earnings is pegged at $3.12 per share, unchanged over the past 30 days, indicating a rise of 20.9% from the year-ago quarter’s reported figure.

Autodesk (ADSK - Free Report) has an Earnings ESP of +0.35% and carries a Zacks Rank of 3 at present.

Autodesk is slated to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for ADSK’s first-quarter fiscal 2027 earnings is pegged at $2.84 per share, unchanged over the past 30 days, indicating a rise of 24% from the year-ago quarter’s reported figure.

CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Announces First Quarter of Fiscal Year 2027 Results.

SMTC stock is moving. Watch the price action here. Semtech Q1 Details       Semtech reported quarterly earnings of 51 cents per share, which beat the consensus estimate of 45 cents, according to Benzinga Pro data.

Quarterly revenue came in at $291 million, which beat the analyst consensus estimate of $283.45 million and was up from $251.1 million in the same period last year.

“Semtech is off to an exceptional start in fiscal year 2027, delivering record quarterly results and expanding design wins across our data center and LoRa businesses,” said CEO Hong Hou.

Looking AheadSemtech expects second-quarter adjusted EPS of 59 cents to 63 cents, versus the 51 cent analyst estimate, and revenue in a range of $323 million to $333 million, versus the $300.63 million estimate.

SMTC Stock Price: According to data from Benzinga Pro, Semtech stock was up 5.31% to $172 in Tuesday's extended trading.  

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Semtech (SMTC - Free Report) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +12.51%. A quarter ago, it was expected that this chipmaker would post earnings of $0.43 per share when it actually produced earnings of $0.44, delivering a surprise of +2.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Semtech, which belongs to the Zacks Semiconductor - Analog and Mixed industry, posted revenues of $291 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.73%. This compares to year-ago revenues of $251.1 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Semtech shares have added about 112.8% since the beginning of the year versus the S&P 500's gain of 9.2%.

What's Next for Semtech?While Semtech has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Semtech was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.52 on $299.49 million in revenues for the coming quarter and $2.20 on $1.22 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - Analog and Mixed is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Computer and Technology sector, Accenture (ACN - Free Report) , has yet to report results for the quarter ended May 2026. The results are expected to be released on June 18.

This consulting company is expected to post quarterly earnings of $3.68 per share in its upcoming report, which represents a year-over-year change of +5.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Accenture's revenues are expected to be $18.73 billion, up 5.7% from the year-ago quarter.

Semtech Corporation (SMTC) Q1 2027 Earnings Call Transcript

Semtech Corporation (SMTC - Free Report) used its first-quarter fiscal 2027 earnings call to make a broader point than the headline numbers alone. Management argued that design wins, backlog and supply preparation are setting up a faster growth year, led by data center products and supported by renewed LoRa momentum.

The message that mattered most was forward-looking. Executives pointed to rising optical and copper deployments, a stronger second-quarter outlook and improving visibility into the back half of the year.

SMTC Leans Into AI ConnectivityPresident and CEO Hong Hou framed the quarter as an early sign that Semtech’s portfolio work and customer engagement are translating into larger opportunities across hyperscale networking.

He said record data center revenue of $71.6 million was driven by broad demand for 800-gig FiberEdge products, with linear pluggable optics gaining traction in both the United States and China. He also said the company won additional sockets, including some sole-source positions, as customers pushed ahead with major deployments.

Hou tied that momentum to what comes next. He said 1.6T shipments are starting in the second quarter and should build in the second half, supported by significant bookings and backlog.

Semtech Builds the Next Optical LayerHou spent much of the call connecting Semtech’s current optical strength to future architectures. He said major module makers have adopted Semtech parts for 1.6T transceivers using the latest DSPs, while hyperscalers are showing more conviction around LRO and LPO because of power savings.

He also pointed to the March HieFo acquisition as a strategic extension of that roadmap. Gain chips and related indium phosphide photonic products, he said, position Semtech more deeply in 1.6T and 3.2T modules as well as coherent and next-generation optical systems.

That framing suggested management is trying to move investor focus beyond a single product cycle. Hou described Semtech as building a broader platform across scale-up, scale-out and scale-across interconnects.

SMTC Keeps LoRa as a Second EngineThe industrial business did not carry the same headline effect as the data center, but management made clear that LoRa remains an important growth pillar. Industrial revenue rose to $153.9 million, while LoRa-enabled sales reached $44.5 million.

Hou said LoRa growth is broadening across smart utilities, smart buildings, smart cities and asset tracking. He also highlighted the fourth-generation LoRa platform, which lifts throughput to 2.6 megabits per second while preserving low-power and long-range advantages.

In the Q&A, Hou added more durability to that thesis. A Baird analyst asked about medium-term LoRa growth, and he said the company is seeing gateway expansion on top of growing end-node deployments, with added upside from security, smart-building and Amazon Sidewalk applications.

Semtech Spends for Programs, Not OverheadExecutive vice president and CFO Mark Lin used the call to show that stronger growth is not coming at the expense of margin discipline. First-quarter adjusted gross margin reached 53%, while adjusted operating margin rose to 20.4%.

Lin said the second-quarter outlook calls for more R&D spending, especially in data center and LoRa, but with SG&A falling as a percentage of revenue. He described that mix as deliberate, with incremental spending aimed at high-conviction programs rather than broader overhead expansion.

That operating profile also supported a better near-term financial setup. Semtech reported adjusted EPS of $0.51, beating the Zacks Consensus Estimate of $0.45 by 12.5%, while revenue of $291 million topped the consensus estimate of $283.27 million by 2.7%.

SMTC Q&A Shows More ConfidenceThe clearest tone shift came during analyst questioning, where Hou sounded more emphatic about duration and visibility. An Oppenheimer analyst asked whether supply could limit upside, and Hou said the company had already spent roughly 18 months preparing capacity and is now working to double or triple current levels.

A Needham analyst pressed on whether data center growth could exceed management’s earlier floor. Hou said he did not want to cap the opportunity and pointed to visibility, backlog and bookings as support for faster second-half growth.

Questions from Susquehanna, Benchmark and Stifel also pulled out the same theme. Hou described demand as broad-based across 800-gig, 1.6T, LPO, LRO, CopperEdge and lasers, rather than concentrated in one module maker or one narrow product ramp.

Semtech Exits the Call on Expansion PlansThe company’s second-quarter guide reinforced the call’s main message. Semtech expects revenue of $328 million, plus or minus $5 million, and adjusted EPS of $0.61, plus or minus $0.02, with growth projected across all three segments.

Hou’s closing posture was centered on execution rather than celebration. He emphasized supporting customer ramps, intensifying R&D in coherent light, CPO, LoRa and sensors, and finishing the early steps of portfolio optimization, including the cellular module divestiture process.

Zacks Signals Point to a Mixed SetupSMTC carries a Zacks Rank #2 (Buy), which under the Zacks framework reflects favorable earnings estimate revision trends and generally supportive near-term performance prospects. That positive rank stands out more than the stock’s individual style profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are mixed, with an F for Value, an A for Growth, an F for Momentum and a VGM Score of C. In practice, that points to stronger growth characteristics than value or momentum support. The Zacks Rank remains the primary signal, and it can change as analysts revise estimates after the quarter’s results.

Key Takeaways Semtech posted Q1 FY27 EPS of 51 cents, up about 34.2% Y/Y and beating estimates.SMTC revenues rose 16% to $291M, led by 36% growth in infrastructure.SMTC guides Q2 FY27 revenues of about $328M and EPS near 61 cents per share. Semtech Corporation (SMTC - Free Report) shares gained 8.5% during Tuesday’s extended trading session after the company reported better-than-expected first-quarter fiscal 2027 results.

Semtech posted non-GAAP earnings of 51 cents per share, which beat the Zacks Consensus Estimate by 13.3%. The bottom line exceeded the management’s guidance of 45 cents (+/- 3 cents) and reflected a robust year-over-year improvement of approximately 34.2%.

Semtech beat on earnings in each of the trailing four quarters, the average surprise being 6.8%.

SMTC’s first-quarter fiscal 2027 revenues of $291 million topped the Zacks Consensus Estimate by 2.7% and came above management’s guidance of $283 million (+/- $5 million). The top line jumped 16% year over year, with solid growth across all of its end markets, particularly in data centers.

Semtech’s Q1 Revenues in Terms of End MarketsThe company’s top-line performance can be attributed to the impressive year-over-year rise in its end markets.

Sales from the infrastructure market totaled $98.8 million (33.9% of net sales), exhibiting year-over-year growth of 36%, supported by the expanding data center business. A key highlight was record data center net sales of $71.6 million, rising 39% year over year, reflecting continued strength in high-speed interconnect solutions.

Sales from the industrial market amounted to $153.9 million (52.9% of net sales), up 8% year over year.

Sales from the high-end consumer market totaled $38.4 million (13.2% of net sales), up 8% year over year, as the company cited resilience and continued design win momentum.

SMTC's LoRa Growth Adds Another EngineLoRa-enabled net sales were $44.5 million, up 12% sequentially and 14% year over year, reflecting broader adoption across smart utilities, smart buildings, smart cities and asset management.

The company is positioning its fourth-generation LoRa platform to expand use cases by combining dual-band capability with higher data throughput, while maintaining the low-power attributes that underpin long-battery-life deployments.

SMTC’s Q1 Revenues in Terms of Product LinesSignal Integrity (35.1% of net sales) sales totaled $102 million, up 38.8% year over year. Analog Mixed Signal & Wireless (34.6% of net sales) sales amounted to $100.8 million, which rose 11.3% year over year.

IoT System and Connectivity (30.3% of net sales) sales totaled $88.3 million, up 1.6% on a year-over-year basis.

Semtech’s Margins in DetailsThe non-GAAP gross margin of 53% contracted 50 basis points (bps) on a year-over-year basis and expanded 140 bps sequentially.

Non-GAAP operating income increased 24.6% year over year to $59.3 million. The non-GAAP operating margin expanded to 20.4% from 19% reported in the year-ago quarter. On a quarter-over-quarter basis, non-GAAP operating income increased 18.6%, while margin expanded 220 basis points.

Semtech’s Balance Sheet & Cash FlowAs of April 26, 2026, cash and cash equivalents totaled $163.3 million, down from $195.2 million as of Jan. 25, 2026.

The long-term debt amounted to $492 million, up from the previous quarter’s reported figure of $491.2 million.

During the first quarter, Semtech generated operating cash flow and free cash flow of $36.2 million and $28 million, respectively.

Semtech Initiates Q2 FY27 GuidanceFor the second quarter of fiscal 2027, Semtech expects net sales to be $328 million (+/- $5 million). The Zacks Consensus Estimate is pegged at $299.5 million, indicating a year-over-year rise of 16.3%.

The non-GAAP gross margin is expected to be 54% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 21.9% (+/- 40 bps).

Non-GAAP earnings are expected to be 61 cents (+/- 2 cents) per share. The consensus mark for earnings is pegged at 52 cents per share, indicating a year-over-year rise of 26.8%.

SMTC’s Zacks Rank and Other Stocks to ConsiderCurrently, Semtech carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Applied Materials have gained 77.1% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up 9 cents over the past seven days, indicating a year-over-year surge of 27.6%.

Shares of Celestica have gained 25.1% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.

Amphenol shares have jumped 3.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.

Comparing JPMorgan BetaBuilders U.S. Small Cap Equity ETF (CBOE:BBSC) and Vanguard Small-Cap ETF (VB +2.50%) reveals distinct choices in cost and diversification for investors seeking exposure to smaller American companies.

Both funds provide a path into the U.S. small-cap market, yet they differ in their construction and scale. BBSC targets the 95th to 99th percentiles of market capitalization, while VB tracks a broad index to capture a diversified group of small companies.

Snapshot (cost & size)MetricBBSCVBIssuerJ.P. MorganVanguardExpense ratio0.09%0.03%1-yr return (as of June 3, 2026)36.0%28.8%Dividend yield1.0%1.2%Beta1.141.05AUM$692.7 million$177.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

VB is significantly more affordable with an expense ratio of 0.03%, compared to 0.09% for BBSC. Additionally, the Vanguard fund provides a higher payout for income-seeking investors with its 1.2% trailing-12-month distribution yield.

Performance & risk comparisonMetricBBSCVBMax drawdown (5 yr)(30.9%)(28.2%)Growth of $1,000 over 5 years (total return)$1,379$1,410What's insideThe Vanguard Small-Cap ETF (VB +2.50%) offers broad exposure through 1,357 holdings, with its largest sector weights in industrials at 21%, technology at 17%, and financial services at 13%. Its largest positions include EMCOR Group Inc (EME +4.63%) at 0.51%, Bloom Energy Corp (BE +6.25%) at 0.48%, and Ciena Corp (CIEN +2.04%) at 0.48%. This fund was launched in 2004 and has a trailing-12-month dividend of $3.50 per share.

The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC +2.66%) is more concentrated with 782 holdings and focuses on technology at 18%, financial services at 17%, and healthcare at 16%. Its top holdings include TTM Technologies Inc (TTMI +8.77%) at 0.87%, Semtech Corp (SMTC +6.02%) at 0.79%, and Sitime Corp (SITM +8.58%) at 0.77%. Launched in 2020, BBSC has a trailing-12-month dividend of $0.89 per share.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsAs investors are steadily rotating out of large-cap stocks into less expensive investments, they are increasingly finding good values with small-cap stocks. This year, the Russell 2000 small-cap index has beaten the S&P 500 with a return of about 17% year-to-date and 40% over the past 12 months.

While both of these ETFs focus on small-caps, they look at slightly different areas of the universe The BBSC ETF includes small-cap between the 95th and 99th percentile of stocks, so it excludes the microcaps. Thus, it holds less stocks, about 728. The Vanguard ETF invests in a broader swath of the small-cap universe, holding about 1,300 stocks.

The JPMorgan ETF has been a slightly better performer YTD and beats the Vanguard ETF over the past 12 months. But the Vanguard ETF has better five-year annualized returns and has a lower expense ratio.

Both are solid options if you are looking for a small-cap ETF, but it is really hard to beat VBʻs miniscule 0.03% expense ratio and better longer-term returns.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Ciena, EMCOR Group, and SiTime. The Motley Fool has a disclosure policy.

Ultra-efficient NPU IP recognized for advancing edge AI in resource-constrained devices

, /PRNewswire/ -- Embedded World -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP for the Smart Edge, today announced that its Ceva-NeuPro-Nano neural processing unit NPU IP has won the Artificial Intelligence category of the 2026 embedded award at the embedded world Exhibition & Conference in Nuremberg, Germany.

NeuPro-Nano, part of Ceva’s scalable NeuPro family of neural processing units (NPUs), won the Artificial Intelligence Award at embedded world 2026, recognizing its ultra-efficient AI acceleration for resource-constrained edge devices and enabling advanced on-device intelligence for next-generation smart edge applications. The embedded award honors the most innovative products in the embedded systems industry and is judged by an independent panel of industry and academic experts. Ceva-NeuPro-Nano was recognized for delivering powerful AI inference capabilities with exceptional energy efficiency and minimal silicon footprint, enabling advanced AI workloads directly on highly resource-constrained edge devices.

"Winning the Artificial Intelligence award at embedded world is a strong validation of our vision for scalable, energy-efficient edge AI," said Yaron Galitzky, Executive Vice President, AI Division at Ceva. "NeuPro-Nano enables a new generation of devices that can perceive, understand and act on real-world data locally, bringing practical Physical AI capabilities to power- and cost-constrained edge products."

Ceva-NeuPro-Nano is designed to bring efficient AI inference to cost- and power-constrained edge devices such as smart sensors, wearables, consumer electronics, industrial IoT systems and smart home products. Its compact architecture supports modern neural networks used for computer vision, audio and speech processing, sensor fusion and contextual awareness, enabling devices to intelligently process data from their surroundings while maintaining minimal silicon footprint and ultra-low power consumption.

NeuPro-Nano is part of Ceva's scalable NeuPro family of NPUs, which delivers efficient neural network acceleration across a wide range of edge AI workloads. Ceva's scalable NPU family supports AI inference processing capabilities ranging from tens of GOPS (Giga Operations Per Second) to hundreds of TOPS (Tera Operations Per Second), enabling efficient AI from ultra-low-power edge devices to high-performance AI systems. The NeuPro family is gaining strong market traction, with 10 customers licensing NeuPro technologies in 2025 across consumer IoT, industrial, automotive, infrastructure and PC applications, reflecting the growing demand for efficient on-device AI processing.

The embedded award is presented annually at the embedded world Exhibition & Conference and recognizes outstanding innovation across the embedded systems ecosystem, highlighting technologies that enable the next generation of intelligent connected devices.

About Ceva, Inc.
Ceva powers the Smart Edge, bridging the digital and physical worlds to bring AI-driven products to life. Our Ceva AI fabric portfolio of silicon and software IP enables devices to Connect, Sense, and Infer – the essential capabilities for the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB connectivity to scalable Edge AI NPUs, AI DSPs, sensor fusion processors and embedded software, Ceva provides the foundational IP for devices that connect, understand their environment, and act in real time.

With more than 20 billion devices shipped and trusted by 400+ customers worldwide, Ceva is the backbone of today's most advanced smart edge products - from AI-infused wearables and IoT devices to autonomous vehicles and 5G infrastructure. Our differentiated solutions deliver seamless integration into existing design flows, total flexibility to combine solutions based on design needs and ultra–low–power performance in minimal silicon footprint, helping customers accelerate development, reduce risk, and bring innovative products to market faster. As technology evolves toward Physical AI, Ceva's IP portfolio lays the foundation for systems that are always connected, contextually aware, and capable of intelligent, real-time decision-making.

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

SOURCE Ceva, Inc.

Posted by Defense World Staff on Apr 12th, 2026

Shares of Ceva, Inc. (NASDAQ:CEVA – Get Free Report) have received a consensus recommendation of “Moderate Buy” from the eight analysts that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell rating and seven have assigned a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $30.2857.

CEVA has been the subject of several analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Ceva in a report on Wednesday. TD Cowen started coverage on Ceva in a report on Friday, March 20th. They issued a “buy” rating and a $22.00 target price for the company. Oppenheimer reiterated an “outperform” rating and issued a $30.00 target price (down from $33.00) on shares of Ceva in a research note on Wednesday, February 18th. Rosenblatt Securities reiterated a “buy” rating and issued a $40.00 target price on shares of Ceva in a research note on Thursday, March 12th. Finally, Stifel Nicolaus started coverage on shares of Ceva in a research note on Tuesday, February 10th. They issued a “buy” rating and a $30.00 target price on the stock.

Get Our Latest Research Report on Ceva

Institutional Inflows and Outflows Hedge funds and other institutional investors have recently bought and sold shares of the company. Hantz Financial Services Inc. grew its stake in Ceva by 77.6% in the 4th quarter. Hantz Financial Services Inc. now owns 1,446 shares of the semiconductor company’s stock valued at $31,000 after buying an additional 632 shares during the last quarter. State of Wyoming acquired a new position in Ceva in the 3rd quarter valued at $39,000. Russell Investments Group Ltd. grew its stake in Ceva by 771.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 2,380 shares of the semiconductor company’s stock valued at $63,000 after buying an additional 2,107 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in Ceva by 422.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,731 shares of the semiconductor company’s stock valued at $60,000 after buying an additional 2,208 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Ceva by 47.4% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,758 shares of the semiconductor company’s stock valued at $145,000 after buying an additional 2,172 shares during the last quarter. 85.37% of the stock is currently owned by institutional investors and hedge funds.

Ceva Stock Up 1.7% Shares of CEVA opened at $20.59 on Friday. The company’s fifty day moving average is $20.13 and its 200-day moving average is $22.74. Ceva has a 12 month low of $17.02 and a 12 month high of $30.88. The firm has a market cap of $571.37 million, a price-to-earnings ratio of -47.88 and a beta of 1.53.

Ceva (NASDAQ:CEVA – Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The semiconductor company reported $0.18 EPS for the quarter, hitting the consensus estimate of $0.18. Ceva had a negative net margin of 9.71% and a negative return on equity of 3.15%. The company had revenue of $31.29 million for the quarter, compared to analyst estimates of $31.03 million. During the same quarter in the prior year, the business posted $0.11 EPS. Ceva’s quarterly revenue was up 7.1% on a year-over-year basis. As a group, research analysts predict that Ceva will post -0.12 earnings per share for the current fiscal year.

About Ceva (Get Free Report)

Ceva, Inc (NASDAQ: CEVA) is a leading licensor of signal processing IP cores and platforms that enable intelligent, connected devices. The company designs a broad portfolio of digital signal processing (DSP) and AI processors, software development toolkits and reference frameworks for applications ranging from 5G wireless communications and Bluetooth connectivity to audio, computer vision, sensor fusion and edge AI. Its solutions target a variety of end markets including smartphones, automotive, IoT devices, smart home, industrial automation and wearable electronics.

Founded in 1999 as a spin-off from DSP Group, Ceva has built its reputation on delivering modular, power-efficient IP that can be customized to meet stringent performance, area and power requirements.

Further Reading Five stocks we like better than Ceva

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, /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP for the Smart Edge, today announced that Sven-Christer Nilsson will retire from its Board of Directors and will not seek re-election at the Company's upcoming annual meeting of stockholders on June 2, 2026.

Mr. Nilsson has served as a member of Ceva's Board of Directors since November 2002. He also serves on the Audit Committee, Strategy Committee, and is the Chair of the Nomination and Governance Committee. Following more than two decades of dedicated service, Mr. Nilsson has informed the Board of his decision to retire.

Peter McManamon, Chairman of the Board of Ceva, commented, "On behalf of the entire Board of Directors and management team, I would like to extend our sincere thanks to Sven-Christer for his many years of dedicated service and commitment to Ceva. Over more than 20 years, Sven-Christer has provided invaluable leadership, deep industry insight and thoughtful guidance to the Board and management team. We are truly grateful for his contributions and wish him all the very best in his retirement."

Mr. Nilsson brought decades of leadership experience in the telecommunications industry, including senior executive roles at Ericsson, and has served on the boards of several public companies and institutions in Europe and the US.

About Ceva, Inc.
Ceva powers the Smart Edge, bridging the digital and physical worlds to bring AI-driven products to life. Our Ceva AI fabric portfolio of silicon and software IP enables devices to Connect, Sense, and Infer – the essential capabilities for the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB connectivity to scalable Edge AI NPUs, AI DSPs, sensor fusion processors and embedded software, Ceva provides the foundational IP for devices that connect, understand their environment, and act in real time.

With more than 20 billion devices shipped and trusted by 400+ customers worldwide, Ceva is the backbone of today's most advanced smart edge products - from AI-infused wearables and IoT devices to autonomous vehicles and 5G infrastructure. Our differentiated solutions deliver seamless integration into existing design flows, total flexibility to combine solutions based on design needs and ultra–low–power performance in minimal silicon footprint, helping customers accelerate development, reduce risk, and bring innovative products to market faster. As technology evolves toward Physical AI, Ceva's IP portfolio lays the foundation for systems that are always connected, contextually aware, and capable of intelligent, real-time decision-making.

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

SOURCE Ceva, Inc.

On April 27, 2026, CEVA Inc CEVA shares fell 6.0% today, closing at $27.14. The stock has experienced notable volatility over the past year, with a 52-week high of $30.88 and a low of $17.02.

GF Value™ verdict: The current price of $27.14 is 16.5% above the GF Value™ estimate of $23.30.GF Score™: CEVA has a GF Score™ of 75/100, indicating it is rated as above average.Most notable signal: In the last three months, insiders have bought $0.2 million worth of shares, showing positive sentiment from those within the company. Is CEVA Overvalued or Undervalued? The current market price of CEVA Inc at $27.14 exceeds the GF Value™ estimate of $23.30 by 16.5%, which categorizes the stock as overvalued according to GuruFocus' proprietary measure of intrinsic value. With CEVA being classified as 'modestly overvalued', this indicates a potential risk for investors, as the stock price may not be sustainable if the underlying business performance does not improve or if market conditions change. The margin of safety appears limited, making it critical for potential investors to assess the risks involved before making any commitments.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, market participants may want to consider the implications of investing in a stock that is trading above its calculated intrinsic value.

How Does CEVA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 54.2x 821.5x The current forward P/E ratio of 54.2x is significantly lower than CEVA's 5-year median P/E of 821.5x, indicating that the stock is trading below its historical valuation levels. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be overvalued relative to its intrinsic value, it is trading at a much more favorable P/E ratio compared to its historical averages.

What Does CEVA's GF Score™ Tell Us? Metric Rating GF Score™ 75/100 Financial Strength 8/10 Profitability 4/10 Growth 6/10 Valuation 6/10 Momentum 5/10 The GF Score™ of 75/100 indicates that CEVA is above average in terms of its overall quality as an investment. The company's Financial Strength rating of 8/10 is its strongest area, suggesting a solid balance sheet and good liquidity. However, the profitability rank of 4/10 is a weakness, indicating that while the company is financially stable, it may be struggling to convert revenues into profits effectively. The Growth and Valuation rankings at 6/10 suggest moderate growth prospects and a fair valuation compared to its peers, while the Momentum rank of 5/10 indicates average price performance over recent periods.

What Are Insiders Doing with CEVA Stock? In the last three months, insiders at CEVA have purchased $0.2 million in shares, with no reported selling activity. This trend of insider buying can be a positive signal, suggesting that those with the most intimate knowledge of the company's operations believe the stock is undervalued or that the company is poised for better performance in the future. The lack of selling during this period further reinforces the notion of confidence from the management team.

What This Means for Investors Based on the current analysis and the GF Value™ estimate, CEVA Inc appears to be overvalued at this time, with a significant premium over its calculated intrinsic value. This situation warrants caution for potential investors looking to enter at these price levels.

For the complete analysis, visit the CEVA Inc CEVA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CEVA's GF Score™?

CEVA has a GF Score™ of 75/100, indicating it is rated as above average in terms of quality and investment potential.

Is CEVA overvalued or undervalued?

CEVA is currently overvalued, as its market price of $27.14 exceeds the GF Value™ estimate of $23.30 by 16.5%.

What is CEVA's P/E ratio?

CEVA's forward P/E ratio is 54.2x, which is significantly lower than its 5-year median P/E of 821.5x, indicating a more favorable valuation than its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Pre-Market Stock Futures: Futures are trading higher as we get set to end what has been one of the wildest weeks on Wall Street in some time. After blowing through all-time highs for the umpteenth time on Wednesday, stocks started higher again on Thursday but started to sell off after the noon hour. While most of the upside for much of the week was related to the peace process with Iran and falling oil prices, that unraveled some on Thursday when a Chinese tanker was attacked near a key oil route, which was all it took to send oil prices higher again, and wake up the sellers who were noticeably absent much of the week as technology earnings blew away estimates. When it was all said and done on Thursday, all of the major indices finished the day lower, with the small-cap heavy Russell 2000 leading the way lower, closing down 1.67% at 2,838, while the Dow Jones Industrial Average traded lower by 0.63% to finish the day at 49,596. The S&P 500 closed Thursday at 7,337, down 0.38%, while the tech-loaded Nasdaq fared the best, closing down 0.13% at 25,806.

Treasury Bonds: After a slew of buyers showed up when Treasury yields hit 5% earlier this week on the longest maturities, the sellers had seen enough and returned, and yields across the Treasury curve were all higher on Thursday, with only the shortest T-bill maturities being bought. The attack on the Chinese ship and the spike in oil prices were seen as the provocateur, and likely, as with equities, some profit-taking was involved as well. By the close, the 30-year long bond was trading at 4.96%, while the 10-year note was last seen at 4.38%.

Oil and Gas: Prices were mixed across the energy complex on Thursday, but we didn’t see the drastic moves that have been part and parcel for energy trading since the start of the war with Iran. This comes as the U.S. Secretary of Energy noted that Iran has cut oil output by 400,000 barrels per day amid collapsing exports and a lack of storage.  Brent Crude closed trading on Thursday at $100.50, down 0.81%, while West Texas Intermediate was last seen at $95.20, up 0.13%. Natural gas also traded higher, finishing the session at $2.78, up 1.83%.

Gold: Gold continued its winning ways Thursday, following up on a series of recent strong showings. Morgan Stanley noted Thursday that it sees gold trading back to $5,200 by year-end, while many Wall Street analysts have year-end targets well above that. Gold was last seen Thursday at $4,712, up 0.47%, while Silver ended the day at $79.51, up 2.94%. 

Crypto: The cryptocurrency market experienced a widespread pullback, with major assets retreating after a solid rally earlier in the week. Bitcoin failed to sustain its push above $82,000, falling back to trade around $80,000–$81,000 during the day. After hitting a 3-month high on Wednesday, sellers returned, and the combination of weak equities and the ever-present geopolitical issues was cited as the cause. At 8 AM EDT, Bitcoin was trading at $80,220, while Ethereum was quoted at $2,295. 

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Friday May, 8, 2026.  

Upgrades: Devon Energy (NYSE: DVN | DVN Price Prediction) was upgraded to Buy from Hold at Jefferies, which raised the price target for the shares to $62 from $53. Fastly (NASDAQ: FSLY) was upgraded to Outperform from Market Perform at Raymond James, with a $23 target price. Qualcomm (NASDAQ: QCOM) was raised to Outperform from Neutral at Daiwa, with a $225 target price. Shake Shack (NYSE: SHAK) was upgraded to Buy from Hold at Stifel, which dropped the target price for the shares to $85 from $105. Tapestry (NYSE: TPR) was upgraded to Buy from Hold at Stifel, which raised the price target for the stock to $187 from $142. Downgrades: Deckers Outdoors (NYSE: DECK) was cut to Underweight from Equal Weight at Wells Fargo, with a $90 target price. Epam Systems (NYSE: EPAM) was downgraded to Neutral from Buy at Goldman Sachs, which slashed the target price for the stock to $110 from $215. HubSpot (NYSE: HUBS) was downgraded to Neutral from Overweight at Cantor Fitzgerald, which slashed the price target for the shares to $200 from $325. Nike (NYSE: NKE) was downgraded to Equal Weight from Overweight at Wells Fargo, which trimmed the target price for the stock to $45 from $55. Planet Fitness (NYSE: PLNT) was downgraded to Neutral from Outperform by KGI Securities, which has a $50.50 target price. Initiations: Applied Materials (NASDAQ: AMAT) was initiated with a Buy rating at HSBC with a $517 target price.  CEVA (NASDAQ: CEVA) was initiated with a Neutral rating at JPMorgan, with a $30 target price. ClearPoint Neuro (NASDAQ: CLPT) was resumed with a Buy rating at Stifel, with a $16 target price. Kopin (NASDAQ: KOPN) was assumed with a Buy rating at Canaccord, with a $5.50 target price. Satellogic (NASDAQ: SATL) was started with a Buy rating at Roth Capital, with a $10 target price.

Highlights strong licensing growth driven by integrated solutions and accelerating edge AI adoption

, /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP for the Smart Edge, today announced its financial results for the first quarter ended March 31, 2026.

First Quarter Highlights: *

Ceva, Inc. reported Q1 2026 revenue of $27M and non-GAAP diluted EPS of $0.04. 14 license agreements were concluded in the quarter, including 2 OEM and 3 multi-technology deals. Ceva-powered device shipments were 458M units, including a record 91M Wi-Fi units. Strategic wins included Bluetooth HDT with integrated RF, 5G NTN, UWB, and Auto AI entering production on the 2026 Toyota RAV4. For more information, view the infographic. Delivered total revenues of $27.0 million, up 11% year-over-year Licensing and related revenues of $17.8 million, up 18% year-over-year and the highest in three years Royalty revenues of $9.2 million, with smart edge royalties up 8% year-over-year, driven by record shipments in Wi-Fi, and strong contribution from cellular IoT, 5G infrastructure and automotive AI Signed 14 IP licensing agreements, including several multi-technology engagements with existing customers Secured a major customer win for Bluetooth High Data Throughput (HDT) solution, including Ceva's internally developed RF technology, demonstrating its system-level connectivity strategy Expanded customer engagements in 5G NTN and Ultra-Wideband, increasing value per design AI represented more than 20% of licensing and related revenues, with strong growth and key production milestones, including the Renesas R-Car V4H platform entering the 2026 Toyota RAV4, alongside a collaboration with NXP for its latest software-defined vehicle processors *Unless otherwise stated, all comparisons are to first quarter 2025.

Amir Panush, Chief Executive Officer of Ceva, commented, "We delivered a strong start to 2026, highlighted by our highest licensing and related revenues in three years and continued momentum across our connectivity and AI portfolios. Importantly, this quarter reflects the successful execution of our strategy to expand beyond discrete IP into more integrated, system-level solutions. A major Bluetooth HDT licensing agreement, including RF, alongside our expansion in 5G NTN and Ultra-Wideband, demonstrates how we are increasing our value per design and deepening customer engagement. We also saw encouraging trends in royalties, with continued strength across our smart edge markets, partially offset by softness in smartphones."

"In AI, our growth strategy and relentless focus on market-leading innovation are translating into production, with our technology integrated into leading automotive platforms and entering mass-volume production. With AI contributing over 20% of licensing and related revenues and a strong pipeline of engagements, we believe we are well positioned as the industry accelerates toward hybrid AI and the expansion of Physical AI at the edge."

Business and Market Highlights
During the first quarter, Ceva signed 14 IP licensing agreements across connectivity, AI, and satellite communications, including several multi-technology engagements aligned with its strategy to deliver more integrated, system-level solutions.

The company secured a major full-stack Bluetooth HDT solution license, marking a key milestone in expanding value per design and increasing royalty contribution, while helping customers reduce integration complexity and accelerate time-to-market. Additional wins included a Wi-Fi 7 design targeting consumer IoT, a Wi-Fi 6 / Bluetooth combo engagement with a leading edge-AI SoC platform provider, and multiple Bluetooth and Wi-Fi agreements.

Ceva also expanded into new connectivity domains, introducing its PentaG-NTN platform and progressing a satellite customer engagement to a more integrated baseband solution. In Ultra-Wideband, the company launched its next-generation platform and secured a new customer as adoption accelerates across industrial and automotive applications.

In AI, Ceva continued to expand its footprint with multiple licensing agreements and achieved a key production milestone, with its AI DSP and accelerator deployed in the Renesas R-Car V4H platform, now entering production in the 2026 Toyota RAV4. The company also announced a collaboration with NXP for its latest software-defined vehicle processors. AI represented more than 20% of licensing and related revenues in the quarter, reflecting strong growth and increasing contribution.

Across its markets, Ceva continues to see strong demand in IoT and AI-driven applications, with record Wi-Fi shipments and significant growth in cellular IoT. These trends, together with the shift toward more integrated, system-level solutions and increasing adoption of Bluetooth and Wi-Fi combo chips, are driving higher value per device and reinforcing the company's long-term royalty growth model.

Other first quarter financial data: *

GAAP gross margin was 86%, in line with last year GAAP operating loss was $5.1 million, as compared to a GAAP operating loss of $4.4 million GAAP net loss was $4.5 million, as compared to a GAAP net loss of $3.3 million GAAP diluted loss per share was $0.16, as compared to GAAP diluted loss per share of $0.14 Non-GAAP gross margin was 87%, in line with last year Non-GAAP operating income was $0.5 million, as compared to non-GAAP operating income of $0.3 million Non-GAAP net income and non-GAAP diluted earnings per share were $1.1 million and $0.04, respectively, compared with non-GAAP net income and non-GAAP diluted earnings per share of $1.4 million and $0.06, respectively *Unless otherwise stated, all comparisons are to first quarter 2025.

Yaniv Arieli, Chief Financial Officer of Ceva, added, "Our first quarter results reflect strong licensing execution and the continued progression toward higher-value, multi-technology engagements. This shift is driving improved economics per deal and strengthening the long-term royalty potential of our business. We also continue to see encouraging trends across our diversified end markets, particularly in IoT and AI-driven applications. We continue to manage the impact of a weaker U.S. dollar and are implementing measures to partially offset the resulting expenses."

Ceva Conference Call
On May 11, 2026, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

The conference call will be available via the following dial in numbers:

U.S. Participants: Dial 1-844-435-0316 (Access Code: Ceva) International Participants: Dial +1-412-317-6365 (Access Code: Ceva) The conference call will also be available live via webcast at the following link: https://app.webinar.net/N8PRLk4oljM. https://app.webinar.net/ePpLk12BRaDhttps://app.webinar.net/GvAklQElMmjPlease go to the web site at least fifteen minutes prior to the call to register.

For those who cannot access the live broadcast, a replay will be available by dialing +1 855-669-9658 or +1 412-317-0088 (access code: 4033535) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 18, 2026. The replay will also be available at Ceva's web site at www.ceva-ip.com.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements about Ceva's positioning for future growth and to serve as a foundational technology provider for intelligent, connected devices, licensing agreement wins, future industry demand, our market position for the future and future growth in the demand of our products, our forecast of financial measures for the following quarter and 2026, our long term targets and underlying assumptions, our future investments, expectations about future market, the success of our strategies and agreements, visibility into future revenue streams, and Ceva's focus on expense management and profitability improvement. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance; Ceva's ability to meet changing needs of end-users and evolving market demands; the lengthy sales cycle for IP and related solutions; Ceva's ability to diversify royalty streams and license revenues; geopolitical risks and instability, including the impact of tariffs and other trade measures and potential disruptions related to ongoing conflicts in the Middle East; and general market conditions and other risks relating to Ceva's business and industry, including, but not limited to, those that are described from time to time in our SEC filings. Ceva assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

About Ceva, Inc.
Ceva powers the Smart Edge, bridging the digital and physical worlds to bring AI-driven products to life. Our Ceva AI fabric portfolio of silicon and software IP enables devices to Connect, Sense, and Infer – the essential capabilities for the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB connectivity to scalable Edge AI NPUs, AI DSPs, sensor fusion processors and embedded software, Ceva provides the foundational IP for devices that connect, understand their environment, and act in real time.

With more than 21 billion devices shipped and trusted by 400+ customers worldwide, Ceva is the backbone of today's most advanced smart edge products - from AI-infused wearables and IoT devices to autonomous vehicles and 5G infrastructure. Our differentiated solutions deliver seamless integration into existing design flows, total flexibility to combine solutions based on design needs and ultra–low–power performance in minimal silicon footprint, helping customers accelerate development, reduce risk, and bring innovative products to market faster. As technology evolves toward Physical AI, Ceva's IP portfolio lays the foundation for systems that are always connected, contextually aware, and capable of intelligent, real-time decision-making.

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

CEVA, INC. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS – U.S. GAAP

U.S. dollars in thousands, except per share data

Three months ended

March 31,

2026

2025

Unaudited

Unaudited

Revenues:

Licensing and related revenues

$  17,820

$  15,042

Royalties

9,204

9,203

Total revenues

27,024

24,245

Cost of revenues

3,729

3,487

Gross profit

23,295

20,758

Operating expenses:

Research and development, net

19,837

17,609

Sales and marketing

3,766

3,449

General and administrative

4,660

3,933

Amortization of intangible assets

117

149

Total operating expenses

28,380

25,140

Operating loss

(5,085)

(4,382)

Financial income, net

1,877

2,100

Remeasurement of marketable equity securities

64

(54)

Loss before taxes on income

(3,144)

(2,336)

Income tax expense

1,315

991

Net loss

$  (4,459)

$  (3,327)

Basic and diluted net loss per share

$    (0.16)

$    (0.14)

Weighted-average shares used to compute net loss                                         

per share (in thousands):

Basic and diluted

27,678

23,764

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. dollars in thousands, except per share data

Three months ended

March 31,

2026

2025

Unaudited

Unaudited

GAAP net loss

$  (4,459)

$  (3,327)

Equity-based compensation expense included in cost of

revenues

182

159

Equity-based compensation expense included in research                               

and development expenses

2,863

2,466

Equity-based compensation expense included in sales

and marketing expenses

717

566

Equity-based compensation expense included in general

and administrative expenses

1,610

1,132

Amortization of intangible assets related to acquisition of

businesses

176

208

Costs associated with asset acquisition

61

144

Loss (income) associated with the remeasurement of

marketable equity securities

(64)

54

Non-GAAP net income

$  1,086

$  1,402

GAAP weighted-average number of Common Stock

used in computation of diluted net loss per share (in

thousands)

27,678

23,764

Weighted-average number of shares related to

outstanding stock-based awards (in thousands)

1,810

1,618

Weighted-average number of Common Stock used

in computation of diluted earnings per share, excluding the

above (in thousands)

29,488

25,382

GAAP diluted loss per share

$  (0.16)

$  (0.14)

Equity-based compensation expense

$   0.19

$   0.18

Amortization of intangible assets related to acquisition

of businesses 

$   0.01

$   0.01

Costs associated with asset acquisition

$   0.00

$   0.01

Non-GAAP diluted earnings per share

$   0.04

$   0.06

Three months ended

March 31,

2026

2025

Unaudited

Unaudited

GAAP operating loss

$  (5,085)

$  (4,382)

Equity-based compensation expense included in

cost of revenues

182

159

Equity-based compensation expense included in

research and development expenses

2,863

2,466

Equity-based compensation expense included in

sales and marketing expenses

717

566

Equity-based compensation expense included in

general and administrative expenses

1,610

1,132

Amortization of intangible assets related to acquisition

of businesses

176

208

Costs associated with asset acquisition

61

144

Total non-GAAP operating income

$      524

$      293

Three months ended

March 31,

2026

2025

Unaudited

Unaudited

GAAP gross profit

$  23,295

$  20,758

GAAP gross margin

86 %

86 %

Equity-based compensation expense included in

 cost of revenues

182

159

Amortization of intangible assets related to acquisition

of businesses

59

59

Total non-GAAP gross profit

23,536

20,976

Non-GAAP gross margin

87 %

87 %

Three months ended

March 31,

2026

2025

Unaudited

Unaudited

GAAP operating expenses

28,380

25,140

Equity-based compensation expense included in

research and development expenses

(2,863)

(2,466)

Equity-based compensation expense included in

sales and marketing expenses

(717)

(566)

Equity-based compensation expense included in

general and administrative expenses

(1,610)

(1,132)

Amortization of intangible assets related to acquisition

of businesses

(117)

(149)

Costs associated with asset acquisition

(61)

(144)

Total non-GAAP operating expenses

$  23,012

$  20,683

CEVA, INC. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

March 31,

December 31,

2026

2025 (*)

Unaudited

Unaudited

ASSETS

Current assets:

Cash and cash equivalents

$  21,367

$  40,586

Marketable securities and short-term bank deposits                                

194,326

181,397

Trade receivables, net

17,737

19,495

Unbilled receivables

31,135

29,860

Prepaid expenses and other current assets

16,297

13,498

Total current assets

280,862

284,836

Long-term assets:

Severance pay fund

7,225

7,530

Deferred tax assets, net

274

257

Property and equipment, net

9,010

7,054

Operating lease right-of-use assets

17,190

17,486

Investment in marketable equity securities

119

55

Goodwill

58,308

58,308

Intangible assets, net

868

1,044

Other long-term assets

14,370

11,686

Total assets

$ 388,226

$ 388,256

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Trade payables

$  2,388

$  2,418

Deferred revenues

2,968

3,496

Accrued expenses and other payables

19,224

21,026

Operating lease liabilities

2,794

1,743

Total current liabilities

27,374

28,683

Long-term liabilities:

     Accrued severance pay

7,428

7,690

Operating lease liabilities

14,083

14,388

Other accrued liabilities

1,158

1,037

Total liabilities

50,043

51,798

Stockholders' equity:

Common stock

28

28

Additional paid in-capital

343,298

337,966

Treasury stock

0

(1,591)

Accumulated other comprehensive income (loss)

(660)

79

Accumulated deficit

(4,483)

(24)

Total stockholders' equity

338,183

336,458

Total liabilities and stockholders' equity

$ 388,226

$ 388,256

(*) Derived from audited financial statements.

The Company believes that the presentation of non-GAAP measures in the press release is useful to investors in analyzing the results for the quarters ended March 31, 2026, and 2025 because the exclusion of the applicable expenses may provide a meaningful analysis of the Company's core operating results and comparison of quarterly results. Further, the Company believes it is useful for investors to understand how the expenses associated with the application of FASB ASC No. 718 are reflected in its statements of income. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP and are intended to provide additional insight into the Company's operations that, when viewed with its GAAP results and the accompanying reconciliation, offer a more complete understanding of factors and trends affecting the Company's business. The reconciliation of financial measures should not be viewed as a substitute for the Company's reported GAAP results.

A reconciliation of non-GAAP guidance to the corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to the Company's results computed in accordance with GAAP.

SOURCE Ceva, Inc.

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CEVA, Inc. (CEVA) Q1 2026 Earnings Call Transcript

On May 28, 2026, CEVA Inc CEVA shares rose 3.0% to $41.76. The stock has demonstrated significant price performance over the past year, with a remarkable year-to-date increase of 94.0% and a 52-week trading range between $17.02 and $42.67.

GF Value™ verdict: Current price of $41.76 is 85.2% above the GF Value™ of $22.55, indicating significant overvaluation. GF Score™ of 68/100, suggesting the stock is above average based on key financial metrics. Most notable signal: The momentum rank of 8/10 indicates strong recent price performance. Is CEVA Overvalued or Undervalued? CEVA Inc's current share price of $41.76 is well above its GF Value™ of $22.55, reflecting an 85.2% overvaluation according to GuruFocus' proprietary measure of intrinsic value. The GF Valuation label indicates that the stock is significantly overvalued, which presents a risk for potential investors. A significant margin of safety is absent, as the current price does not allow for much downside protection if the market corrects itself.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given CEVA's high valuation compared to its intrinsic value, there is a substantial risk of a price correction in the future, suggesting that the stock may be trading at an unsustainable level.

How Does CEVA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 821.5x 821.5x Forward P/E 78.8x - The current P/E ratio of CEVA Inc stands at an astronomical 821.5x, which aligns with its 5-year median P/E but diverges sharply from the forward P/E of 78.8x. This analysis suggests that CEVA is trading well above its historical valuation levels, reinforcing the GF Value™ verdict that the stock is overvalued.

What Does CEVA's GF Score™ Tell Us? Metric Rating GF Score™ 68/100 Financial Strength 7/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 8/10 CEVA's GF Score™ of 68/100 indicates that the stock is above average in terms of its financial health, although it shows mixed results across different categories. The strongest area appears to be financial strength with a rating of 7/10, while the weakest area is valuation, with a low score of 3/10, reflecting the overvaluation highlighted by the GF Value™ analysis. Additionally, the high momentum score of 8/10 indicates that the stock has shown strong price appreciation recently.

What Are Insiders Doing with CEVA Stock? In the last three months, there have been no insider transactions reported for CEVA Inc. This lack of insider activity may suggest a neutral sentiment among executives regarding the stock's current price and future prospects. Without recent buying or selling from insiders, it is challenging to gauge their confidence in the company's future performance.

What This Means for Investors Based on the GF Value™ analysis, CEVA Inc is currently overvalued. Potential investors should exercise caution given the significant disparity between the current stock price and its intrinsic value, as well as the associated risks of a possible market correction.

For the complete analysis, visit the CEVA Inc CEVA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CEVA's GF Score™?

CEVA's GF Score™ is 68/100, indicating that the stock is above average based on key financial metrics.

Is CEVA overvalued or undervalued?

CEVA is overvalued according to the GF Value™ analysis, with its current price significantly above its intrinsic value.

What is CEVA's P/E ratio?

CEVA's P/E ratio is currently 821.5x, which is well above its historical median and suggests a high valuation relative to earnings.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Director Buys BLCO 4,300 Shares for $77,000Bausch + Lomb (BLCO +0.20%), a global leader in eye health products and surgical devices, reported a recent insider buy amid ongoing sector activity.

Alfonso Eduardo, Director at Bausch + Lomb, reported an open-market purchase of 4,300 common shares for a total consideration of approximately $77,000, according to the SEC Form 4 filing.

Transaction summaryMetricValueShares traded4,300Transaction value~$77,000Post-transaction shares (direct)13,855Post-transaction shares (indirect)0Post-transaction value (direct ownership)~$255,000Transaction value based on SEC Form 4 weighted average purchase price ($17.90); post-transaction value based on March 2, 2026 market close ($18.41). Bausch + Lomb's matching share program granted an additional 4,300 restricted share units at no cost in connection with this purchase, vesting in equal thirds on the first, second, and third anniversaries of the grant date, subject to continued board service.

Key questionsWhat does this purchase indicate about Alfonso Eduardo's ownership strategy?
The open-market purchase of 4,300 shares at $17.90 triggered an equal grant of 4,300 matching restricted share units, bringing Alfonso's total holdings from roughly 5,255 to 13,855 shares. As a director who joined January 1, 2026, he is required to hold $400,000 in equity within five years — this transaction brings him to roughly $248,000 toward that threshold. He paid for half out of pocket; the rest vests over three years."Were any derivative securities or indirect entities involved in this transaction?
The filing includes two transactions: an open-market purchase of 4,300 shares at $17.90, and a matching grant of 4,300 restricted share units at no cost, awarded automatically under the company's matching share program. No options, trusts, or indirect entities were involved. All activity is direct.Was this purchase executed at a premium or discount to recent market prices?
The shares were acquired at $17.90, a small discount to the March 2 closing price of $18.41. The timing also coincides with Alfonso building toward a mandatory $400,000 director ownership requirement, which adds context to the price level at which he chose to trigger the matching program.Company overviewMetricValuePrice (as of market close March 23, 2026)$15.84Market capitalization$5.61 billionRevenue (TTM)$5.10 billionNet income (TTM)($360.00 million)* 1-year performance metrics, if present, are calculated using full year figures provided by the Q4 and full year 2025 earnings press release as the reference date.

Company snapshotBausch + Lomb offers a broad portfolio of vision care products, ophthalmic pharmaceuticals, and surgical devices, including contact lenses, lens care solutions, over-the-counter eye health products, and surgical equipment for eye procedures.BLCO generates revenue through the sale of branded and generic eye health products to healthcare providers, clinics, and direct-to-consumer channels globally.The company serves ophthalmologists, optometrists, surgical centers, and end consumers seeking vision correction and eye health solutions worldwide.Bausch + Lomb is a global leader in eye health, operating across three key segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The company leverages a diversified product portfolio and extensive distribution network to serve both healthcare professionals and consumers. Its scale, established brand, and focus on innovation position it competitively within the medical instruments and supplies industry.

What this transaction means for investorsEduardo wrote a $77,000 check for company stock earlier this month. Bausch + Lomb then handed him the same number of shares again for free — that's the matching program at work. Buy on the open market, get an equal grant of restricted units vesting over three years. It's worth understanding the full context before reading too much into it. Alfonso joined the board on January 1, 2026 and is working toward a mandatory director ownership threshold. Part of what's happening here is a new director using the matching program to build that position efficiently. The matching program is designed to help with exactly that.That doesn't make it meaningless. He still put up real cash. He can't flip the matched units either — they vest in thirds over three years, so he has to stick around for the payoff. That's still the kind of alignment retail investors should want to see from a board member. BLCO operates in eye health, a sector with steady long-term demand. A new director building a required stake through the matching program is standard governance. Whether it signals anything beyond that is harder to say but worth…keeping an eye on.

Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

VAUGHAN, Ontario--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, will release its first-quarter financial results on Wednesday, April 29, 2026. The company will host a conference call and live webcast at 8 a.m. ET to discuss the results and provide a business update. All materials will be made available on the Investor Relations section of the Bausch + Lomb website prior to the start of the.