Ceva shares surge 13.69% premarket after Q3 revenue beats estimates, driven by AI licensing and strategic agreements.

Ceva, Inc. surged 13.69% in premarket trading following the release of its Q3 2025 financial results, which highlighted strong revenue growth and strategic AI licensing milestones. The company reported $28.4 million in revenue, up 11% sequentially and 4% year-over-year, driven by AI processor licensing contributing one-third of licensing revenue. Strategic wins included a portfolio license for its NeuPro NPU family with Microchip and three new AI DSP agreements, expanding its footprint in automotive and consumer markets. Non-GAAP gross margin improved to 89%, and CEO Amir Panush emphasized robust licensing execution and royalty growth. While GAAP results showed a $0.10 loss per share, non-GAAP diluted earnings of $0.11 exceeded some estimates, signaling operational efficiency and future revenue visibility. The stock’s sharp rise reflects investor optimism over Ceva’s AI expansion, key partnerships, and improved financial performance.