ARM (NASDAQ:ARM) Updates Q4 2026 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its fourth quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.540-0.620 for the period, compared to the consensus estimate of 0.490. The company issued revenue guidance of $1.4 billion-$1.5 billion, compared to the consensus revenue estimate of $1.4 billion.

Analyst Ratings Changes

ARM has been the topic of a number of recent analyst reports. Raymond James Financial began coverage on ARM in a research report on Friday, November 21st. They issued a “hold” rating on the stock. Bank of America reissued a “neutral” rating and issued a $120.00 price objective on shares of ARM in a research note on Tuesday, January 13th. KeyCorp reiterated an “overweight” rating on shares of ARM in a report on Thursday. Barclays upped their target price on shares of ARM from $115.00 to $165.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Finally, Wells Fargo & Company decreased their price objective on ARM from $160.00 to $150.00 and set an “overweight” rating for the company in a report on Thursday. Seventeen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, ARM presently has an average rating of “Moderate Buy” and an average target price of $160.81.

ARM Price Performance

Shares of NASDAQ ARM traded up $7.36 during trading on Thursday, hitting $112.26. The stock had a trading volume of 19,703,911 shares, compared to its average volume of 7,279,985. ARM has a 12 month low of $80.00 and a 12 month high of $183.16. The company has a market capitalization of $118.60 billion, a PE ratio of 143.92, a PEG ratio of 6.26 and a beta of 4.35. The firm has a fifty day moving average of $117.81 and a two-hundred day moving average of $138.52.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 15.03% and a net margin of 18.81%.The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the prior year, the firm earned $0.39 EPS. The company’s revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. On average, equities analysts expect that ARM will post 0.9 earnings per share for the current fiscal year.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat consensus — ARM reported $0.43 EPS on $1.24B revenue, topping estimates and showing strong year‑over‑year revenue growth, which helped lift sentiment. Why Arm Holdings Stock Was Climbing Today
• Positive Sentiment: Company guided Q4 revenue and EPS above Street expectations, citing continued demand for Arm designs in AI datacenters — this forward guidance supports a bullish view on AI-related revenue. Arm forecasts quarterly revenue above estimates
• Positive Sentiment: Analyst upgrades — New Street Research upgraded ARM to a “buy,” adding to bullish analyst attention that can support near‑term buying pressure. New Street upgrades ARM
• Neutral Sentiment: Mixed analyst price‑target moves — Several firms trimmed price targets (Wells Fargo, Mizuho, Rosenblatt) but many maintained overweight/outperform/buy ratings, leaving overall analyst tone constructive but more conservative on valuation. Analyst price-target changes
• Negative Sentiment: Licensing revenue narrowly missed estimates and shares fell in after‑hours trading on the miss — licensing is a high‑margin, outcome‑sensitive line that investors watch closely for sustainability of profits. Shares plunge after licensing miss
• Negative Sentiment: Smartphone market headwinds — memory shortages and OEM production cuts could constrain handset volumes and smartphone royalty growth next year, a direct risk to ARM’s royalty revenue stream. Memory shortage pressures chip makers
• Negative Sentiment: Market reaction to guidance and margins was mixed — some commentary called the Q4 guide “in‑line,” which tempered enthusiasm despite top‑line beats. Arm guidance called in-line

Hedge Funds Weigh In On ARM

A number of hedge funds and other institutional investors have recently made changes to their positions in ARM. Amundi boosted its holdings in shares of ARM by 24.8% in the first quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after acquiring an additional 2,345 shares during the period. Empowered Funds LLC lifted its holdings in ARM by 28.8% during the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock worth $522,000 after buying an additional 1,094 shares during the period. Schnieders Capital Management LLC. lifted its holdings in shares of ARM by 9.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after buying an additional 200 shares during the period. Bank of Nova Scotia acquired a new position in shares of ARM during the 2nd quarter worth approximately $556,000. Finally, State Street Corp lifted its holdings in ARM by 14.7% during the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after buying an additional 56,656 shares in the last quarter. 7.53% of the stock is owned by institutional investors.

ARM Company Profile

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.