Arteris (NASDAQ:AIP) Posts Quarterly Earnings Results

Arteris (NASDAQ:AIP) issued its earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.02, FiscalAI reports. Arteris had a negative net margin of 46.70% and a negative return on equity of 295.96%. The company had revenue of $25.77 million during the quarter, compared to analysts’ expectations of $24.57 million.

Here are the key takeaways from Arteris’ conference call:

• Arteris reported record Q3 revenue of $25.8 million, up 48% year over year, and record ACV plus royalties of $104 million, up 39%; both exceeded the top end of guidance. Trailing 12-month royalties rose 71% to a record $9.4 million, while RPO reached a record $135 million.
• The company raised its full-year 2026 guidance for revenue to $98.5 million–$99.5 million, ACV plus royalties to $103 million–$107 million, and non-GAAP operating results to a loss of $7.2 million–$9.2 million. Q4 guidance includes a non-GAAP operating result ranging from a $0.9 million loss to $1.1 million in income.
• Management cited strong demand across AI infrastructure, automotive, and physical AI, including expanded business with a hyperscaler, two large semiconductor companies, and an automotive OEM. Chiplet designs are about 10% of design starts today, and management expects that share to reach roughly 30%–35% over the next two to three years, though that outlook is forward-looking.
• Arteris remains loss-making: Q3 non-GAAP operating loss was $1.2 million and GAAP operating loss was $11.3 million. Free cash flow was negative $2.1 million, which management attributed mainly to the timing of customer payments; the company ended the quarter with $120 million in cash and investments and no financial debt.

Arteris Stock Performance

Shares of AIP traded up $0.32 during mid-day trading on Friday, hitting $16.25. The company’s stock had a trading volume of 231,366 shares, compared to its average volume of 714,152. The firm has a market capitalization of $798.47 million, a PE ratio of -18.68 and a beta of 1.93. Arteris has a one year low of $12.06 and a one year high of $50.26. The stock’s 50-day moving average is $21.51 and its two-hundred day moving average is $24.94. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.57 and a current ratio of 1.57.

Analyst Upgrades and Downgrades

AIP has been the topic of a number of analyst reports. Oppenheimer began coverage on Arteris in a research report on Thursday, July 16th. They set an “outperform” rating and a $40.00 target price on the stock. Craig Hallum initiated coverage on Arteris in a research report on Monday, September 21st. They set a “buy” rating and a $30.00 price objective for the company. Rosenblatt Securities restated a “buy” rating and issued a $38.00 price target on shares of Arteris in a research note on Friday, August 7th. TD Cowen cut their price objective on shares of Arteris from $40.00 to $25.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Finally, Roth Capital began coverage on Arteris in a research report on Tuesday, August 4th. They set a “buy” rating and a $40.00 price target on the stock. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Arteris presently has an average rating of “Moderate Buy” and an average price target of $37.29.

Insider Transactions at Arteris

In other Arteris news, VP Paul L. Alpern sold 6,003 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $24.24, for a total transaction of $145,512.72. Following the sale, the vice president directly owned 61,082 shares of the company’s stock, valued at approximately $1,480,627.68. This represents a 8.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO K Janac sold 11,452 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $24.27, for a total transaction of $277,940.04. Following the sale, the chief executive officer directly owned 154,337 shares of the company’s stock, valued at approximately $3,745,758.99. The trade was a 6.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 478,631 shares of company stock valued at $10,823,565. Company insiders own 23.30% of the company’s stock.

More Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Q3 revenue was $25.77 million, above the roughly $24.6 million analyst estimate, while the loss of $0.02 per share was narrower than expected and improved from a $0.09 loss a year earlier. The earnings beat may support investor confidence. Zacks Q3 results
• Positive Sentiment: Arteris said it surpassed 1,000 customer silicon design starts, and a report noted that AI accounted for about half of its recent projects. This points to adoption of its interconnect technology in a growing AI-related market. Design-start announcement
• Neutral Sentiment: For Q4, Arteris estimates revenue of $25.7 million to $26.7 million; its updated FY2026 revenue forecast is $98.5 million to $99.5 million, with an ACV-plus-royalties target of $103 million to $107 million. These figures provide forward visibility, but the articles do not give analyst estimates to indicate whether the outlook is a beat or a miss. FY2026 forecast
• Negative Sentiment: Despite the narrower quarterly loss, Arteris remains unprofitable, with a reported negative net margin. Continued losses may temper the positive effect of the revenue beat and growth signals.

About Arteris

Arteris, Inc is a semiconductor intellectual property (IP) company that provides technology used to design and integrate complex systems-on-chip (SoCs). Its products help semiconductor and system developers connect, manage and verify the various processing, memory and specialized functional components incorporated into modern chips.

The company’s portfolio includes network-on-chip (NoC) interconnect and semiconductor IP solutions, including its FlexNoC interconnect technology, Ncore cache-coherent interconnect IP and CodaCache products.