ARM (NASDAQ:ARM) Updates Q3 2026 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its third quarter 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.370-0.450 for the period, compared to the consensus EPS estimate of 0.270. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.1 billion.

ARM Stock Down 3.7%

Shares of NASDAQ:ARM traded down $5.87 during midday trading on Friday, reaching $152.38. The company’s stock had a trading volume of 5,788,375 shares, compared to its average volume of 5,322,980. The firm has a market cap of $160.99 billion, a price-to-earnings ratio of 195.36, a price-to-earnings-growth ratio of 10.06 and a beta of 4.11. The business has a 50 day moving average price of $155.10 and a 200 day moving average price of $144.07. ARM has a 1 year low of $80.00 and a 1 year high of $183.16.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.33 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.06 billion. ARM had a return on equity of 15.39% and a net margin of 18.81%.The firm’s revenue was up 34.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. Sell-side analysts anticipate that ARM will post 0.9 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ARM shares. Cowen reissued a “buy” rating on shares of ARM in a research note on Thursday. The Goldman Sachs Group began coverage on ARM in a research note on Thursday, July 10th. They set a “neutral” rating and a $160.00 price target for the company. TD Cowen increased their target price on shares of ARM from $175.00 to $190.00 and gave the stock a “buy” rating in a research report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research report on Wednesday, October 8th. Finally, Evercore ISI raised their price objective on ARM from $173.00 to $178.00 and gave the company an “outperform” rating in a research report on Thursday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $178.55.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Schnieders Capital Management LLC. raised its stake 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 purchasing an additional 200 shares in the last quarter. FWL Investment Management LLC bought a new stake in shares of ARM in the 2nd quarter valued at approximately $34,000. Main Street Financial Solutions LLC raised its position in shares of ARM by 3.7% during the 2nd quarter. Main Street Financial Solutions LLC now owns 8,171 shares of the company’s stock valued at $1,322,000 after acquiring an additional 289 shares in the last quarter. WFA of San Diego LLC bought a new position in ARM during the second quarter worth $49,000. Finally, IHT Wealth Management LLC boosted its holdings in ARM by 14.2% in the second quarter. IHT Wealth Management LLC now owns 2,974 shares of the company’s stock worth $481,000 after purchasing an additional 370 shares during the period. 7.53% of the stock is currently owned by institutional investors.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.