ARM (NASDAQ:ARM) Issues Q4 2026 Earnings Guidance

ARM (NASDAQ:ARM) updated its fourth quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 0.540-0.620 for the period, compared to the consensus EPS 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.

ARM Price Performance

Shares of NASDAQ ARM traded up $12.88 during mid-day trading on Friday, hitting $123.76. The company had a trading volume of 11,798,760 shares, compared to its average volume of 7,678,503. The business’s 50-day simple moving average is $117.37 and its 200 day simple moving average is $138.33. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The company has a market capitalization of $130.75 billion, a PE ratio of 165.49, a price-to-earnings-growth ratio of 6.28 and a beta of 4.35.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.36%. The firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the previous year, the firm posted $0.39 earnings per share. 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, analysts expect that ARM will post 0.9 EPS for the current year.

Analyst Upgrades and Downgrades

ARM has been the subject of several analyst reports. Barclays raised their price target on ARM from $115.00 to $165.00 and gave the stock an “overweight” rating in a research note on Thursday, November 6th. Jefferies Financial Group set a $170.00 target price on shares of ARM in a report on Thursday. Susquehanna raised shares of ARM from a “neutral” rating to a “positive” rating and set a $150.00 price target on the stock in a research note on Wednesday, January 21st. Oddo Bhf set a $170.00 price objective on shares of ARM in a research note on Monday, January 5th. Finally, Royal Bank Of Canada reduced their target price on ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a report on Thursday. Sixteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $160.81.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 beat on top and bottom lines — revenue jumped ~26% year-over-year and EPS topped Street estimates, reinforcing the narrative of durable growth driven by AI demand. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Management set fourth-quarter guidance above consensus (EPS range and revenue outlook), signaling continued AI-driven demand that supports revenue trajectory. Arm Holdings forecasts quarterly revenue above estimates on AI chip demand
• Positive Sentiment: CEO Rene Haas highlighted rapidly expanding data-center business (calling it “exploding”), underscoring Arm’s growing exposure to higher-margin AI compute markets beyond handsets. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Analysts responded with praise and selective upgrades (New Street upgraded to buy; several firms reaffirmed overweight/buy ratings even while trimming targets), providing support to the rally. New Street Research upgrade / analyst notes
• Neutral Sentiment: Arm announced an “Arm Everywhere” event in March to showcase AI and compute strategy — a potential catalyst for product/partner updates but no immediate financial effect. Arm to Host ‘Arm Everywhere’ Event and Webcast
• Neutral Sentiment: Full earnings materials and call transcript are available for detail — useful for investors digging into margin drivers, licensing mix and segment trends. Arm Q3 – Results – Earnings Call Presentation
• Negative Sentiment: Licensing revenue narrowly missed estimates, triggering after-hours selling and concern over near-term handset royalty growth — a key risk if smartphone OEMs slow buy plans. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Broader industry headwinds: reports of a memory shortage and OEM pullbacks (affecting Qualcomm and others) raise the risk that smartphone-related demand and licensing could disappoint. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint
• Negative Sentiment: Multiple analysts trimmed price targets in the earnings aftermath (even while keeping positive ratings), signaling reduced near-term upside expectations. Analyst price target actions (Benzinga summary)

Institutional Investors Weigh In On ARM

Hedge funds have recently modified their holdings of the business. CIBC Bancorp USA Inc. acquired a new stake in ARM in the 3rd quarter worth about $708,000. Sunbelt Securities Inc. raised its position in shares of ARM by 61.4% in the third quarter. Sunbelt Securities Inc. now owns 4,495 shares of the company’s stock valued at $636,000 after buying an additional 1,710 shares in the last quarter. Captrust Financial Advisors boosted its stake in shares of ARM by 15.4% in the third quarter. Captrust Financial Advisors now owns 11,804 shares of the company’s stock valued at $1,670,000 after buying an additional 1,572 shares during the period. Coldstream Capital Management Inc. increased its stake in ARM by 23.7% during the 3rd quarter. Coldstream Capital Management Inc. now owns 2,545 shares of the company’s stock worth $360,000 after acquiring an additional 488 shares during the period. Finally, Reynders McVeigh Capital Management LLC grew its holdings in shares of ARM by 1.0% during the 3rd quarter. Reynders McVeigh Capital Management LLC now owns 138,943 shares of the company’s stock worth $19,659,000 after purchasing an additional 1,345 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.