ARM (NASDAQ:ARM) Issues Q2 2027 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its second quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.430-0.510 for the period, compared to the consensus estimate of 0.390. The company issued revenue guidance of $880.0M-$1.9 billion, compared to the consensus revenue estimate of $1.3 billion.

ARM Stock Performance

NASDAQ:ARM traded up $7.58 during trading hours on Friday, reaching $249.12. The company’s stock had a trading volume of 3,020,737 shares, compared to its average volume of 8,566,151. The company has a market capitalization of $266.08 billion, a P/E ratio of 258.29, a price-to-earnings-growth ratio of 6.99 and a beta of 3.76. The stock has a 50 day moving average price of $329.98 and a two-hundred day moving average price of $212.71. ARM has a 12 month low of $100.02 and a 12 month high of $452.70.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.56%. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm posted $0.35 earnings per share. The company’s revenue was up 22.4% compared to the same quarter last year. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. As a group, analysts predict that ARM will post 1.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Morgan Stanley upped their price target on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday. UBS Group dropped their price objective on ARM from $360.00 to $320.00 and set a “buy” rating for the company in a research note on Thursday. KeyCorp increased their target price on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company reduced their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus target price of $285.33.

Insider Buying and Selling at ARM

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at $4,765,414.50. This trade represents a 48.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the sale, the insider directly owned 5,543 shares in the company, valued at $1,159,318.45. This trade represents a 81.45% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 216,049 shares of company stock worth $52,101,605.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: ARM reported fiscal Q1 revenue of $1.29 billion, up 22.4% year over year and above the roughly $1.26 billion consensus estimate. Adjusted EPS of $0.45 also exceeded expectations of $0.40. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Management issued fiscal Q2 EPS guidance of $0.43–$0.51, above the approximately $0.39 analyst consensus, while forecasting revenue ahead of expectations. The outlook reflects strong demand for ARM-based processors used in AI data centers and advanced computing.
• Positive Sentiment: Data-center royalty revenue reportedly doubled, and demand for ARM’s AI-focused and AGI CPU roadmap remains robust. Citi reiterated a Buy rating and $300 price target, while Needham reaffirmed its Buy rating with a $255 target. Arm remains key AI infrastructure beneficiary
• Positive Sentiment: Several analysts remain constructive despite trimming targets: TD Cowen lowered its target to $350 but kept a Buy rating, RBC reduced its target to $340 but retained Outperform, and Rosenblatt cut its target to $250 while maintaining Buy.
• Neutral Sentiment: The results reinforce ARM’s position as a long-term AI infrastructure beneficiary, but the company’s valuation is demanding. Analysts and investors are weighing substantial AI growth potential against execution and supply-chain risks.
• Negative Sentiment: Smartphone weakness and memory-price pressure are weighing on royalty growth, with fiscal Q2 royalty growth reportedly guided at about 13%. Softer handset demand could offset some of the gains from data centers and AI.
• Negative Sentiment: Morgan Stanley raised its price target to $212 but maintained an Equal Weight rating, implying downside from recent levels. The sharp reductions in several previously high targets also signal concerns that expectations had become excessive.

Institutional Investors Weigh In On ARM

Institutional investors have recently added to or reduced their stakes in the company. Amundi grew its holdings in ARM by 24.8% during 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 shares of ARM by 28.8% during the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. boosted its position 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 during the period. Bank of Nova Scotia purchased a new position in ARM in the 2nd quarter worth about $556,000. Finally, State Street Corp raised 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 during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.