Arteris (NASDAQ:AIP) Posts Earnings Results, Misses Expectations By $0.06 EPS

Arteris (NASDAQ:AIP) announced its quarterly earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.06), FiscalAI reports. The firm had revenue of $24.13 million for the quarter, compared to analyst estimates of $23.48 million.

Here are the key takeaways from Arteris’ conference call:

• Record quarterly performance: Revenue reached $24.1 million, up 46% year over year, while ACV plus royalties rose 44% to a record $99.5 million and RPO reached $135 million.
• Arteris reported strong demand tied to AI and high-performance computing, including major wins with a hyperscale cloud company and a semiconductor design house developing custom ASICs and chiplets for data centers.
• The company raised its full-year 2026 revenue outlook to $95 million-$98 million and expects to achieve non-GAAP operating profitability as early as the fourth quarter; it also generated $8.6 million of free cash flow in the quarter.
• Arteris completed an ATM offering that raised approximately $72 million, increasing liquidity to $123 million with no debt, although the equity issuance may create shareholder dilution; the proceeds will fund product investment, support, and acquisitions.
• Higher French payroll taxes on RSU vesting, increased sales commissions, and lower-margin government security work pressured operating results, while royalty growth experienced a temporary sequential slowdown due to customer logistical and supply-chain issues.

Arteris Stock Down 5.8%

Arteris stock opened at $29.78 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.73 and a current ratio of 0.73. Arteris has a fifty-two week low of $8.42 and a fifty-two week high of $50.26. The stock has a 50-day simple moving average of $35.94 and a 200-day simple moving average of $26.19. The company has a market capitalization of $1.37 billion, a P/E ratio of -34.23 and a beta of 1.96.

Trending Headlines about Arteris

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Jefferies upgraded Arteris from Hold to Buy and assigned a $50 price target, indicating substantial potential upside. Jefferies upgrade
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and raised or maintained a $38 price target, while Roth Capital also initiated coverage with a Buy rating and a $40 target. The endorsements strengthen the bullish analyst backdrop for AIP. Rosenblatt rating Roth Capital rating
• Positive Sentiment: Arteris projected third-quarter revenue of $24 million to $25 million and updated full-year 2026 revenue guidance to $95 million to $98 million. Both ranges exceed consensus estimates of approximately $23.5 million and $94.2 million, respectively. Arteris results and guidance
• Neutral Sentiment: The company appointed Saurabh Sinha as chief financial officer and chief accounting officer, effective September 8, 2026. The leadership change may improve financial oversight, but investors may initially monitor the transition. CFO appointment
• Negative Sentiment: Second-quarter adjusted results showed a loss of $0.10 per share, worse than the expected loss of roughly $0.04-$0.05. Revenue of $24.13 million exceeded estimates, but the larger-than-expected loss likely drove selling pressure. Arteris second-quarter results
• Negative Sentiment: Recent filings disclosed sales by CEO K. Charles Janac, director Saiyed Atiq Raza, major shareholder Bayview Legacy and Vice President Paul Alpern. The concentration of insider selling may weigh on sentiment, although insiders retain significant positions.

Insider Buying and Selling

In related news, Director Saiyed Atiq Raza sold 70,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $30.01, for a total value of $2,100,700.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Bayview Legacy, Llc sold 26,106 shares of Arteris stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.97, for a total value of $834,608.82. Following the transaction, the insider directly owned 8,329,071 shares of the company’s stock, valued at $266,280,399.87. This trade represents a 0.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,498,949 shares of company stock valued at $52,200,293 over the last 90 days. Insiders own 23.30% of the company’s stock.

Institutional Investors Weigh In On Arteris

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Intech Investment Management LLC increased its stake in shares of Arteris by 9.3% in the fourth quarter. Intech Investment Management LLC now owns 13,540 shares of the company’s stock valued at $210,000 after purchasing an additional 1,148 shares during the period. Deutsche Bank AG grew its stake in shares of Arteris by 7.7% in the fourth quarter. Deutsche Bank AG now owns 21,159 shares of the company’s stock worth $328,000 after purchasing an additional 1,504 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Arteris by 75.0% during the third quarter. BNP Paribas Financial Markets now owns 6,053 shares of the company’s stock valued at $61,000 after purchasing an additional 2,595 shares during the period. Public Employees Retirement System of Ohio increased its holdings in shares of Arteris by 12.3% during the third quarter. Public Employees Retirement System of Ohio now owns 23,913 shares of the company’s stock valued at $242,000 after purchasing an additional 2,613 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its holdings in Arteris by 20.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,453 shares of the company’s stock worth $271,000 after purchasing an additional 2,955 shares during the period. 64.36% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on AIP shares. Weiss Ratings lowered shares of Arteris from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, May 13th. Rosenblatt Securities reaffirmed a “buy” rating and set a $38.00 price objective on shares of Arteris in a research report on Friday. Roth Capital began coverage on shares of Arteris in a research report on Tuesday. They set a “buy” rating and a $40.00 price objective for the company. Jefferies Financial Group upgraded shares of Arteris from a “hold” rating to a “buy” rating and set a $50.00 target price for the company in a report on Friday. Finally, TD Cowen boosted their target price on Arteris from $22.00 to $40.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. Five research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $41.00.

About Arteris

Arteris, Inc is a fabless semiconductor intellectual property (IP) company specializing in on-chip interconnect solutions and system IP for advanced integrated circuits. The company’s core products include its FlexNoC network-on-chip (NoC) fabrics, Ncore cache coherent interconnect IP, and CodaCache memory subsystem IP. These technologies enable semiconductor and systems companies to design scalable, energy-efficient chips for applications ranging from automotive and artificial intelligence (AI) to 5G communications and high-performance computing.

Founded in 2003 and headquartered in Santa Clara, California, Arteris serves a global customer base across North America, Europe, and Asia.