Arteris (NASDAQ:AIP) Releases Earnings Results, Beats Expectations By $0.02 EPS

Arteris (NASDAQ:AIP) issued its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.02, FiscalAI reports. Arteris had a negative return on equity of 295.96% and a negative net margin of 46.70%. The business 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 Price Performance

Arteris stock opened at $17.80 on Friday. The stock has a fifty day moving average price of $21.39 and a two-hundred day moving average price of $24.94. Arteris has a 52-week low of $12.06 and a 52-week high of $50.26. The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 0.03.

Key Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris reported Q3 revenue of $25.8 million, above the roughly $24.6 million consensus estimate. Its loss of $0.02 per share was narrower than analysts expected and improved from a $0.09 loss a year earlier. Arteris Q3 results and guidance
• Positive Sentiment: The company forecast Q4 revenue of $25.7 million to $26.7 million and FY2026 revenue of $98.5 million to $99.5 million. It also set a $103 million to $107 million target for annual contract value plus royalties, offering investors visibility into expected business activity. Arteris FY2026 forecast
• Positive Sentiment: Arteris surpassed 1,000 customer chip-design starts. The company says AI accounted for about half of its recent projects, pointing to potential demand from a fast-growing market. Arteris surpasses 1,000 customer design starts
• Negative Sentiment: Despite the improvement and estimate beat, Arteris remains loss-making, so investors may continue to watch its path toward profitability. Arteris Q3 loss and revenue results

Insider Activity at Arteris

In related news, CEO K Janac sold 100,000 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $23.82, for a total transaction of $2,382,000.00. Following the transaction, the chief executive officer directly owned 8,129,071 shares of the company’s stock, valued at approximately $193,634,471.22. This represents a 1.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder Bayview Legacy, Llc sold 100,000 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $23.82, for a total transaction of $2,382,000.00. Following the completion of the sale, the insider owned 8,129,071 shares of the company’s stock, valued at approximately $193,634,471.22. The trade was a 1.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 478,631 shares of company stock worth $10,823,565 in the last three months. Insiders own 23.30% of the company’s stock.

Analysts Set New Price Targets

AIP has been the subject of several research analyst reports. Jefferies Financial Group cut their price objective on Arteris from $50.00 to $40.00 and set a “buy” rating for the company in a research report on Friday. Weiss Ratings upgraded shares of Arteris from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, August 21st. Roth Capital initiated coverage on Arteris in a research note on Tuesday, August 4th. They set a “buy” rating and a $40.00 price objective for the company. Craig Hallum began coverage on Arteris in a research note on Monday, September 21st. They issued a “buy” rating and a $30.00 price target for the company. Finally, Oppenheimer began coverage on Arteris in a research note on Thursday, July 16th. They issued an “outperform” rating and a $40.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Arteris has a consensus rating of “Moderate Buy” and an average price target of $35.86.

Arteris Company Profile

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.