ARM (NASDAQ:ARM) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

ARM (NASDAQ:ARM) issued its earnings results on Wednesday. The company reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.02, FiscalAI reports. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.47 billion. During the same period in the previous year, the firm earned $0.55 earnings per share. ARM’s quarterly revenue was up 20.1% compared to the same quarter last year. ARM updated its Q1 2027 guidance to 0.360-0.440 EPS.

Here are the key takeaways from ARM’s conference call:

• Arm reported a record quarter and fiscal year with $1.49 billion in Q4 revenue and $4.92 billion for FY2026, marking a third consecutive year of >20% revenue growth and record non?GAAP EPS.
• Demand for the Arm AGI CPU has accelerated to over $2 billion of customer demand for FY2027–2028 and the company remains on track for a long?term target of $15 billion by FY2031, with support from 50+ ecosystem partners and major customers.
• Arm is keeping near?term AGI CPU revenue guidance conservative (maintaining the prior $1 billion outlook) while it secures wafers, memory and packaging capacity, indicating supply constraints could limit initial chip revenue ramp.
• Data?center momentum continues: royalty revenue from cloud AI and data?center chips has more than doubled year?over?year, driven by hyperscaler adoption (AWS, Google, Microsoft, NVIDIA) and strong share in networking DPUs/SmartNICs.
• Arm is increasing R&D (non?GAAP OpEx up ~30% YoY) but delivered a ~49% non?GAAP operating margin

ARM Stock Performance

Shares of NASDAQ ARM opened at $237.30 on Thursday. ARM has a 1 year low of $100.02 and a 1 year high of $239.50. The firm has a market cap of $250.71 billion, a P/E ratio of 316.40, a PEG ratio of 9.39 and a beta of 3.40. The stock has a fifty day moving average price of $152.53 and a two-hundred day moving average price of $138.08.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Guggenheim upped their price objective on shares of ARM from $201.00 to $240.00 and gave the stock a “buy” rating in a report on Wednesday, March 25th. Royal Bank Of Canada lifted their target price on ARM from $130.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday, March 25th. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and increased their target price for the company from $90.00 to $205.00 in a report on Friday, March 20th. Finally, Needham & Company LLC upped their price target on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $180.04.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly/FY26 beat and growth: ARM posted FY26 results with revenue and adjusted profit up ~23% YoY, beating estimates and showing margin improvement as stock?based comp declines — a core reason investors bid the stock higher. Arm FY2026 Earnings: A Future Bet On AI Silicon
• Positive Sentiment: Big demand for new data?center CPU and upbeat guidance: Management disclosed >$2B of customer demand for its AGI CPU and guided Q1 FY27 revenue/EPS above Street expectations — supporting growth and higher-margin silicon revenue. Arm Holdings Reports Higher Profit, Strong Demand for New CPUs
• Positive Sentiment: Analyst upgrades/price target lifts: Brokers (e.g., Needham, Mizuho) raised price targets and reiterated Buy/Outperform as the AI narrative and guidance reinforced upgrades. Benzinga coverage of analyst moves
• Positive Sentiment: Bullish derivatives flow: Unusually large call buying was reported (big increase vs. avg), signaling institutional/leveraged bullish positioning into the print. Options activity report
• Neutral Sentiment: Investor materials posted: Full earnings slide deck and call transcript are available for diligence — useful for modeling ARM’s margin cadence as it moves from IP licensing toward chip sales. Q4 presentation
• Negative Sentiment: Phone-market headwinds: Management warned smartphone demand is weak, which pressures a sizable licensing revenue source and tempers upside if phones stay soft. Arm Warns of Phone Market Weakness, With AI Helping Offset Slump
• Negative Sentiment: Supply / execution risk: Firms flagged that demand for ARM’s in?house chips may outstrip supply or execution capacity, prompting concerns that growth could be delivery?constrained — a key reason some of the after?hours gains were erased. Why did ARM stock wipe out its entire 13% after-hours gain overnight?
• Negative Sentiment: Valuation scrutiny: Even with beats, several pieces noted ARM’s lofty multiples and asked whether the pivot to selling silicon justifies the current rich valuation — a potential cap on near-term upside. Arm’s Record AI Results Test Lofty Valuation And Supply Constraints

Insider Transactions at ARM

In other news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $180.00, for a total value of $3,830,400.00. Following the transaction, the chief financial officer owned 153,426 shares of the company’s stock, valued at $27,616,680. The trade was a 12.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of the business’s stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the completion of the sale, the chief executive officer owned 273,680 shares in the company, valued at $44,021,428. The trade was a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 83,712 shares of company stock valued at $13,614,730 over the last three months.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the stock. CreativeOne Wealth LLC grew its holdings in shares of ARM by 5.0% in the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after acquiring an additional 87 shares during the last quarter. Moors & Cabot Inc. boosted its position in shares of ARM by 5.3% in the 3rd quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock valued at $290,000 after purchasing an additional 103 shares during the period. ICICI Prudential Asset Management Co Ltd boosted its position in shares of ARM by 5.9% in the 4th quarter. ICICI Prudential Asset Management Co Ltd now owns 2,220 shares of the company’s stock valued at $243,000 after purchasing an additional 123 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in ARM by 0.7% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 25,362 shares of the company’s stock worth $3,588,000 after purchasing an additional 185 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its holdings in ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after buying an additional 200 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

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.

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