ARM (NASDAQ:ARM) Updates Q1 2027 Earnings Guidance

ARM (NASDAQ:ARM) updated its first quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.360-0.440 for the period, compared to the consensus earnings per share estimate of 0.320. The company issued revenue guidance of $1.3 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion.

Analysts Set New Price Targets

Several research firms have commented on ARM. Barclays reissued an “overweight” rating and issued a $165.00 target price on shares of ARM in a report on Thursday, March 26th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Rosenblatt Securities reissued a “buy” rating and issued a $175.00 target price on shares of ARM in a report on Wednesday, March 25th. Deutsche Bank Aktiengesellschaft boosted their target price on ARM from $125.00 to $140.00 and gave the stock a “hold” rating in a report on Wednesday, March 25th. Finally, Jefferies Financial Group set a $170.00 target price on ARM in a report on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and a consensus target price of $177.75.

ARM Price Performance

ARM stock traded up $28.46 during mid-day trading on Wednesday, reaching $237.30. 23,786,178 shares of the stock traded hands, compared to its average volume of 7,466,469. The stock has a market capitalization of $250.71 billion, a PE ratio of 316.40, a price-to-earnings-growth ratio of 9.16 and a beta of 3.40. ARM has a 12-month low of $100.02 and a 12-month high of $239.50. The business’s 50-day moving average is $150.26 and its 200-day moving average is $137.61.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.02. The company had revenue of $1.49 billion during the quarter, compared to analysts’ expectations of $1.47 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.ARM has set its Q1 2027 guidance at 0.360-0.440 EPS. Equities analysts anticipate that ARM will post 0.85 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the completion of the sale, the chief financial officer owned 153,426 shares in the company, valued at approximately $27,616,680. This represents a 12.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of the company’s stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total value of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares of the company’s stock, valued at approximately $44,021,428. This trade represents a 3.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 83,712 shares of company stock valued at $13,614,730.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Beat Q4 estimates — ARM reported $0.60 EPS vs. $0.58 consensus and $1.49B revenue vs. $1.47B expected; margins and ROE remained healthy. Business Wire: Q4 results
• Positive Sentiment: Upbeat guidance — ARM guided Q1 revenue to ~$1.26B at the midpoint and adjusted EPS to $0.40, above Street estimates, signaling continued strength from AI/data?center demand. Proactive Investors: Guidance
• Positive Sentiment: AI/data?center tailwinds — Management cited accelerating adoption of Arm technology in AI and cloud compute, supporting the revenue outlook. Reuters: AI demand
• Positive Sentiment: Bulish market signals — Unusually large call buying (87,690 calls) and a sector rally after AMD/Intel strength lifted chip names, amplifying upside momentum.
• Neutral Sentiment: Strategic shift into in?house data?center CPUs — This could expand future revenue pools but changes Arm’s licensing?centric model and may take time to prove profitable; investors are watching execution and customer dynamics. Yahoo: Business model shift
• Negative Sentiment: Execution & conflict risk — Moving into full CPUs could put Arm in competition with some licensees (cloud providers and chipmakers), creating potential customer pushback and execution risk. Yahoo: Competitive risks
• Negative Sentiment: Valuation/sentiment warnings — Some analysts and technical commentators flagged elevated valuation and the potential for a pullback if execution or growth disappoints. Seeking Alpha: Technical warning

Hedge Funds Weigh In On ARM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. bought a new position in ARM during the fourth quarter valued at approximately $30,000. FWL Investment Management LLC bought a new position in ARM during the second quarter valued at approximately $34,000. WFA of San Diego LLC bought a new position in ARM during the second quarter valued at approximately $49,000. Intesa Sanpaolo Wealth Management bought a new position in ARM during the fourth quarter valued at approximately $52,000. Finally, Greenline Wealth Management LLC bought a new position in ARM during the fourth quarter valued at approximately $56,000. 7.53% of the stock is owned by institutional investors.

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.