Arteris (NASDAQ:AIP) Announces Quarterly Earnings Results

Arteris (NASDAQ:AIP) released its quarterly earnings data on Tuesday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.05, FiscalAI reports. The company had revenue of $22.94 million during the quarter, compared to analyst estimates of $21.03 million.

Here are the key takeaways from Arteris’ conference call:

• Arteris reported a record quarter with Q1 revenue of $22.9 million, up 39% year over year, and ACV plus royalties reaching a new high of $92.8 million, also up 39%.
• Royalties were a major strength, rising 67% year over year to a record $7.9 million, driven by a broader and more diversified customer base across automotive, enterprise computing, consumer, and aerospace/defense.
• The company said demand is increasingly tied to AI, data center, and chiplet designs, with two-thirds of customer engagements now related to AI chips and several notable wins at hyperscalers, memory suppliers, and automotive customers.
• Arteris lifted its full-year 2026 outlook, now expecting revenue of $91 million-$95 million and ACV plus royalties of $102 million-$106 million, while also projecting positive free cash flow and a path to non-GAAP profitability as early as Q4.
• The company highlighted its Cycuity acquisition and early customer interest in chip cybersecurity offerings, but management said it is still early and the contribution remains difficult to judge at this stage. CFO Nick Hawkins also announced plans to retire effective August 31, 2026.

Arteris Stock Up 6.6%

NASDAQ AIP traded up $2.36 during trading hours on Thursday, hitting $37.91. 540,359 shares of the stock were exchanged, compared to its average volume of 576,941. The company has a market cap of $1.75 billion, a price-to-earnings ratio of -48.14 and a beta of 1.93. Arteris has a 12-month low of $6.88 and a 12-month high of $38.46. The stock has a 50-day moving average of $20.74 and a 200 day moving average of $17.31.

Analysts Set New Price Targets

Several research firms have issued reports on AIP. Jefferies Financial Group upped their price objective on shares of Arteris from $16.00 to $35.00 and gave the company a “hold” rating in a research note on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of Arteris in a research note on Monday, April 20th. Wall Street Zen downgraded shares of Arteris from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Northland Securities set a $38.00 price objective on shares of Arteris in a research note on Wednesday. Finally, Rosenblatt Securities upped their price objective on shares of Arteris from $20.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $37.75.

Insider Buying and Selling

In related news, major shareholder Bayview Legacy, Llc sold 70,000 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $19.04, for a total transaction of $1,332,800.00. Following the completion of the transaction, the insider directly owned 9,119,071 shares of the company’s stock, valued at $173,627,111.84. This represents a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Saiyed Atiq Raza sold 106,031 shares of the stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $17.21, for a total transaction of $1,824,793.51. Following the transaction, the director directly owned 393,690 shares of the company’s stock, valued at $6,775,404.90. This represents a 21.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 866,923 shares of company stock valued at $18,543,293 over the last ninety days. Corporate insiders own 29.10% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AIP. Raymond James Financial Inc. purchased a new position in Arteris during the second quarter worth about $32,000. BNP Paribas Financial Markets raised its holdings in Arteris by 75.0% during the third quarter. BNP Paribas Financial Markets now owns 6,053 shares of the company’s stock worth $61,000 after purchasing an additional 2,595 shares in the last quarter. Strs Ohio purchased a new position in Arteris during the first quarter worth about $104,000. Susquehanna Fundamental Investments LLC purchased a new position in Arteris during the third quarter worth about $113,000. Finally, New York State Common Retirement Fund increased its holdings in Arteris by 352.4% in the fourth quarter. New York State Common Retirement Fund now owns 9,500 shares of the company’s stock valued at $147,000 after buying an additional 7,400 shares in the last quarter. 64.36% of the stock is owned by hedge funds and other institutional investors.

Arteris News Roundup

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris delivered a smaller-than-expected Q1 loss of $0.03 per share, beating estimates and improving from a $0.09 loss a year ago, which supports the recent stock strength. Article Title
• Positive Sentiment: Revenue of $22.94 million topped expectations, reinforcing confidence that demand and execution are improving. Article Title
• Positive Sentiment: Management raised second-quarter and full-year 2026 revenue guidance, signaling that momentum may continue into the rest of the year. Article Title
• Positive Sentiment: Rosenblatt Securities sharply raised its price target from $20 to $38 and reiterated a Buy rating, adding to the bullish sentiment around the stock. Article Title
• Neutral Sentiment: Arteris also released its earnings call transcript and presentation, which may provide more detail on growth drivers and profitability progress. Article Title
• Neutral Sentiment: The company disclosed a new shareholder-rights risk item, which adds a cautionary note but appears secondary to the strong earnings story. Article Title
• Negative Sentiment: Insider and major shareholder Bayview Legacy, LLC sold 70,000 shares, a potential overhang even though the sale was modest relative to its remaining stake. Article Title

Arteris Company Profile

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.