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

Arteris (NASDAQ:AIP) posted its earnings results on Thursday. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.06), FiscalAI reports. The company had revenue of $24.13 million for the quarter, compared to analysts’ expectations 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 Performance

AIP opened at $31.62 on Friday. The stock has a market cap of $1.46 billion, a P/E ratio of -40.03 and a beta of 1.96. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.73 and a quick ratio of 0.73. Arteris has a 1-year low of $8.42 and a 1-year high of $50.26. The stock’s 50 day simple moving average is $36.06 and its 200 day simple moving average is $26.16.

Key Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris reported second-quarter revenue of $24.13 million, above the $23.48 million analyst consensus. Management also forecast third-quarter revenue of $24 million to $25 million and full-year revenue of $95 million to $98 million, both ahead of consensus estimates. The improved revenue outlook supports the growth case for Arteris’ semiconductor interconnect and system-IP business. Arteris second-quarter results and guidance
• Positive Sentiment: Roth Capital initiated coverage with a Buy rating and a $40 price target. The recommendation adds to recent bullish analyst coverage, including Oppenheimer’s Outperform rating, and indicates potential upside from recent trading levels. Roth Capital Buy rating
• Neutral Sentiment: Arteris appointed Saurabh Sinha as chief financial officer and chief accounting officer, effective September 8, 2026. The leadership change may improve financial oversight, although investors will likely await further details on his priorities and transition. Arteris CFO appointment
• Negative Sentiment: Second-quarter adjusted loss was $0.10 per share, worse than the $0.04–$0.05 consensus loss and only modestly improved from the $0.11 loss a year earlier. The earnings shortfall is the main reason the results could weigh on the stock despite the revenue beat. Arteris second-quarter earnings report
• Negative Sentiment: Insiders reported a cluster of sales, including CEO K. Charles Janac’s sales, Director Saiyed Atiq Raza’s sale of 70,000 shares, and Vice President Paul Alpern’s sale of 4,000 shares. Although insiders retain substantial holdings, the transactions may create a cautious sentiment around AIP. Arteris insider selling

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on AIP shares. Weiss Ratings cut Arteris from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, May 13th. Northland Securities set a $38.00 target price on shares of Arteris in a report on Wednesday, May 13th. Roth Capital started coverage on shares of Arteris in a research note on Tuesday. They set a “buy” rating and a $40.00 target price for the company. Rosenblatt Securities upped their target price on shares of Arteris from $20.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Finally, TD Cowen upped 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. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $38.50.

Insider Buying and Selling

In other news, CFO Nicholas B. Hawkins sold 221,035 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $33.40, for a total value of $7,382,569.00. Following the completion of the transaction, the chief financial officer directly owned 110,600 shares of the company’s stock, valued at $3,694,040. The trade was a 66.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO K Charles Janac sold 192,686 shares of the company’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $36.32, for a total value of $6,998,355.52. Following the completion of the sale, the chief executive officer owned 8,555,047 shares in the company, valued at $310,719,307.04. This represents a 2.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 1,498,949 shares of company stock valued at $52,200,293. 23.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Arteris

Institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD raised its position in shares of Arteris by 20.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,453 shares of the company’s stock worth $271,000 after buying an additional 2,955 shares during the period. Bank of Nova Scotia acquired a new stake in Arteris during the fourth quarter worth about $194,000. Campbell & CO Investment Adviser LLC raised its holdings in shares of Arteris by 29.9% in the 4th quarter. Campbell & CO Investment Adviser LLC now owns 16,449 shares of the company’s stock worth $255,000 after purchasing an additional 3,791 shares during the period. Cerity Partners LLC purchased a new position in shares of Arteris in the 4th quarter worth about $233,000. Finally, State of Wyoming acquired a new position in shares of Arteris in the 4th quarter valued at about $180,000. 64.36% of the stock is currently owned by institutional investors and hedge funds.

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.