ARM (NASDAQ:ARM) Announces Quarterly Earnings Results, Beats Expectations By $0.06 EPS

ARM (NASDAQ:ARM) posted its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.06, FiscalAI reports. The firm had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.06 billion. ARM had a net margin of 18.81% and a return on equity of 15.39%. The business’s revenue for the quarter was up 34.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.30 EPS. ARM updated its Q3 2026 guidance to 0.370-0.450 EPS.

ARM Trading Down 4.5%

ARM opened at $151.12 on Friday. ARM has a 12 month low of $80.00 and a 12 month high of $183.16. The business’s 50-day moving average price is $155.10 and its 200-day moving average price is $144.07. The company has a market cap of $159.66 billion, a P/E ratio of 193.58, a P/E/G ratio of 10.06 and a beta of 4.11.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Raymond James Financial upped their target price on ARM from $140.00 to $165.00 and gave the company an “outperform” rating in a report on Thursday, July 31st. BNP Paribas Exane upgraded shares of ARM from a “neutral” rating to an “outperform” rating and set a $210.00 target price for the company in a research note on Wednesday, July 16th. Evercore ISI raised their price objective on shares of ARM from $173.00 to $178.00 and gave the stock an “outperform” rating in a report on Thursday, September 11th. Benchmark reissued a “hold” rating on shares of ARM in a report on Thursday. Finally, Barclays lifted their price target on ARM from $115.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, ARM presently has an average rating of “Moderate Buy” and an average target price of $178.55.

Institutional Trading of ARM

Institutional investors have recently made changes to their positions in the stock. Amundi raised its holdings in ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after buying an additional 2,345 shares during the last quarter. Empowered Funds LLC lifted its holdings in ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock worth $522,000 after buying an additional 1,094 shares during the period. Schnieders Capital Management LLC. grew its position in shares of ARM by 9.0% in 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 last quarter. Bank of Nova Scotia purchased a new position in shares of ARM during the second quarter valued at approximately $556,000. Finally, State Street Corp raised its holdings in shares of ARM by 14.7% during the second quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after acquiring an additional 56,656 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.