Arteris (NASDAQ:AIP) Releases Earnings Results, Beats Expectations By $0.03 EPS

Arteris (NASDAQ:AIP) issued its quarterly earnings results on Thursday. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03, FiscalAI reports. The company had revenue of $20.14 million for the quarter, compared to the consensus estimate of $18.55 million.

Here are the key takeaways from Arteris’ conference call:

• Record commercial momentum — Arteris reported ACV plus royalties of $83.6M (+28% YoY), Q4 revenue of $20.1M (+30% YoY), and RPO of $117M (+32% YoY), with variable royalties up ~50% YoY.
• Strong profitability and balance sheet — Non‑GAAP gross margin was ~92%, the company finished with $59.5M in cash and no debt, and generated positive free cash flow for the year.
• Acquisition of Cycuity — Closed Jan 14, 2026, adding semiconductor cybersecurity assurance tools that expand addressable market and cross‑sell opportunities (guidance includes ~ $7M revenue from Cycuity in 2026, with a modest ~ $1M expected near‑term drag and ~1–2pp gross margin accounting impact).
• Bullish 2026 outlook and path to profitability — Guidance targets ACV exit of $100–104M and revenue of $89–93M (including Cycuity), with management expecting a non‑GAAP operating profit as early as Q4 2026.
• Product and customer momentum — AI‑focused products like FlexGen (licensed for 30+ production deployments) and Ncore/FlexNoC saw increased adoption by customers such as AMD, NXP, Black Sesame and Blaize, while chiplet projects using Arteris tech have more than tripled in two years.

Arteris Trading Down 2.7%

Arteris stock traded down $0.41 during midday trading on Friday, reaching $14.51. 533,025 shares of the stock traded hands, compared to its average volume of 449,945. Arteris has a fifty-two week low of $5.46 and a fifty-two week high of $19.85. The firm has a market cap of $633.80 million, a price-to-earnings ratio of -17.55 and a beta of 1.47. The firm has a fifty day moving average price of $16.28 and a two-hundred day moving average price of $13.24.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on AIP shares. Rosenblatt Securities reissued a “buy” rating and set a $20.00 price target on shares of Arteris in a research report on Friday. TD Cowen reissued a “buy” rating on shares of Arteris in a report on Wednesday, November 5th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Arteris in a report on Wednesday, January 21st. Northland Securities set a $24.00 price objective on shares of Arteris in a research report on Friday. Finally, Jefferies Financial Group upgraded shares of Arteris to a “hold” rating in a research note on Tuesday, October 28th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Arteris presently has an average rating of “Hold” and an average price target of $20.17.

Key Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Q4 2025 results beat expectations — EPS of ($0.05) vs consensus ($0.08) and revenue of $20.14M vs $18.55M, signaling improving top‑line momentum. Read More.
• Positive Sentiment: Company issued above‑consensus revenue guidance: Q1 2026 revenue $20.5M–$21.5M (consensus ~ $18.9M) and FY2026 revenue $89M–$93M (consensus ~ $83.4M) — a near‑term growth target that could underpin multiples if execution follows. Read More.
• Positive Sentiment: Commercial validation: Arteris reports its NoC technology has shipped in over 4 billion chips/chiplets and NXP expanded use of Arteris IP across AI‑enabled SoC/NPU/MCU designs — strengthens TAM exposure in edge AI and automotive. Read More. Read More.
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a Buy and $20 PT, and several institutions have added shares recently; that research/institutional interest can support upside if growth continues. Read More.
• Neutral Sentiment: Management commentary and full earnings/call transcript available — useful for parsing bookings, contract pipeline and margin trajectory. Read More.
• Neutral Sentiment: Strategic update: company flagged a $100M+ contract‑value target for 2026 and acquisition activity to bolster chip security (Cycuity) — potential long‑term upside but execution dependent. Read More.
• Negative Sentiment: Insider selling: CEO K. Charles Janac and major shareholder Bayview Legacy have sold material blocks in recent days/weeks (e.g., 47,244 shares on Feb 9 + 2,756 on Feb 10) — recurring insider sales can weigh on investor sentiment and add supply. Read More.
• Negative Sentiment: Company remains unprofitable on a GAAP basis and sell‑side median still forecasts negative FY EPS (consensus ~ -0.73), so valuation depends on revenue acceleration and path to profitability. Read More.

Insider Buying and Selling at Arteris

In related news, major shareholder Bayview Legacy, Llc sold 2,756 shares of the firm’s stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $15.03, for a total value of $41,422.68. Following the sale, the insider directly owned 9,349,071 shares in the company, valued at $140,516,537.13. This trade represents a 0.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Paul L. Alpern sold 5,000 shares of Arteris stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $15.48, for a total value of $77,400.00. Following the sale, the vice president directly owned 57,650 shares in the company, valued at $892,422. The trade was a 7.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 689,072 shares of company stock worth $11,525,611. 29.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arteris

Hedge funds have recently modified their holdings of the company. Franklin Resources Inc. lifted its holdings in shares of Arteris by 6.2% in the fourth quarter. Franklin Resources Inc. now owns 1,743,031 shares of the company’s stock valued at $27,017,000 after buying an additional 101,646 shares during the period. Vanguard Group Inc. raised its position in Arteris by 8.2% in the third quarter. Vanguard Group Inc. now owns 1,594,402 shares of the company’s stock worth $16,103,000 after acquiring an additional 120,947 shares in the last quarter. Westerly Capital Management LLC lifted its holdings in Arteris by 109.6% in the 3rd quarter. Westerly Capital Management LLC now owns 1,425,000 shares of the company’s stock valued at $14,392,000 after acquiring an additional 745,000 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Arteris by 144.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,012,670 shares of the company’s stock valued at $15,696,000 after purchasing an additional 598,840 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Arteris by 6.1% during the 4th quarter. Geode Capital Management LLC now owns 760,387 shares of the company’s stock valued at $11,789,000 after purchasing an additional 43,903 shares in the last quarter. 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.