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

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

Shares of NASDAQ AIP traded up $0.69 during midday trading on Thursday, hitting $31.62. The company’s stock had a trading volume of 1,040,491 shares, compared to its average volume of 602,251. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.73 and a current ratio of 0.73. Arteris has a 1-year low of $8.42 and a 1-year high of $50.26. The firm’s fifty day moving average price is $36.06 and its 200-day moving average price is $26.16. The firm has a market cap of $1.46 billion, a P/E ratio of -40.03 and a beta of 1.96.

Insider Buying and Selling at Arteris

In other Arteris news, major shareholder Bayview Legacy, Llc sold 26,106 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.97, for a total value of $834,608.82. Following the transaction, the insider owned 8,329,071 shares of the company’s stock, valued at $266,280,399.87. This trade represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Saiyed Atiq Raza sold 70,000 shares of Arteris stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $30.01, for a total value of $2,100,700.00. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,638,949 shares of company stock worth $56,568,293 in the last ninety days. Insiders own 23.30% of the company’s stock.

Institutional Trading of Arteris

Hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. bought a new position in Arteris during the 2nd quarter worth $32,000. BNP Paribas Financial Markets lifted its stake in Arteris by 75.0% in the third quarter. BNP Paribas Financial Markets now owns 6,053 shares of the company’s stock valued at $61,000 after buying an additional 2,595 shares during the last quarter. New York State Common Retirement Fund boosted its holdings in shares of Arteris by 352.4% during the fourth quarter. New York State Common Retirement Fund now owns 9,500 shares of the company’s stock valued at $147,000 after acquiring an additional 7,400 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in shares of Arteris during the fourth quarter valued at $162,000. Finally, Susquehanna Fundamental Investments LLC bought a new position in shares of Arteris during the third quarter worth about $113,000. Institutional investors own 64.36% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on AIP shares. TD Cowen boosted their price objective on Arteris from $22.00 to $40.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Wall Street Zen downgraded Arteris from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Roth Capital began coverage on Arteris in a research report on Tuesday. They issued a “buy” rating and a $40.00 target price for the company. Rosenblatt Securities boosted their price target on Arteris from $20.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Finally, Oppenheimer started coverage on Arteris in a research report on Thursday, July 16th. They set an “outperform” rating and a $40.00 price target on the stock. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $38.50.

Arteris News Summary

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. More importantly, the company forecast third-quarter revenue of $24.0 million to $25.0 million and full-year 2026 revenue of $95.0 million to $98.0 million, both ahead of consensus estimates of $23.5 million and $94.2 million, respectively. The outlook suggests continued demand for Arteris’ semiconductor interconnect and system IP products. Arteris financial results and guidance
• Positive Sentiment: Roth Capital initiated coverage with a Buy rating and a $40 price target, while other analysts also maintain bullish targets. The new coverage adds support to the investment case and implies meaningful upside from recent trading levels. Roth Capital coverage
• Neutral Sentiment: Arteris appointed Saurabh Sinha as chief financial officer. The leadership change may improve investor focus on financial execution, although the announcement itself provides limited information about near-term earnings effects. Arteris CFO appointment
• Negative Sentiment: Second-quarter adjusted EPS was a loss of $0.10, missing the expected loss of $0.04 by $0.06. The larger-than-expected loss highlights ongoing profitability pressure despite the revenue beat. Arteris quarterly earnings
• Negative Sentiment: Several insiders reported sales, including CEO K. Charles Janac, Director Saiyed Atiq Raza, major shareholder Bayview Legacy, and Vice President Paul Alpern. While the sales represent relatively small portions of their remaining holdings in some cases, the concentration of insider selling could weigh on sentiment. Arteris insider selling

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.