ARM (NASDAQ:ARM) Releases Earnings Results, Beats Expectations By $0.02 EPS

ARM (NASDAQ:ARM) announced its quarterly earnings results on Wednesday. The company reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.02, FiscalAI reports. The company had revenue of $1.49 billion for the quarter, compared to analysts’ expectations of $1.47 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. ARM updated its Q1 2027 guidance to 0.360-0.440 EPS.

Here are the key takeaways from ARM’s conference call:

• Arm reported a record quarter and fiscal year with $1.49 billion in Q4 revenue and $4.92 billion for FY2026, marking a third consecutive year of >20% revenue growth and record non‑GAAP EPS.
• Demand for the Arm AGI CPU has accelerated to over $2 billion of customer demand for FY2027–2028 and the company remains on track for a long‑term target of $15 billion by FY2031, with support from 50+ ecosystem partners and major customers.
• Arm is keeping near‑term AGI CPU revenue guidance conservative (maintaining the prior $1 billion outlook) while it secures wafers, memory and packaging capacity, indicating supply constraints could limit initial chip revenue ramp.
• Data‑center momentum continues: royalty revenue from cloud AI and data‑center chips has more than doubled year‑over‑year, driven by hyperscaler adoption (AWS, Google, Microsoft, NVIDIA) and strong share in networking DPUs/SmartNICs.
• Arm is increasing R&D (non‑GAAP OpEx up ~30% YoY) but delivered a ~49% non‑GAAP operating margin

ARM Price Performance

ARM stock traded up $28.46 during mid-day trading on Wednesday, hitting $237.30. 24,520,765 shares of the stock were exchanged, compared to its average volume of 7,497,443. ARM has a 12 month low of $100.02 and a 12 month high of $239.50. The business has a fifty day moving average price of $150.26 and a 200 day moving average price of $137.61. The stock has a market capitalization of $250.71 billion, a price-to-earnings ratio of 316.40, a PEG ratio of 9.16 and a beta of 3.40.

Insider Buying and Selling

In other news, CFO Jason Child sold 21,280 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the sale, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of the firm’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the sale, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. This trade represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 83,712 shares of company stock worth $13,614,730 over the last ninety days.

Institutional Investors Weigh In On ARM

Several institutional investors and hedge funds have recently bought and sold shares of the business. Morgan Stanley grew its position in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares during the last quarter. Invesco Ltd. raised its holdings in shares of ARM by 36.9% during the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after acquiring an additional 654,727 shares in the last quarter. Coatue Management LLC raised its holdings in shares of ARM by 1.8% during the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after acquiring an additional 40,174 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of ARM by 41.6% during the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after acquiring an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group raised its holdings in shares of ARM by 11.0% during the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after acquiring an additional 187,035 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Beat on results — ARM posted $0.60 EPS on $1.49B revenue, topping Street estimates and showing solid margins. Read More.
• Positive Sentiment: Upbeat guidance — ARM guided Q1 FY27 revenue around $1.26B and EPS to $0.36–$0.44 (midpoint ~$0.40), above consensus, reducing near‑term execution risk. Read More.
• Positive Sentiment: Large demand for new CPU — management said there is more than $2B of customer demand for its new Arm AGI/data‑center CPU across fiscal 2027–28, validating the company’s move into full‑chip economics. Read More.
• Positive Sentiment: AI/industry tailwinds — upside was amplified by a broader chip rally after strong AMD guidance and investor optimism around AI infrastructure spending. Read More.
• Neutral Sentiment: Official filing and shareholder letter published (full results and outlook available). Read More.
• Neutral Sentiment: Unusually large call buying was recorded into the print, indicating speculative/leveraged bullish positioning that can amplify moves in either direction. (Options flow reported in market commentary.)
• Negative Sentiment: Strategic risk — ARM’s shift into designing its own data‑center CPUs could pit it against some licensees/customers, creating potential channel or competitive friction. Read More.
• Negative Sentiment: Valuation and technical caution — the stock trades at a very high P/E and some analysts/technical commentators warned of downside if execution or AI spending momentum slows. Read More.

Wall Street Analysts Forecast Growth

ARM has been the subject of several recent research reports. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and lifted their price target for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Jefferies Financial Group set a $170.00 price target on ARM in a research report on Thursday, February 5th. Raymond James Financial upgraded ARM from a “market perform” rating to an “outperform” rating and set a $166.00 price target for the company in a research report on Wednesday, March 25th. Deutsche Bank Aktiengesellschaft lifted their price target on ARM from $125.00 to $140.00 and gave the company a “hold” rating in a research report on Wednesday, March 25th. Finally, TD Cowen reduced their price target on ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Eighteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $177.75.

ARM Company Profile

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.

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