Arteris (NASDAQ:AIP) Releases Earnings Results, Beats Expectations By $0.05 EPS

Arteris (NASDAQ:AIP) announced its quarterly earnings results on Tuesday. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.05, FiscalAI reports. The business had revenue of $22.94 million for the quarter, compared to analysts’ expectations of $21.03 million.

Here are the key takeaways from Arteris’ conference call:

• Arteris reported a record quarter with Q1 revenue of $22.9 million, up 39% year over year, and ACV plus royalties reaching a new high of $92.8 million, also up 39%.
• Royalties were a major strength, rising 67% year over year to a record $7.9 million, driven by a broader and more diversified customer base across automotive, enterprise computing, consumer, and aerospace/defense.
• The company said demand is increasingly tied to AI, data center, and chiplet designs, with two-thirds of customer engagements now related to AI chips and several notable wins at hyperscalers, memory suppliers, and automotive customers.
• Arteris lifted its full-year 2026 outlook, now expecting revenue of $91 million-$95 million and ACV plus royalties of $102 million-$106 million, while also projecting positive free cash flow and a path to non-GAAP profitability as early as Q4.
• The company highlighted its Cycuity acquisition and early customer interest in chip cybersecurity offerings, but management said it is still early and the contribution remains difficult to judge at this stage. CFO Nick Hawkins also announced plans to retire effective August 31, 2026.

Arteris Stock Up 4.9%

Arteris stock traded up $1.74 during trading hours on Thursday, hitting $37.29. The stock had a trading volume of 591,617 shares, compared to its average volume of 578,158. The stock’s 50-day moving average price is $20.74 and its 200-day moving average price is $17.31. Arteris has a 12-month low of $6.88 and a 12-month high of $38.46. The stock has a market capitalization of $1.72 billion, a P/E ratio of -47.24 and a beta of 1.93.

Insider Activity at Arteris

In other Arteris news, Director Raman Chitkara sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $30.05, for a total value of $150,250.00. Following the completion of the transaction, the director directly owned 142,867 shares in the company, valued at $4,293,153.35. This represents a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Laurent R. Moll sold 13,448 shares of the business’s stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $20.03, for a total transaction of $269,363.44. Following the completion of the transaction, the chief operating officer directly owned 265,530 shares in the company, valued at $5,318,565.90. This trade represents a 4.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 866,923 shares of company stock valued at $18,543,293 in the last three months. Corporate insiders own 29.10% of the company’s stock.

Institutional Trading of Arteris

Several institutional investors have recently added to or reduced their stakes in AIP. Raymond James Financial Inc. purchased a new stake in shares of Arteris during the second quarter valued at $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 worth $61,000 after acquiring an additional 2,595 shares during the period. Strs Ohio purchased a new stake in Arteris in the first quarter worth about $104,000. Susquehanna Fundamental Investments LLC purchased a new stake in Arteris in the third quarter worth about $113,000. Finally, New York State Common Retirement Fund lifted its stake in Arteris by 352.4% in the fourth quarter. New York State Common Retirement Fund now owns 9,500 shares of the company’s stock worth $147,000 after acquiring an additional 7,400 shares during the period. Institutional investors own 64.36% of the company’s stock.

Arteris News Summary

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris delivered a smaller-than-expected Q1 loss of $0.03 per share, beating estimates and improving from a $0.09 loss a year ago, which supports the recent stock strength. Article Title
• Positive Sentiment: Revenue of $22.94 million topped expectations, reinforcing confidence that demand and execution are improving. Article Title
• Positive Sentiment: Management raised second-quarter and full-year 2026 revenue guidance, signaling that momentum may continue into the rest of the year. Article Title
• Positive Sentiment: Rosenblatt Securities sharply raised its price target from $20 to $38 and reiterated a Buy rating, adding to the bullish sentiment around the stock. Article Title
• Neutral Sentiment: Arteris also released its earnings call transcript and presentation, which may provide more detail on growth drivers and profitability progress. Article Title
• Neutral Sentiment: The company disclosed a new shareholder-rights risk item, which adds a cautionary note but appears secondary to the strong earnings story. Article Title
• Negative Sentiment: Insider and major shareholder Bayview Legacy, LLC sold 70,000 shares, a potential overhang even though the sale was modest relative to its remaining stake. Article Title

Wall Street Analyst Weigh In

AIP has been the topic of several recent research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Arteris in a report on Monday, April 20th. TD Cowen raised their price target on shares of Arteris from $22.00 to $40.00 and gave the stock a “buy” rating in a report on Wednesday. Jefferies Financial Group raised their price target on shares of Arteris from $16.00 to $35.00 and gave the stock a “hold” rating in a report on Wednesday. Northland Securities set a $38.00 price target on shares of Arteris in a report on Wednesday. Finally, Wall Street Zen lowered shares of Arteris from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Arteris has a consensus rating of “Hold” and an average price target of $37.75.

About Arteris

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.