ARM (NASDAQ:ARM) Issues Q2 2027 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its second quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.430-0.510 for the period, compared to the consensus earnings per share estimate of 0.390. The company issued revenue guidance of $880.0M-$1.9 billion, compared to the consensus revenue estimate of $1.3 billion.

Analyst Ratings Changes

A number of equities analysts have commented on ARM shares. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a research note on Thursday, May 7th. New Street Research lowered ARM from a “buy” rating to a “neutral” rating in a report on Thursday, June 18th. Rosenblatt Securities raised their price target on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Finally, Susquehanna raised their target price on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Seventeen analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $297.65.

ARM Price Performance

NASDAQ:ARM traded down $19.85 during trading hours on Wednesday, hitting $224.89. The company’s stock had a trading volume of 9,243,659 shares, compared to its average volume of 8,575,546. ARM has a twelve month low of $100.02 and a twelve month high of $452.70. The stock has a fifty day simple moving average of $331.09 and a 200-day simple moving average of $211.79. The company has a market capitalization of $240.20 billion, a P/E ratio of 267.73, a PEG ratio of 8.28 and a beta of 3.76.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. The firm had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.43% and a net margin of 18.37%.ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, equities analysts predict that ARM will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the transaction, the insider owned 5,543 shares of the company’s stock, valued at $1,159,318.45. This represents a 81.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the sale, the chief accounting officer directly owned 12,135 shares in the company, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 216,049 shares of company stock worth $52,101,605 over the last 90 days.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported record first-quarter revenue of $1.29 billion, up 22% year over year, while earnings per share reached $0.45 versus the $0.40 analyst consensus. Both results exceeded expectations. Arm Holdings beats Q1 estimates, shares fall in after-hours
• Positive Sentiment: The company forecast second-quarter EPS of $0.43 to $0.51, above the $0.39 consensus estimate, and projected quarterly revenue above Wall Street expectations. The outlook reflects continued demand for Arm-based designs in AI data centers. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Positive Sentiment: Demand from hyperscale cloud companies, including Alphabet and Amazon, is supporting Arm’s licensing revenue and royalty growth as increasingly complex AI and data-center chips are shipped. Arm shares dive after hours despite forecasts above estimates
• Neutral Sentiment: Management published its fiscal 2027 first-quarter shareholder letter, providing the formal results and outlook for investors. Arm Holdings plc Reports Results for the First Quarter
• Negative Sentiment: Despite the earnings and guidance beats, shares fell nearly 7% in after-hours trading because investors viewed the sales outlook as insufficiently impressive relative to the market’s very high expectations for AI growth. Analysts also noted that Arm’s premium valuation leaves little room for an merely solid quarter. Qualcomm and Arm Forecasts Fail to Impress Investors

Institutional Trading of ARM

Hedge funds and other institutional investors have recently made changes to their positions in the company. CreativeOne Wealth LLC increased its holdings in shares of ARM by 5.0% in the fourth quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after purchasing an additional 87 shares during the period. Moors & Cabot Inc. boosted its stake in ARM by 5.3% during the third quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock valued at $290,000 after buying an additional 103 shares during the period. ICICI Prudential Asset Management Co Ltd boosted its stake in ARM by 5.9% during the fourth quarter. ICICI Prudential Asset Management Co Ltd now owns 2,220 shares of the company’s stock valued at $243,000 after buying an additional 123 shares during the period. Mercer Global Advisors Inc. ADV grew its position in ARM by 0.7% during the third quarter. Mercer Global Advisors Inc. ADV now owns 25,362 shares of the company’s stock worth $3,588,000 after buying an additional 185 shares in the last quarter. Finally, Schnieders Capital Management LLC. grew its position in ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after buying an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

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.