ARM (NASDAQ:ARM) Trading Up 7.1% on Earnings Beat

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 7.1% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $112.28 and last traded at $112.3840. Approximately 13,566,017 shares traded hands during mid-day trading, an increase of 93% from the average daily volume of 7,042,964 shares. The stock had previously closed at $104.90.

The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a return on equity of 15.03% and a net margin of 18.81%.The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same period in the previous year, the company posted $0.39 EPS. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: New Street Research upgraded ARM from “neutral” to “buy”, signaling stronger analyst confidence. The Fly
• Positive Sentiment: ARM reported Q3 FY2026 results that beat consensus for EPS and revenue, with revenue rising ~25–26% YoY driven by AI demand — a near-term fundamental positive supporting the stock. MarketBeat earnings
• Positive Sentiment: ARM gave Q4 FY2026 guidance (EPS 0.540–0.620) and forecast revenue above street estimates, citing sustained AI-driven demand — guidance that investors view as constructive. Reuters
• Positive Sentiment: Rosenblatt and other firms maintained buy/outperform stances (even with trimmed targets), providing continued analyst support for the bullish case. Benzinga
• Neutral Sentiment: Wells Fargo lowered its price target to $150 but kept an “overweight” rating — a mixed signal (lower PT but still constructive). Benzinga
• Neutral Sentiment: Mizuho trimmed its target (from $190 to $160) while keeping an “outperform” view; Benchmark reaffirmed a “hold” — varied analyst views are adding volatility but not a uniform sell signal. Benzinga
• Neutral Sentiment: ARM announced its “Arm Everywhere” event for March 24 — a potential catalyst for product/partnership news but not an immediate earnings driver. Business Wire
• Negative Sentiment: Shares were pressured after-hours when licensing revenue narrowly missed estimates and commentary around Qualcomm’s outlook amplified concerns. That after-hours reaction weighed on sentiment despite the beat in total revenue. CNBC
• Negative Sentiment: Industry headwinds — notably a memory shortage that could constrain smartphone/chip demand — were flagged by executives and analysts, a macro factor that can dampen near-term growth for ARM’s customers. Reuters
• Negative Sentiment: Coverage noting that profit fell despite revenue growth and commentary that guidance was only in-line for some metrics contributed to mixed investor reactions. WSJ Seeking Alpha

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on ARM shares. UBS Group dropped their price target on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research report on Thursday. Royal Bank Of Canada dropped their target price on shares of ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. Morgan Stanley decreased their price target on ARM from $180.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, January 23rd. Finally, Raymond James Financial assumed coverage on ARM in a research report on Friday, November 21st. They issued a “hold” rating on the stock. Seventeen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $162.48.

Institutional Investors Weigh In On ARM

Several large investors have recently added to or reduced their stakes in ARM. Pacific Heights Asset Management LLC increased its stake in shares of ARM by 32.1% during the third quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock valued at $26,176,000 after purchasing an additional 45,000 shares in the last quarter. Orion Porfolio Solutions LLC bought a new position in ARM during the 2nd quarter valued at approximately $6,277,000. Voya Investment Management LLC raised its stake in ARM by 15.5% during the third quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock valued at $28,644,000 after buying an additional 27,228 shares during the last quarter. Stanley Laman Group Ltd. purchased a new position in ARM during the third quarter valued at $6,219,000. Finally, Zevenbergen Capital Investments LLC boosted its holdings in ARM by 4.7% in the third quarter. Zevenbergen Capital Investments LLC now owns 499,772 shares of the company’s stock worth $70,713,000 after acquiring an additional 22,483 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Price Performance

The business has a 50 day moving average price of $117.81 and a 200 day moving average price of $138.52. The stock has a market capitalization of $118.66 billion, a PE ratio of 144.17, a PEG ratio of 6.26 and a beta of 4.35.

About ARM

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.