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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price shot up 7.1% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $112.28 and last traded at $112.3840. 13,566,017 shares changed hands during trading, an increase of 93% from the average session volume of 7,042,964 shares. The stock had previously closed at $104.90.

The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. ARM had a net margin of 18.81% and a return on equity of 15.03%. The business’s revenue for the quarter was up 26.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS.

ARM News Roundup

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 Analyst Weigh In

A number of analysts have commented on ARM shares. Loop Capital lifted their target price on ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a report on Wednesday, November 12th. Mizuho reduced their price objective on ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a report on Thursday. The Goldman Sachs Group cut shares of ARM from a “neutral” rating to a “sell” rating and lowered their target price for the company from $160.00 to $120.00 in a research note on Monday, December 15th. Jefferies Financial Group set a $170.00 price target on shares of ARM in a research note on Thursday. Finally, UBS Group lowered their price objective on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research report on Thursday. Seventeen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average target price of $162.48.

Institutional Investors Weigh In On ARM

Hedge funds have recently modified their holdings of the business. Compound Planning Inc. increased its stake in shares of ARM by 4.6% in the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after purchasing an additional 69 shares in the last quarter. Ritholtz Wealth Management grew its holdings in ARM by 3.0% during the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after purchasing an additional 70 shares during the period. Rathbones Group PLC increased its position in ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after buying an additional 70 shares in the last quarter. Nwam LLC increased its position in ARM by 4.3% in the third quarter. Nwam LLC now owns 1,711 shares of the company’s stock worth $242,000 after buying an additional 71 shares in the last quarter. Finally, Kovack Advisors Inc. raised its stake in shares of ARM by 2.0% in the third quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after buying an additional 72 shares during the period. Institutional investors own 7.53% of the company’s stock.

ARM Stock Performance

The stock has a 50-day moving average price of $117.81 and a two-hundred 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.

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.