ARM (NASDAQ:ARM) Issues Q2 2026 Earnings Guidance

Key Points

• ARM has provided its Q2 2026 earnings guidance with an expected EPS of 0.290-0.370 and revenue guidance of $1.0 billion-$1.1 billion, both figures diverging slightly from consensus estimates.
• During trading on Thursday, ARM stock dropped $21.94 to close at $141.38, experiencing unusually high trading volume of over 22 million shares.
• Analysts have mixed views on ARM, with ratings including one sell, seven holds, and twenty buys, influencing an average target price of $165.13.

ARM (NASDAQ:ARM - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 0.290-0.370 for the period, compared to the consensus EPS estimate of 0.354. The company issued revenue guidance of $1.0 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

ARM Price Performance

Shares of ARM stock traded down $21.94 during trading hours on Thursday, hitting $141.38. The stock had a trading volume of 22,560,981 shares, compared to its average volume of 5,566,511. The firm has a market capitalization of $149.37 billion, a PE ratio of 188.51, a PEG ratio of 9.36 and a beta of 4.19. ARM has a twelve month low of $80.00 and a twelve month high of $182.88. The stock's 50 day moving average is $146.56 and its 200 day moving average is $134.48.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.01. The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.06 billion. ARM had a return on equity of 17.97% and a net margin of 19.76%. The company's revenue was up 12.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.40 earnings per share. As a group, equities analysts predict that ARM will post 0.9 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Benchmark reiterated a "hold" rating on shares of ARM in a research report on Monday, June 9th. The Goldman Sachs Group assumed coverage on shares of ARM in a report on Thursday, July 10th. They issued a "neutral" rating and a $160.00 target price for the company. Wells Fargo & Company increased their target price on shares of ARM from $145.00 to $175.00 and gave the company an "overweight" rating in a report on Monday, July 21st. JPMorgan Chase & Co. reduced their price objective on ARM from $175.00 to $150.00 and set an "overweight" rating for the company in a report on Thursday, May 8th. Finally, Citigroup reduced their price objective on ARM from $200.00 to $170.00 and set a "buy" rating for the company in a report on Thursday, May 8th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, twenty have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $165.13.

Institutional Trading of ARM

An institutional investor recently raised its position in ARM stock. Amundi boosted its stake in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 24.8% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 11,804 shares of the company's stock after purchasing an additional 2,345 shares during the quarter. Amundi's holdings in ARM were worth $1,153,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 7.53% of the company's stock.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.

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