ARM (NASDAQ:ARM) Updates Q1 2027 Earnings Guidance

Key Points

• Q1 2027 guidance: ARM guided EPS of $0.360–$0.440 (above the $0.320 consensus) and revenue of about $1.3B, sending the stock up ~13.6% on heavy volume.
• Recent results and demand drivers: ARM beat Q4 estimates with $0.60 EPS on $1.49B revenue, and management cited accelerating AI/data‑center adoption as the driver behind the upbeat outlook.
• Opportunity and risk: The company’s move toward in‑house data‑center CPUs could expand revenue but creates execution and customer‑conflict risks; analysts remain mixed despite a consensus “Moderate Buy” and a rich valuation (PE ~316).

ARM (NASDAQ:ARM - Get Free Report) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.360-0.440 for the period, compared to the consensus earnings per share estimate of 0.320. The company issued revenue guidance of $1.3 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion.

ARM Trading Up 13.6%

Shares of ARM traded up $28.46 during trading hours on Wednesday, reaching $237.30. 23,786,178 shares of the company's stock traded hands, compared to its average volume of 7,466,469. The stock has a market cap of $250.71 billion, a PE ratio of 316.40, a price-to-earnings-growth ratio of 9.16 and a beta of 3.40. The firm's 50 day simple moving average is $150.26 and its 200-day simple moving average is $137.61. ARM has a 12 month low of $100.02 and a 12 month high of $239.50.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.02. The firm had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.47 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.ARM has set its Q1 2027 guidance at 0.360-0.440 EPS. As a group, analysts expect that ARM will post 0.85 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Citigroup cut ARM from a "buy" rating to a "hold" rating in a report on Tuesday, January 13th. The Goldman Sachs Group raised their price objective on ARM from $110.00 to $125.00 and gave the company a "sell" rating in a report on Thursday, April 9th. UBS Group decreased their price objective on ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a report on Thursday, February 5th. Raymond James Financial raised ARM from a "market perform" rating to an "outperform" rating and set a $166.00 price objective on the stock in a report on Wednesday, March 25th. Finally, Susquehanna raised their price objective on ARM from $170.00 to $210.00 and gave the company a "positive" rating in a report on Thursday, April 16th. Eighteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $177.75.

Insider Buying and Selling

In other news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total value of $3,830,400.00. Following the sale, the chief financial officer directly owned 153,426 shares in the company, valued at approximately $27,616,680. This trade represents a 12.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total value of $1,495,744.15. Following the completion of the sale, the chief executive officer owned 273,680 shares in the company, valued at approximately $44,021,428. This represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 83,712 shares of company stock worth $13,614,730.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Beat Q4 estimates — ARM reported $0.60 EPS vs. $0.58 consensus and $1.49B revenue vs. $1.47B expected; margins and ROE remained healthy. Business Wire: Q4 results
• Positive Sentiment: Upbeat guidance — ARM guided Q1 revenue to ~$1.26B at the midpoint and adjusted EPS to $0.40, above Street estimates, signaling continued strength from AI/data‑center demand. Proactive Investors: Guidance
• Positive Sentiment: AI/data‑center tailwinds — Management cited accelerating adoption of Arm technology in AI and cloud compute, supporting the revenue outlook. Reuters: AI demand
• Positive Sentiment: Bulish market signals — Unusually large call buying (87,690 calls) and a sector rally after AMD/Intel strength lifted chip names, amplifying upside momentum.
• Neutral Sentiment: Strategic shift into in‑house data‑center CPUs — This could expand future revenue pools but changes Arm’s licensing‑centric model and may take time to prove profitable; investors are watching execution and customer dynamics. Yahoo: Business model shift
• Negative Sentiment: Execution & conflict risk — Moving into full CPUs could put Arm in competition with some licensees (cloud providers and chipmakers), creating potential customer pushback and execution risk. Yahoo: Competitive risks
• Negative Sentiment: Valuation/sentiment warnings — Some analysts and technical commentators flagged elevated valuation and the potential for a pullback if execution or growth disappoints. Seeking Alpha: Technical warning

Institutional Investors Weigh In On ARM

Large investors have recently made changes to their positions in the business. CreativeOne Wealth LLC boosted its position in shares of ARM by 5.0% during the fourth quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company's stock valued at $200,000 after purchasing an additional 87 shares in the last quarter. Moors & Cabot Inc. boosted its position in shares of 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 purchasing an additional 103 shares in the last quarter. ICICI Prudential Asset Management Co Ltd boosted its position in shares of 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 purchasing an additional 123 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of ARM by 0.7% during the third quarter. Mercer Global Advisors Inc. ADV now owns 25,362 shares of the company's stock valued at $3,588,000 after purchasing an additional 185 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in shares of ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company's stock valued at $393,000 after purchasing an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

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.

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