ARM Updates Q4 2025 Earnings Guidance

ARM (NASDAQ:ARM) announced an update to its earnings guidance for the fourth quarter of 2025. The company indicated that it expects earnings per share (EPS) to fall between 0.480 and 0.560 for the quarter. This range is slightly above the consensus estimate among analysts, which stands at 0.520. In addition to EPS guidance, ARM has also projected revenue for the same period, estimating it will range from $1.2 billion to $1.3 billion. This projected revenue is in line with the consensus estimate of $1.2 billion.

ARM Stock Performance

On the day of the announcement, ARM's stock rose by 6.8%. The share price increased by $11.06, reaching $173.26. Over 13 million shares were traded, significantly higher than the average trading volume of about 7 million shares. Currently, ARM has a market capitalization of approximately $181.55 billion, with a price-to-earnings (P/E) ratio of 288.77. The company also reports a P/E growth (P/E/G) ratio of 7.46 and a beta of 4.56. In the past year, ARM's stock has seen fluctuations, with a low of $71.80 and a high of $188.75. The 50-day moving average price for ARM is approximately $142.65, and the 200-day moving average is around $139.57.

Recent Earnings Results

ARM had previously reported its quarterly earnings on February 5th. For that quarter, the company recorded earnings of $0.24 per share, which fell short of analysts' expectations of $0.34 by $0.10. Despite this, ARM delivered a return on equity of 13.69% and maintained a net margin of 18.13%. Looking ahead, research analysts predict that ARM will achieve an EPS of 0.84 for the current fiscal year.

Analysts' Perspectives on ARM

In light of recent developments, various brokerage firms have updated their ratings and price targets for ARM stock. UBS Group initiated coverage with a "buy" rating and a target price of $160.00. Loop Capital raised their price target from $130.00 to $180.00, maintaining a "buy" rating. Conversely, Sanford C. Bernstein downgraded ARM from a "market perform" to an "underperform" rating, setting a target at $100.00. Evercore ISI adjusted their price target upwards to $176.00, maintaining an "outperform" rating, while TD Cowen increased their target to $165.00 with a "buy" rating. Overall, among the analysts, ARM has received two sell ratings, six hold ratings, eighteen buy ratings, and one strong buy rating. According to MarketBeat.com, ARM currently enjoys a "Moderate Buy" average rating with a target price average of $152.09.

About ARM Holdings

ARM Holdings plc is involved in designing and licensing microprocessors and related technologies for the semiconductor industry. Their offerings include microprocessors, various system designs, intellectual property (IP) systems, graphics processing units, software, tools, and other services that aid original equipment manufacturers in product development.

ARM, Earnings, Shares