ARM Issues Q4 2025 Earnings Guidance

ARM (NASDAQ:ARM) has recently updated its earnings guidance for the fourth quarter of 2025. The company has forecasted earnings per share (EPS) in the range of 0.480 to 0.560. This is slightly above the consensus estimate of 0.520. Additionally, ARM has set its revenue expectations between $1.2 billion and $1.3 billion, aligning with the consensus revenue estimate of $1.2 billion.

Stock Performance

Following the announcement, ARM's stock experienced a notable increase of 6.8%, rising by $11.06 to reach a trading price of $173.26 on Wednesday. The trading volume for the day was 13,176,645 shares, which significantly exceeded its average volume of 7,051,694 shares. Currently, ARM has a market capitalization of approximately $181.55 billion. Its price-to-earnings (P/E) ratio stands at 288.77, with a P/E growth (P/E/G) ratio of 7.46 and a beta value of 4.56. Over the past year, the stock has fluctuated, with a low of $71.80 and a high of $188.75. The stock's 50-day moving average is $142.65, while its 200-day moving average is $139.57.

Recent Financial Results

On February 5th, the company reported its quarterly earnings, showing an EPS of $0.24 for the period. This result fell short of analysts' expectations, which had anticipated an EPS of $0.34. ARM's return on equity was recorded at 13.69%, and it maintained a net margin of 18.13%. Analysts are forecasting that ARM will achieve an EPS of 0.84 for the current fiscal year.

Analyst Predictions and Ratings

Several financial institutions have recently provided insights regarding ARM’s stock performance. UBS Group has initiated coverage, giving ARM a "buy" rating with a target price of $160.00. Loop Capital has raised its target price from $130.00 to $180.00, also assigning a "buy" rating to the stock. In contrast, Sanford C. Bernstein downgraded ARM from a "market perform" rating to "underperform," setting a price target of $100.00. Additionally, Evercore ISI increased their price objective from $173.00 to $176.00 and maintained an "outperform" rating. Similarly, TD Cowen raised its price target from $150.00 to $165.00 and recommended a "buy" rating. In total, two analysts have assigned a sell rating, six have issued hold ratings, and eighteen analysts are recommending a buy rating, with one providing a strong buy rating. The average rating for ARM’s stock is classified as a "Moderate Buy" with a typical price target of $152.09.

About ARM Holdings

ARM Holdings plc is a company that specializes in designing and licensing central processing unit products and related technologies. These offerings are crucial for semiconductor companies and original equipment manufacturers who rely on them to create innovative products. ARM's product line includes microprocessors, intellectual property (IPs) for systems, graphics processing units, and various software and tools.

Earnings, Stock, Guide