ARM (NASDAQ:ARM) Issues Q1 2027 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.360-0.440 for the period, compared to the consensus EPS 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 Stock Up 2.4%

Shares of NASDAQ ARM opened at $218.35 on Friday. The company has a market capitalization of $230.68 billion, a PE ratio of 260.29, a P/E/G ratio of 10.67 and a beta of 3.40. ARM has a twelve month low of $100.02 and a twelve month high of $239.50. The firm has a fifty day simple moving average of $154.24 and a 200 day simple moving average of $138.41.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.80% and a net margin of 18.37%. As a group, equities analysts expect that ARM will post 1.18 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

ARM has been the topic of a number of research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. UBS Group decreased their price target on shares of ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Needham & Company LLC increased their price objective on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday. Wells Fargo & Company raised their target price on ARM from $220.00 to $255.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a research report on Thursday. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average target price of $195.91.

Insider Transactions at ARM

In related news, CFO Jason Child sold 21,280 shares of the firm’s stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 83,712 shares of company stock valued at $13,614,730 over the last quarter.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly beat and upbeat guidance — Arm beat revenue and EPS estimates, guided first‑quarter revenue above Street expectations and disclosed more than $2 billion of customer demand for its new data‑center CPU, supporting the long‑term AI thesis. Arm forecasts upbeat revenue
• Positive Sentiment: Analyst upgrades and higher targets — Several firms (Wells Fargo, Guggenheim, Needham, Rosenblatt, Mizuho) raised price targets or reiterated bullish ratings after the results, supporting upside views on Arm’s AI opportunity. Analyst coverage roundup
• Positive Sentiment: Goldman’s recent (5/8) forecast framed as constructive — a fresh note highlighted the opportunity and updated its outlook in a way that some investors read as supportive. Goldman Sachs issues forecast
• Neutral Sentiment: CEO commentary: AI demand offsetting phone slump — Management told media that cloud AI demand is growing strongly while smartphone revenue is slowing; this helps the long‑term story but complicates near‑term optics. Bloomberg Tech interview
• Neutral Sentiment: Industry factors: AI-driven component shortages could push smartphone prices higher — broader memory/supply dynamics may indirectly affect Arm’s handset revenue and timing. Investopedia on smartphone pricing
• Negative Sentiment: Smartphone weakness and supply constraints knocked shares lower — despite the beat, management warned the phone market is soft and capacity to meet surging AI demand may be limited; that message triggered a >10% intraday drop as investors worried about near‑term monetization. Chip designer warns of smartphone weakness
• Negative Sentiment: Execution and valuation concerns — Bank of America and other analysts warned the AI CPU growth story may already be priced in and that execution/timing risks could limit near‑term upside. ProactiveInvestors on investor concerns
• Negative Sentiment: Volatility: after‑hours rally erased overnight — investors saw a large after‑hours spike on the beat, then profit‑taking and skepticism wiped out gains, illustrating short‑term trading risk. Invezz on volatility

Institutional Investors Weigh In On ARM

Several institutional investors have recently bought and sold shares of the stock. FWL Investment Management LLC purchased a new stake in ARM in the 2nd quarter valued at $34,000. Mcguire Capital Advisors Inc. bought a new stake in shares of ARM in the 4th quarter worth $30,000. WFA of San Diego LLC purchased a new stake in shares of ARM in the second quarter valued at about $49,000. Intesa Sanpaolo Wealth Management bought a new position in shares of ARM during the fourth quarter valued at about $52,000. Finally, Greenline Wealth Management LLC bought a new position in shares of ARM during the fourth quarter valued at about $56,000. Institutional investors own 7.53% of the company’s stock.

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.