Arteris (NASDAQ:AIP) Issues Earnings Results, Beats Expectations By $0.03 EPS

Arteris (NASDAQ:AIP) posted its quarterly earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03, FiscalAI reports. The business had revenue of $20.14 million during the quarter, compared to analyst estimates of $18.55 million.

Here are the key takeaways from Arteris’ conference call:

• Record commercial momentum — Arteris reported ACV plus royalties of $83.6M (+28% YoY), Q4 revenue of $20.1M (+30% YoY), and RPO of $117M (+32% YoY), with variable royalties up ~50% YoY.
• Strong profitability and balance sheet — Non‑GAAP gross margin was ~92%, the company finished with $59.5M in cash and no debt, and generated positive free cash flow for the year.
• Acquisition of Cycuity — Closed Jan 14, 2026, adding semiconductor cybersecurity assurance tools that expand addressable market and cross‑sell opportunities (guidance includes ~ $7M revenue from Cycuity in 2026, with a modest ~ $1M expected near‑term drag and ~1–2pp gross margin accounting impact).
• Bullish 2026 outlook and path to profitability — Guidance targets ACV exit of $100–104M and revenue of $89–93M (including Cycuity), with management expecting a non‑GAAP operating profit as early as Q4 2026.
• Product and customer momentum — AI‑focused products like FlexGen (licensed for 30+ production deployments) and Ncore/FlexNoC saw increased adoption by customers such as AMD, NXP, Black Sesame and Blaize, while chiplet projects using Arteris tech have more than tripled in two years.

Arteris Trading Down 2.7%

NASDAQ:AIP traded down $0.41 on Friday, hitting $14.51. 533,025 shares of the company’s stock traded hands, compared to its average volume of 449,945. The company has a market cap of $633.80 million, a PE ratio of -17.55 and a beta of 1.47. Arteris has a 1 year low of $5.46 and a 1 year high of $19.85. The firm has a 50-day moving average price of $16.28 and a 200-day moving average price of $13.24.

Insider Transactions at Arteris

In related news, VP Paul L. Alpern sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $15.48, for a total transaction of $77,400.00. Following the completion of the sale, the vice president directly owned 57,650 shares in the company, valued at approximately $892,422. This trade represents a 7.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO K Charles Janac sold 2,756 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $15.03, for a total transaction of $41,422.68. Following the transaction, the chief executive officer directly owned 9,349,071 shares in the company, valued at $140,516,537.13. The trade was a 0.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 689,072 shares of company stock valued at $11,525,611 over the last three months. 29.10% of the stock is owned by corporate insiders.

Institutional Trading of Arteris

Several hedge funds and other institutional investors have recently modified their holdings of AIP. Charles Schwab Investment Management Inc. grew its stake in Arteris by 19.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 94,888 shares of the company’s stock valued at $1,471,000 after purchasing an additional 15,147 shares in the last quarter. State Street Corp raised its stake in shares of Arteris by 39.5% during the 4th quarter. State Street Corp now owns 760,113 shares of the company’s stock worth $11,782,000 after purchasing an additional 215,160 shares in the last quarter. Ieq Capital LLC lifted its holdings in shares of Arteris by 154.1% during the 4th quarter. Ieq Capital LLC now owns 71,210 shares of the company’s stock valued at $1,104,000 after buying an additional 43,181 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Arteris in the 4th quarter valued at approximately $273,000. Finally, Wells Fargo & Company MN increased its holdings in Arteris by 45.6% in the fourth quarter. Wells Fargo & Company MN now owns 36,662 shares of the company’s stock worth $568,000 after buying an additional 11,476 shares during the last quarter. 64.36% of the stock is currently owned by hedge funds and other institutional investors.

Key Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Q4 2025 results beat expectations — EPS of ($0.05) vs consensus ($0.08) and revenue of $20.14M vs $18.55M, signaling improving top‑line momentum. Read More.
• Positive Sentiment: Company issued above‑consensus revenue guidance: Q1 2026 revenue $20.5M–$21.5M (consensus ~ $18.9M) and FY2026 revenue $89M–$93M (consensus ~ $83.4M) — a near‑term growth target that could underpin multiples if execution follows. Read More.
• Positive Sentiment: Commercial validation: Arteris reports its NoC technology has shipped in over 4 billion chips/chiplets and NXP expanded use of Arteris IP across AI‑enabled SoC/NPU/MCU designs — strengthens TAM exposure in edge AI and automotive. Read More. Read More.
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a Buy and $20 PT, and several institutions have added shares recently; that research/institutional interest can support upside if growth continues. Read More.
• Neutral Sentiment: Management commentary and full earnings/call transcript available — useful for parsing bookings, contract pipeline and margin trajectory. Read More.
• Neutral Sentiment: Strategic update: company flagged a $100M+ contract‑value target for 2026 and acquisition activity to bolster chip security (Cycuity) — potential long‑term upside but execution dependent. Read More.
• Negative Sentiment: Insider selling: CEO K. Charles Janac and major shareholder Bayview Legacy have sold material blocks in recent days/weeks (e.g., 47,244 shares on Feb 9 + 2,756 on Feb 10) — recurring insider sales can weigh on investor sentiment and add supply. Read More.
• Negative Sentiment: Company remains unprofitable on a GAAP basis and sell‑side median still forecasts negative FY EPS (consensus ~ -0.73), so valuation depends on revenue acceleration and path to profitability. Read More.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Arteris in a report on Wednesday, January 21st. Jefferies Financial Group upgraded Arteris to a “hold” rating in a report on Tuesday, October 28th. Rosenblatt Securities reiterated a “buy” rating and issued a $20.00 target price on shares of Arteris in a report on Friday. TD Cowen reissued a “buy” rating on shares of Arteris in a research report on Wednesday, November 5th. Finally, Northland Securities set a $24.00 price target on shares of Arteris in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $20.17.

Arteris Company Profile

Arteris, Inc is a fabless semiconductor intellectual property (IP) company specializing in on-chip interconnect solutions and system IP for advanced integrated circuits. The company’s core products include its FlexNoC network-on-chip (NoC) fabrics, Ncore cache coherent interconnect IP, and CodaCache memory subsystem IP. These technologies enable semiconductor and systems companies to design scalable, energy-efficient chips for applications ranging from automotive and artificial intelligence (AI) to 5G communications and high-performance computing.

Founded in 2003 and headquartered in Santa Clara, California, Arteris serves a global customer base across North America, Europe, and Asia.