ARM (NASDAQ:ARM) Updates Fourth Quarter 2025 Earnings Guidance

On Wednesday, ARM (NASDAQ:ARM) shared an update regarding its earnings guidance for the fourth quarter of 2025. The company provided an estimated earnings per share (EPS) in the range of 0.480 to 0.560 for the period. This figure is slightly different from the consensus EPS estimate, which stands at 0.520. In addition to EPS guidance, ARM also projected revenue of between $1.2 billion and $1.3 billion, aligning with the consensus revenue estimate of $1.2 billion.

ARM Stock Performance

Following the earnings guidance update, shares of ARM increased by 6.8%, trading up $11.06 to reach $173.26. The trading volume was significantly higher than usual, with 13,176,645 shares changing hands compared to the average volume of 7,051,694 shares. ARM now holds a market capitalization of approximately $181.55 billion and exhibits a P/E ratio of 288.77 and a P/E/G ratio of 7.46. The stock’s one-year low is $71.80, while the high is $188.75. The current 50-day moving average stands at $142.65, and the 200-day moving average is at $139.57.

Recent Quarterly Results

ARM's last quarterly earnings report was released on February 5, where the company reported an EPS of $0.24, which fell short of expectations by $0.10, as analysts had anticipated an EPS of $0.34. The company managed a return on equity of 13.69% with 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' Outlook for ARM

Wall Street analysts have been weighing in on ARM's stock. Recent reports from various brokerages show differing opinions. UBS Group made headlines by initiating coverage on ARM, assigning a "buy" rating and a price target of $160.00. Loop Capital also expressed optimism, raising their price target from $130.00 to $180.00 while maintaining a "buy" rating. Meanwhile, Sanford C. Bernstein changed their stance from "market perform" to "underperform" with a price target of $100.00. Other analysts like Evercore ISI increased their target for ARM from $173.00 to $176.00, rating it as "outperform." Additionally, TD Cowen raised their price target from $150.00 to $165.00 alongside a "buy" rating. The consensus among analysts includes ratings where two have a sell rating, six suggest holding, eighteen are in favor of buying, and one recommends a strong buy, leading to an average rating of "Moderate Buy" and a price target of $152.09.

About ARM Holdings

ARM Holdings plc is a prominent player in the semiconductor sector. The company specializes in designing, developing, and licensing microprocessor products and associated technologies. These products are crucial for various semiconductor companies and original equipment manufacturers as they create new technologies and products. ARM's offerings include microprocessors, graphic processing units, intellectual property, software tools, and related services.

Earnings, Guidance, Revenue