ARM Earnings

ARM reported its earnings on 2026-02-04, showcasing a revenue of 1.24B against an estimate of 1.24B, resulting in a 0.16% surprise. The EPS was 0.59, surpassing the expected 0.41 by 43.9%. The stock experienced a 5.7% price change on the earnings day and a 20.07% change over the next five days, reflecting market reactions to the results.

Following ARM's earnings announcement on 2026-02-04, the stock price moved by 5.7% on the day of the release. Over the subsequent five days, it saw a 20.07% change. Historically, ARM's stock price tends to shift by an average of -1.07% in the 10 days leading up to earnings and 6.57% in the 10 days following, providing insight into potential market.

For 2026/Q4, analysts estimate ARM's annual revenue to reach 1.44B, while the EPS is projected at 0.56. These estimates reflect recent revisions, with revenue estimates unchanged by 0% and EPS estimates revised downward by -0.04% over the past three months, indicating analyst expectation in the company's performance.

The correlation between ARM's stock price and earnings forecast revisions shows that positive revisions in revenue or EPS often strengthen the stock's fundamentals. Over the past three months, revenue estimates for FY2026 were unchanged by 0%, while EPS estimates moved revised downward by -0.04%. This trend suggests that price dips could present buying opportunities for investors.

Based on historical trends, ARM's stock price typically moves by -1.07% in the 10 days before its earnings and 6.57% in the 10 days after. For the upcoming 2026/Q4 earnings, analysts expect an EPS of 0.56 and revenue of 1.44B.

The earnings call reveals strong financial performance with a 25% revenue growth, robust ACV growth, and a positive outlook on AI trends. Although there are concerns about royalty revenue deceleration and smartphone volume impacts, these are offset by growth in Cloud AI and infrastructure. Management's commitment to R&D and strategic partnerships further enhance the positive sentiment. The Q&A reassures investors about potential risks, and guidance on non-GAAP EPS aligns with expectations. The overall sentiment is positive, likely leading to a stock price increase of 2% to 8% over the next two weeks.