Arm Holdings plc (NASDAQ: ARM) is preparing to release its financial results for the third quarter after the closing bell on Wednesday, February 4. Market analysts anticipate that the company will report earnings per share of 41 cents, marking an increase from 39 cents per share recorded in the same quarter last year. Consensus revenue estimates stand at approximately $1.23 billion, up from $983 million reported a year earlier, based on data collated from Benzinga Pro.
In the preceding quarter, Arm Holdings posted stronger-than-expected financial results and provided third-quarter guidance that surpassed analyst forecasts. This positive performance underscored the company’s resilience and growth momentum. However, despite this progress, Arm’s stock experienced a decline of 2.2% in the most recent session, closing at $104.55 per share on Tuesday.
Investor interest remains high as the sector closely follows Arm’s earnings release, considering the company’s role in the semiconductor design industry and implications for broader technology markets.
Leading up to the earnings announcement, several prominent equity analysts have updated their outlooks on Arm Holdings, demonstrating a range of perspectives.
- UBS analyst Timothy Arcuri issued a Buy rating for the stock but trimmed the price target from $195 to $175 on January 26, 2026. This analyst’s historical rating accuracy is recorded at 85%, suggesting strong reliability in his evaluations.
- Wells Fargo’s Joe Quatrochi maintained an Overweight rating, reflecting a favorable stance on the stock, though he lowered the price target from $195 to $160 on the same date. Quatrochi’s accuracy rate stands at 56%, indicating a moderate level of forecast precision.
- On January 15, 2026, RBC Capital’s Srini Pajjuri initiated coverage of Arm Holdings with an Outperform rating and set a price target at $140. Pajjuri demonstrates a high analyst accuracy rate of 84%.
- B of A Securities’ Vivek Arya downgraded Arm Holdings from Buy to Neutral and set the price target at $120 on January 13, 2026. Arya is notable for a very high accuracy rate of 93% in past assessments.
- Goldman Sachs analyst James Schneider also lowered the rating from Neutral to Sell and reduced the price target from $160 to $120 on December 15, 2025. Schneider's analyst accuracy is rated at 65%.
The wide range of analyst opinions, particularly the divergences in price targets between $120 and $175, reflects differing assessments of Arm’s current market positioning and future prospects. These adjustments come in the context of a significant share price drop in recent trading, highlighting investor caution ahead of the earnings release.
Benzinga provides tools to explore analyst ratings for investors seeking detailed insights. The Analyst Stock Ratings page offers data sortable by multiple parameters including ticker, rating changes, and firms, which might assist stakeholders in gauging broader market consensus.
The current stock price around $104.55 juxtaposed with mixed analyst projections and varying price targets underscores an uncertain market sentiment. This makes the upcoming earnings release a critical event for confirming Arm’s financial health and guiding investor decisions.
Beyond the earnings, Arm Holdings remains an important player in semiconductor design, influencing various facets of technology manufacturing and innovation. The anticipation encapsulated in the diverse analyst opinions signals both opportunities and challenges in the near term.