ARM Earnings
Wednesday, May 06 2026
EPS Estimate
$0.58
$0.52 – $0.60
Revenue Estimate
$1.5B
Track Record
3/4 beats
Current Price
$161.22
Our Position
neutralMorgan Stanley Downgrades ARM Amid Transition Risks
structured data
est. revisions stable
(-0.3pp / 30d)
The pivot to chip manufacturing strains ARM's margins and partner relations, threatening to slow commercial growth despite a leading industry position and a $152B market cap.
Watch: Q2 earnings will reveal progress on AI chip cost control, margin recovery, and the impact of supply constraints on ARM's expansion.
Data Signal Summary
4 bullish
1 bearish
Insider selling cluster
Put/call 0.5 (bullish skew)
Analysts: bullish
Price uptrend
High confidence (0.85)
Prior Call Analysis
2026Q2Management communicates with high confidence and specificity, employs moderate hedging mainly on future product details, and shows mostly direct answers with minimal evasions.
Hedging
0.15
Confidence
0.85
Avoided Qs
2
detailed product timeline for new compute subsystems and chiplets
duration and sustainability of related party revenues from SoftBank
Language shifts vs prior quarter:
- Emphasis on power constraints as strategic opportunity
- Repeated highlighting of AI as core growth driver
- New emphasis on strategic partnership with SoftBank and OpenAI in Stargate project
- Cautious language about new product launches and timelines
- Focus on R&D investment acceleration
Key Context
Analyst Consensus
bullish
Insider Activity
selling
Price Trend
uptrend
1-Month Return
+36.9%
From 52w High
-11.8%
P/E Ratio
201.3
Est. Revisions (30d)
-0.4% 0up/2dn
Analyst Target (mean)
$168 $95–$240 +4%
Options P/C Ratio
0.54
Est. Dispersion
14% 28 analysts
Insider Cluster
strong sell
Fund Convergence
strong Citadel, Coatue, D.E. Shaw, Two Sigma, Renaissance
Recent Activity
insider trades
4 transactions
Sell
·
CHILD JASON E (Chief Financial Officer)
·21,280 shares
·$3,157,314
Sell
·
HAAS RENE A (Chief Executive Officer)
·31,853 shares
·$5,131,328
Sell
·
Haas Rene A. (Chief Executive Officer)
·200 shares
·$32,630
20d ago
Sell
·
Haas Rene A. (Chief Executive Officer)
·1,092 shares
·$178,378
21d ago
analyst ratings
14 ratings
Goldman Sachs
→Sell
5d ago
Morgan Stanley
·down
→Equal-Weight
8d ago
Mizuho
→Outperform
9d ago
Wells Fargo
→Overweight
13d ago
Barclays
→Overweight
20d ago
9 more
Needham
→Buy
Evercore ISI Group
→Outperform
Rosenblatt
→Buy
Deutsche Bank
→Hold
RBC Capital
→Outperform
Wells Fargo
→Overweight
Guggenheim
→Buy
Raymond James
→Outperform
HSBC
→Buy
earnings
4
transcript
1
4d ago
Explore more
