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ARM · Analysis updated Nov 5, 2026, 9:45 AM ET
Why is Arm Holdings (ARM) stock moving?
Arm beat fiscal Q2 2027 expectations, with adjusted EPS of $0.52 against $0.47 and revenue of $1.44B against $1.38B. Licensing revenue rose 50% to $773M, well above the $625M estimate. Royalties of $670M missed the roughly $721M estimate, which is the main reason the market sold the news. Q3 revenue guidance of $1.54B was only slightly above the $1.53B consensus. Management said it has more confidence in up to $2B of AGI CPU sales across fiscal 2027 and 2028. The stock closed Nov 4 at $191.80, down 5.28%, on volume of about 195K in the data provided, roughly double a normal day. It traded lower again premarket at about $183, and it is down about 34% in a month. Sector selling is adding pressure. Investors are rotating out of semiconductors and AI shares, and Dan Ives warned of another 10-12% downside, while Tom Lee called the selloff an overreaction. Goldman holds a Sell with a $160 target and HSBC trimmed its target to $215. The average target is about $291, well above the current price. Valuation is rich, with a trailing P/E near 195, and beta is about 3.9, so swings can be large. The trend is clearly down and the latest close is below the recent lows near $196.
News behind the analysis
- Arm Holdings slips even as Q2 results, guidance top estimatesArm reported adjusted EPS of $0.52 and revenue of $1.44B, both above estimates. Q3 revenue guidance is $1.54B, plus or minus $50M, and shares fell 1.8% after hours.
- Arm Holdings (ARM) Stock Beat Earnings. So Why Did Investors Hit Sell?Arm closed at $191.80, down 5.28%. Royalties of $670M missed the $720.8M estimate, while licensing of $773M beat the $625.1M estimate.
- Goldman Sachs reiterates Arm Holdings stock Sell rating on royalty weaknessGoldman kept its Sell rating and $160 target and expects the stock to trade in a range. HSBC cut its target from $230 to $215 and kept Hold after royalties came in weaker.
- Goldman Sachs reiterates Sell rating on Arm Holdings stockGoldman flagged strong licensing offset by much lower royalties. Management said it is more confident about up to $2B in AGI CPU customer demand.
- Arm Shares Fall as Third-Quarter Outlook Offers Limited Upside Despite Earnings BeatShares fell more than 3% premarket. Q3 guidance was only slightly above consensus, and HSBC named server royalties as the key earnings driver.
- Arm Stock Is Falling Thursday: What's Going On?Arm fell nearly 5% premarket as investors pulled back from semiconductor and AI stocks. Dan Ives warned chips could fall another 10-12%, while Tom Lee called the selloff an overreaction.
- Arm Holdings Shares Drop 4.52% in Premarket Despite Strong Q2 EarningsLicensing revenue rose 50% to $773M and royalties rose 8% to $670M. Shares traded at $183.12 premarket on Nov 5.
- ARM Holdings earnings setup: Key item to watch for this oversold stockThe preview noted that beats have not reliably produced rallies and that guidance, not the beat, was the swing factor. It also flagged a strong downtrend and a daily range of about 7%.
- Arm Q2 Earnings Preview: Can Data Center Royalties Continue Doubling Growth?Ahead of the report, investors were watching data center royalties, licensing and whether the new AGI CPU can generate revenue.