On Wednesday, Arm Holdings Plc ARM chose not to provide full-year fiscal 2026 guidance, with its chief financial officer citing unpredictable market signals, partner caution, and potential macroeconomic disruptions as key reasons.
What Happened: Speaking on the company’s fourth-quarter earnings call, Arm CFO Jason Child addressed why the semiconductor design giant opted to withhold fiscal 2026 guidance — a departure from its usual practice.
Child explained that while Arm typically offers annual forecasts with a reasonable range to cover expected deal timing, this year’s market environment presented unusually murky signals, particularly from partners and customers.
“Almost none of them are providing full-year guidance,” Child said. “The amount of signal I’m getting from partners, whether it’s through guidance or from other reporting, is just less than I’ve had in the past.”
The CFO also pointed to the broader macroeconomic risks, especially tariff-related uncertainties, which add another layer of unpredictability. “If I provide a range, I’d have to give you an even wider range than I had last year,” he stated. ” I don’t know if it would be that helpful.”
Why It’s Important: Arm Holdings posted quarterly earnings of 55 cents per share, surpassing analyst expectations of 52 cents. Revenue for the quarter reached $1.24 billion, exceeding the $1.23 billion consensus estimate and rising from $928 million in the same period a year ago.
ARM Price Action: Arm’s stock fell 11.63% to $109.75 in after-hours trading on Wednesday, according to data from Benzinga Pro.
ARM Holdings PLC currently holds a consensus price target of $143.81, according to ratings from 32 analysts. The highest target comes from Rosenblatt, which set a price of $225 on Feb. 6, 2025.
The three latest analyst updates from UBS, Wells Fargo, and Barclays collectively assigned an average price target of $146.67, suggesting a potential upside of 33.64%.
Benzinga Edge Stock Rankings gives ARM a momentum score of 55.69%. Click here to see how it compares to other stocks.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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