on wednesday, ARM Holdings plc arm The key financial directors chose not to provide guidance for the full year fiscal 2026, citing unpredictable market signals, partner attention and potential macroeconomic disruptions as key reasons.
what happened: Talk about the company’s fourth quarter revenue call, ARM CFO Jason Child Addressed the reason why Semiconductor Design Giant chose to withhold the Fiscal 2026 guidance. This is a departure from normal practice.
The child explained that while ARMs usually provide reasonable range of annual forecasts to cover the timing of expected transactions, this year’s market environment has presented unusually vague signals, particularly from partners and customers.
“None of them provide year-round guidance,” the child said. “The amount of signal I get from my partner is less than I’ve had in the past, whether it’s through guidance or from other reports.”
The CFO also pointed out broader macroeconomic risks, particularly tariff-related uncertainty, adding another layer of unpredictability. “If I’m going to provide range, I need to give you even more scope than last year,” he said. “I don’t know if that’s that helpful.”
Why is it important: ARM Holdings recorded quarterly profits of 55 cents per share, surpassing the expectations of 52 cents analysts. Quarterly revenue reached $1.24 billion, exceeding the consensus estimate of $1.23 billion, up from $928 million in the same period last year.
Arm Price Action: ARM shares fell 11.63% to $109.75 in after-hours trading on Wednesday. Benzinga Pro data.
ARM Holdings PLC currently holds a consensus price target of $143.81, according to ratings from 32 analysts. The best goal is from Rosenblatt, which will price $225 on February 6th, 2025.
Three latest analyst updates from UBS, Wells Fargo and Barclays collectively allocate an average price target of $146.67, suggesting a potential upside of 33.64%.
The Benzinga Edge Stock Ranking gives ARM a momentum score of 55.69%. Click here to see how it compares to other strains.
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Disclaimer: This content was created in part with the help of AI tools and was reviewed and published by the Benzinga editor.
