
ARM Stock Forecast & Price Target
ARM Analyst Ratings
Bulls say
ARM Holdings demonstrates a strong financial outlook, projecting revenue growth of 24% annually to reach $3.99 billion by 2025, while earnings per share (EPS) are anticipated to increase significantly by 345% year-over-year to $1.60. The company's recent quarterly performance highlights a record 32% annual revenue increase, primarily driven by a 9% growth in royalties and an impressive 60% surge in its licensing business. Notably, ARM's royalty revenue experienced a 23% year-over-year growth during the December quarter, buoyed by the adoption of its newer v9 architecture, outpacing trends in the broader wireless market, thereby indicating strong demand for its technology solutions.
Bears say
ARM Holdings reported a slight decline in Remaining Performance Obligations (RPO), with figures dropping to $2.3 billion from $2.4 billion in the previous quarter, indicating potential challenges in future revenue generation. The company anticipates a decrease in royalty revenues for the upcoming quarter due to smartphone seasonality and a pullback in IoT revenues, despite an offset from record licensing revenue driven by large renewals. Additionally, ARM's stagnation in Armv9 revenue contribution, consistently at 25% over the past three quarters, raises concerns about its profitability and growth prospects, especially amidst a maturing mobile market characterized by elongated replacement cycles and economic softness.
This aggregate rating is based on analysts' research of ARM Holdings PLC and is not a guaranteed prediction by Public.com or investment advice.
ARM Analyst Forecast & Price Prediction
Start investing in ARM
Order type
Buy in
Order amount
Est. shares
0 shares