Arm Holdings plc ARM will report its fourth-quarter fiscal 2025 results on May 7, after the bell.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 52 cents, indicating a 44.4% year-over-year growth. The consensus mark for revenues is pegged at $1.23 billion, indicating a 33% year-over-year increase.
One estimate for the to-be-reported quarter has been revised downward over the past 60 days, versus no upward revisions. Over the same period, the Zacks Consensus Estimate for the quarter’s earnings has decreased by 2%.
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The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 18%, on average.
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Our proven model doesn’t conclusively predict an earnings beat for ARM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ARM has an Earnings ESP of 0.00% and a Zacks Rank #3. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year improvement in the company’s top line in the to-be-reported quarter to be driven mainly by an increase in Royalty and License revenues. The consensus estimate for License and other revenues is pegged at $665 million, indicating 60.6% year-over-year growth. The consensus mark for Royalty revenues is pegged at $571 million, suggesting a 11.1% year-over-year decline.
ARM has rallied a massive 39% in the past month. This massive rally has sent the stock to a higher valuation. If we look at the forward 12-month Price/Earnings ratio, ARM shares currently trade at 59.6X forward earnings, well above the industry’s 26.05X.
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Arm Holdings maintains a dominant foothold in the semiconductor industry, especially in mobile device technology. Its low-power chip architecture has long been a critical component in smartphones and tablets. Major tech giants like Apple AAPL, Qualcomm QCOM, and Samsung have consistently relied on ARM’s designs, making the company a backbone of mobile computing. As Apple, Samsung, and Qualcomm expand their product ecosystems, Arm Holdings’ technologies continue to see stable, long-term demand.
