What Analysts Are Saying About ARM Holdings Stock

Across the recent three months, 15 analysts have shared their insights on ARM Holdings ARM, expressing a variety of opinions spanning from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated ARM Holdings and provided 12-month price targets. The average target is $152.2, accompanied by a high estimate of $187.00 and a low estimate of $115.00. Highlighting a 12.99% decrease, the current average has fallen from the previous average price target of $174.93.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of ARM Holdings by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to ARM Holdings. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ARM Holdings compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of ARM Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on ARM Holdings analyst ratings.

Unveiling the Story Behind ARM Holdings

Arm Holdings is the IP owner and developer of the ARM architecture, which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Unraveling the Financial Story of ARM Holdings

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: ARM Holdings displayed positive results in 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 33.73%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: ARM Holdings's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.92%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): ARM Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.17%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): ARM Holdings's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.41% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.05, ARM Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.