**Arm Holdings plc (ARM)** will release its first-quarter fiscal 2027 earnings report on **July 29**, with expected earnings of **40 cents per share**, reflecting a **14.3% year-over-year increase**. Revenue is projected at **$1.27 billion**, indicating a **20.3% year-over-year increase**. Despite a history of surpassing earnings estimates, the current model shows a **-1.06% earnings surprise potential**, with ARM holding a Zacks Rank of **3 (Hold)**.
The consensus for **royalty revenues** stands at **$707.1 million**, down **20.9% year-over-year**, while **license and other revenues** are expected to reach **$560.4 million**, a **19.7% year-over-year decline**. ARM’s stock has surged **138%** in the past six months, now trading at a price-to-earnings ratio of **107.76**, significantly above the industry average of **25.97**.
Analysts suggest that, while ARM’s fundamentals remain strong with its expanding AI infrastructure role, elevated valuations limit potential for significant growth, positioning ARM as a **Hold** for investors.
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