Is ARM’s Upcoming Q4 Earnings a Sign to Buy the Stock?

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Arm Holdings plc (ARM) will report its fourth-quarter fiscal 2026 results on May 6, 2026. The Zacks Consensus Estimate anticipates earnings of 58 cents per share, reflecting a 5.5% year-over-year increase, with expected revenues of $1.47 billion, an 18.2% rise from the previous year.

Despite a strong history of earnings surprises, with an average of 7.9% over the last four quarters, ARM does not currently demonstrate a conclusive potential for an earnings beat as per the earnings ESP model. The forecast for Royalty revenues is $696.71 million, indicating a 19% year-over-year decline, while License and other revenues are estimated at $769.66 million, showing a 64.5% drop.

As of now, ARM’s stock has appreciated by 19% in the past six months but trades at a forward price-to-earnings ratio of 90.52, triple the industry average of 31.17, suggesting limited upside potential at current valuations.

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