Throughout the last three months, 17 analysts have evaluated ARM Holdings ( ARM ) , offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for ARM Holdings ( ARM ), presenting an average target of $164.88, a high estimate of $210.00, and a low estimate of $115.00. Marking an increase of 1.12%, the current average surpasses the previous average price target of $163.06.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive ARM Holdings ( ARM ) is derived from recent analyst actions. The following is a detailed summary of 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 ( ARM ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of ARM Holdings ( ARM ) compared to the broader market.

Price Targets: Delving into movements, analysts provide estimates for the future value of ARM Holdings's ( ARM ) stock. This analysis reveals shifts in analysts' expectations over time.

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

Stay up to date on ARM Holdings ( ARM ) analyst ratings.

Unveiling the Story Behind ARM Holdings

Arm Holdings ( ARM ) 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.

ARM Holdings: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: ARM Holdings ( ARM ) 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 ( ARM ) net margin excels beyond industry benchmarks, reaching 16.92%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): ARM Holdings's ( ARM ) ROE stands out, surpassing industry averages. With an impressive ROE of 3.17%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): ARM Holdings's ( ARM ) 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.05.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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