On July 30, ARM Holdings declined 5.63% overnight, trading at $211.0/share, with turnover of $101,100.
On the news front, ARM released its fiscal Q1 2027 results after market close, reporting adjusted EPS of $0.45 versus the consensus estimate of $0.40, and revenue of $1.29 billion versus the expected $1.26 billion, representing approximately 22.7% year-over-year growth. Despite the across-the-board earnings beat, the company noted that smartphone industry growth weakness overshadowed opportunities from its data center expansion. ARM guided Q2 revenue of approximately $1.38 billion (range $1.33B-$1.43B), which, while above the FactSet consensus of $1.34 billion, fell short of the most optimistic market expectations, triggering profit-taking. Additionally, multiple institutions had recently cut target prices ahead of the report — Wells Fargo lowered its target from $410 to $350, UBS from $470 to $360, and HSBC downgraded from Buy to Hold — further pressuring valuation sentiment.
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