Arm plc(US:ARM) 智通财经网·2025-08-01 02:15Core Viewpoint - Arm's stock price fell over 13% after the release of its Q1 FY2026 earnings report, but analysts believe the company's high spending is aimed at transforming it into a stronger enterprise for the future [1][2]. Financial Performance - For the first quarter ending in June, Arm's revenue grew by 12% to $1.05 billion, with earnings per share at $0.35, meeting analyst expectations [1]. - Licensing revenue was $468 million, a year-on-year decline of 1%, exceeding the average analyst forecast of $456 million; royalty revenue was $585 million, a 25% year-on-year increase, slightly below the analyst expectation of $595 million [1]. - Q2 revenue is projected to be between $1.01 billion and $1.11 billion, with analysts expecting $1.06 billion; adjusted earnings per share are expected to be between $0.29 and $0.37, aligning with the average analyst estimate of $0.35 [1]. Strategic Shift - Arm is significantly increasing its spending to capitalize on opportunities in the artificial intelligence sector, with CEO Rene Haas emphasizing the commitment to developing technologies that solidify its position in AI [1]. - Analysts from Needham noted that Arm appears to be transitioning from a traditional IP business model to a product-based model, indicating a major change in its cost structure to support new opportunities, particularly in the chiplet domain [2]. - Morgan Stanley maintains an "overweight" rating, projecting that Arm's operational spending will reach $655 million in Q2, indicating preparation for long-term demand [2]. Analyst Ratings and Future Outlook - Guggenheim analysts reaffirmed a "buy" rating with a target price of $187, viewing Arm as a clear beneficiary of AI alongside companies like Oracle and Microsoft [2]. - KeyBanc reiterated an "overweight" rating and raised its target price from $175 to $190, suggesting that Arm's investment in chip development could yield significant revenue if it captures even 10% of the market share [2].