Bubble Wrap maker Sealed Air surges on report of buyout talks
Investing.com - Loop Capital raised its price target on Arm Holdings (NASDAQ:ARM) to $180.00 from $155.00 while maintaining a Buy rating following the company’s September quarter earnings report released on November 6. This target represents a potential 22% upside from ARM’s current price of $147.57, though InvestingPro data indicates the stock is trading above its calculated Fair Value, with a P/E ratio of 188.3.
Arm Holdings delivered what Loop Capital described as a "solid quarter" with revenue and earnings per share exceeding both the midpoint of guidance and Street expectations. The December quarter guidance was also moderately above initial analyst estimates. This performance aligns with InvestingPro data showing that 12 analysts have revised their earnings upwards for the upcoming period.
The company reported royalty revenue of $620 million, representing 21% year-over-year growth, driven by expansion across all major markets including data centers, smartphones, automotive, and IoT. Arm specifically highlighted "unprecedented compute demand" that led to data center Neoverse royalties more than doubling year-over-year. This contributes to ARM’s impressive overall revenue growth of 24.81% over the last twelve months and an exceptional gross profit margin of 97.39%.
Licensing and other revenue reached $515 million, up 56% year-over-year, attributed to the timing and size of license agreements and backlog contributions. The company added three new Compute Subsystem (CSS) licenses during the quarter, bringing the total to 19 across 11 companies, with CSS commanding double the royalty rate of Armv9. ARM’s strong licensing performance has helped the company maintain a healthy financial position, with liquid assets exceeding short-term obligations and a moderate debt level.
For the December quarter, Arm Holdings forecasts revenue between $1.175 billion and $1.275 billion with EPS of $0.37-$0.45, projecting royalties to grow 20% year-over-year and licensing to increase 25%-30% year-over-year, while operating expenses are expected to rise to approximately $720 million. With a market capitalization of $156.64 billion, ARM’s stock movements remain quite volatile (Beta of 4.13). Investors seeking deeper insights can access ARM’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which transforms complex financial data into actionable intelligence.
In other recent news, Arm Holdings reported strong fiscal second-quarter results, surpassing expectations in both royalties and licensing revenues. The company attributed its performance to increased smartphone royalties and higher shipments of its Armv9 architecture. Additionally, Arm provided guidance for the fiscal third quarter that is approximately 10% above market expectations, driven by early smartphone royalty ramps and accelerated data center royalty revenue. In response to these results, KeyBanc raised its price target for Arm Holdings to $200, maintaining an Overweight rating, while UBS adjusted its target to $195 due to higher operating expenses, yet retained a Buy rating. William Blair reiterated an Outperform rating following the company’s better-than-expected results. Meanwhile, Needham held its Hold rating, noting the strong quarterly performance and guidance. In the broader microprocessor market, AMD and ARM gained market share in the third quarter of 2025, as Intel experienced a decline, according to Mercury Research. This shift was attributed to stronger-than-expected growth in server and notebook CPU shipments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.