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Will Top-Line Improvement Aid Arm Holdings' Q4 Earnings?

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Key Takeaways

  • Arm Holdings is set to report Q4 FY2026 results on May 6, with revenues seen rising 18.2% YoY.
  • ARM's growth is driven by strong royalty and license revenues tied to its ecosystem strength.
  • ARM shows 0.00% Earnings ESP and Zacks Rank #3, offering no clear signal of a beat.

Arm Holdings plc (ARM - Free Report) is scheduled to report its fourth-quarter fiscal 2026 results on May 8, after the bell.

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is currently pegged at $1.47 billion, suggesting 18.2% year-over-year growth. We expect continued strong Royalty and License revenues to have driven the top-line strength in the quarter.

ARM’s core strength lies in a two-sided network effect connecting software developers and hardware manufacturers within a mutually reinforcing ecosystem. Over time, ARM’s architecture has evolved into the preferred standard for device makers, largely due to its compatibility with major operating systems such as Android, iOS, Windows and Linux.

Revenue strength and operating performance are likely to have driven EPS in the to-be-reported quarter, the consensus estimate for which stands at 58 cents, indicating 5.5% year over year growth.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for ARM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

ARM has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks that, according to our model, have the right combination of elements to beat on earnings this season.

Coherent Corp. (COHR - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank of 2. The company is scheduled to declare its third-quarter fiscal 2026 results on May 06.

The Zacks Consensus Estimate for COHR’s third-quarter fiscal 2026 revenues is pegged at $1.78 billion, indicating year-over-year growth of 18.8%. For earnings, the consensus mark is pegged at $1.41 per share, implying a 55% rise from the year-ago quarter’s actual. Coherent beat the consensus estimate in each of the trailing four quarters, delivering an earnings surprise of 7.7% on average.

Clean Harbors, Inc. (CLH - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank of 2. The company is scheduled to declare its first-quarter 2026 results on May 6.

The Zacks Consensus Estimate for CLH’s first-quarter 2026 revenues is pegged at $1.47 billion, indicating a 2.3% year-over-year growth. The consensus estimate for earnings is pegged at $1.15 per share, implying a year-over-year growth of 5.5%. Clean Harbors beat the consensus estimate in three of the last four reported quarters and missed once, with the average earnings surprise being 0.8%.

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