Needham Reiterates Hold Rating on Arm Holdings

Needham analyst Charles Shi reiterated a Hold rating on Arm Holdings (NASDAQ: ARM).

“ARM reported a beat-and-raise quarter, but with revenue from SoftBank increasing through the year (now $200MM/qtr), ARM is showing a hard deceleration in “organic” revenue (from 21.2% in FYE25 to 8.8% in FYE26).

Looking ahead, management still sees 20% growth in FYE27, and a potential acceleration in FYE28 once the upcoming custom silicon business ramps up.

The company announced an investor event on March 24, which we believe will unveil the company’s silicon strategy.

Maintain Hold.”

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