New York, January 19, 2026, 19:20 EST — Market closed.
- Arm’s U.S.-listed sponsored ADRs ended Friday at $105.78, gaining roughly 0.6%.
- Investors are on edge ahead of CEO comments at Davos and Arm’s earnings report on Feb. 4.
- Analysts have highlighted smartphone demand and customer concentration as major variables influencing outcomes.
Arm Holdings’ sponsored ADRs (ARM.O) edged up 0.6% to end Friday at $105.78, moving within a range of $107.96 to $105.19 during the session. After-hours trading saw the ADRs last change hands at $106.10. 1
The holiday break comes as investors consider if Arm can maintain its pricing power and sustain royalty growth through 2026. Arm focuses on developing and licensing processor design IP and related software, not chip manufacturing. 2
Traders face a narrow window of dates and limited new company updates to break up the focus. With the stock already volatile, even slight changes in demand, pricing, or customer composition can trigger big moves.
U.S. stock and bond markets remained shut Monday in observance of Martin Luther King Jr. Day. Normal trading hours will pick back up on Tuesday. 3
Arm’s stock has slipped 7.24% in the past month and dropped 29.13% over the last year, MarketBeat data shows. The firm’s market cap was roughly $111.76 billion at the most recent close. 4
On January 20, the Financial Times will host an in-person event in Davos spotlighting Arm CEO Rene Haas. The session, titled In Conversation with Arm, promises a deep dive into the semiconductor market and Arm’s strategic direction.
Arm announced on January 7 that it will release its financial results for the third quarter of fiscal year 2026 on February 4, after the market closes. The company plans to hold a webcast at 5 p.m. Eastern. 5
At CES on January 7, Arm revealed it has restructured into three divisions: Cloud and AI, Edge, and a newly formed “Physical AI” unit that merges automotive and robotics. Drew Henry, heading the new unit, said physical AI has the potential to “fundamentally enhance labor.” He also emphasized, “We work with everyone,” as Arm pushes deeper into robotics, competing with firms like Tesla and Nvidia. 6
On January 13, BofA Securities downgraded Arm to “neutral” and set a $120 price target. They cautioned that licensing revenue for fiscal 2026 might fall roughly 5% when excluding SoftBank fees, noting that SoftBank accounts for up to 30% of total licensing revenue. Analysts, including Vivek Arya, pointed out that the shift to Arm’s latest chip architecture is “now generally complete,” which could pressure future royalty streams. 7
But the situation works both ways. Should smartphone shipments drop more than predicted, or if customers hesitate to embrace new designs, Arm’s royalty growth could stall quickly — and the stock tends to react sharply when guidance falls short.
Trading picks up again Tuesday, with investors keen to see if Arm follows the broader chip sector or reacts to its own news. Key dates ahead: Haas at Davos on January 20, then Arm’s earnings and guidance due February 4.
