At CES 2026 in Las Vegas, Arm Holdings announced the creation of a dedicated Physical AI unit aimed at accelerating adoption of its chip designs in robotics and industrial automation. The reorganization brings together 150 engineers from Arm’s IoT and machine learning teams under a single leadership structure. Executives highlighted partnerships with three major robotics OEMs—Including ABB, Boston Dynamics and FANUC—to integrate Arm’s energy-efficient Neoverse cores into next-generation robotic controllers. The move underscores Arm’s strategy to capture an estimated $15 billion robotics chip market by 2028, projecting that Physical AI revenue will account for 10% of total licensing income within two years.

In late December, Arm’s American depositary shares tumbled nearly 20% following a “Sell” recommendation from a leading Wall Street analyst who cited valuation concerns in light of rising semiconductor competition. That downgrade coincided with the company’s largest investor, SoftBank Group, taking out a multi-billion-dollar margin loan against its Arm stake. SoftBank pledged up to $5 billion in borrowings to shore up liquidity, unsettling some investors over potential forced share sales if Arm’s price fails to rally. Trading volume spiked to more than 60 million shares on the day of the rating release, triple the ten-day average, reflecting heightened investor nervousness.

Arm confirmed it will release financial results for the third quarter of fiscal 2026 on Wednesday, February 4, after market close. The company will host a live audio webcast at 14:00 Pacific Time (17:00 Eastern Time) to discuss revenue trends, licensing milestones and the outlook for its Physical AI segment. Management indicated investors should listen for updates on royalty growth from data center deployments and expected margins in the low-to-mid 80s percentage range. A replay of the call will be available on Arm’s investor relations site for four weeks following the event.