At CES 2026, Arm executives announced the formation of a new Physical AI unit as part of a broader corporate reorganization designed to accelerate the company’s entry into robotics. The unit will leverage Arm’s existing CPU and GPU IP to develop specialized semiconductor platforms for autonomous machines, with an initial focus on industrial robots and unmanned aerial vehicles. Arm plans to invest $50 million in R&D over the next 12 months and to collaborate with at least five robotics OEMs by year-end. Executives indicated that shipments of Physical AI–enabled chip designs could begin sampling in the second half of fiscal 2026, positioning Arm to capture a share of the projected $40 billion robotics semiconductor market by 2030.

In late December, Arm shares fell almost 20% following a ‘Sell’ rating from a prominent Wall Street analyst who cited concerns about the company’s valuation relative to growth projections. The report questioned Arm’s ability to sustain double-digit revenue growth given intensifying competition in data-center AI chips. Simultaneously, Arm’s largest shareholder executed a multi-billion-dollar margin loan secured against its stake, exacerbating downward pressure on the stock. Trading volumes surged to three times the monthly average on the day of the rating release, underscoring heightened investor uncertainty.

Arm confirmed that it will release third-quarter fiscal 2026 financial results on Wednesday, Feb. 4, after market close, followed by a conference call at 14:00 Pacific Time. Management will discuss revenue trends, gross margin performance, and guidance for the remainder of the fiscal year. In the prior quarter, Arm reported year-over-year revenue growth of 27% and an adjusted operating margin of 52%, driven by strong demand for AI compute licenses. Investors will be watching for any revisions to full-year revenue guidance, which currently forecasts mid-20% growth based on continued uptake of Arm’s Neoverse and AI-optimized cores.