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22h ago

Arm Holdings Shares Fall Over 8% After Q1 Revenue and Guidance Miss

Arm reported $1.05 billion in first-quarter sales with earnings per share in line, forecast a second-quarter revenue range below analyst views and signaled heavier investment in chiplet and system R&D

Rene Haas, CEO of chip tech provider Arm Holdings, holds a replica of a chip with his company's logo on it, during an event in which Malaysia's Prime Minister Anwar Ibrahim officially announces a $250 million deal with the company, in Kuala Lumpur, Malaysia March 5, 2025. REUTERS/Hasnoor Hussain/File Photo
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A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
Arm Holdings, which started in Cambridge, also has headquarters in Silicon Valley

Overview

  • First-quarter revenue stood at $1.05 billion, missing analyst estimates by $10 million; adjusted earnings per share matched expectations at $0.35.
  • The company forecast second-quarter revenue between $1.01 billion and $1.11 billion, falling short of the $1.056 billion analyst consensus.
  • Shares fell more than 8% in after-hours trading on Nasdaq following the earnings release and cautious outlook.
  • Royalty income rose 25% year-on-year to $585 million, driven by adoption of the Armv9 architecture, the ramp of chips based on Arm CSS and expanded data-center usage.
  • CEO Rene Haas said Arm will invest more heavily in research and development and is exploring chiplet and full-system design capabilities.