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2d ago

Arm Shares Slide Over 8% Following Disappointing Q1 Guidance

Record Q4 revenue and profit growth fail to offset market concerns over weaker-than-expected projections for the upcoming quarter.

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A screen displays the logo of Arm Holdings at the Nasdaq Market site in New York, U.S., September 14, 2023. REUTERS/Brendan McDermid/File Photo
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Overview

  • Arm Holdings reported record Q4 FY25 revenue of $1.24 billion, a 34% year-over-year increase, surpassing analyst expectations.
  • Adjusted net income for the quarter rose to $584 million, or 55 cents per share, exceeding Wall Street estimates.
  • Royalty revenue grew 18% to $607 million, while license and other revenue surged 53% to $634 million during the quarter.
  • The company's Q1 FY26 guidance forecasted revenue of $1 billion to $1.1 billion and EPS of 30 to 38 cents, falling short of analyst consensus.
  • Following the weaker-than-expected guidance, Arm's shares dropped over 8% in after-hours trading, highlighting ongoing market sensitivity to its forecasts.